You either don't really believe this, or you are a dumbass. You really think that prices haven't gone up on a number of consumer goods from fuel to food over the last few months? This is where I should reprint your post again and attach a cute picture that says FAIL across it.
You claim to be such a great economist, and I know you have praised bush. I bet you work for Bear Sterns
Well...you removed all doubt. You are simply a dumbass. Intro level economics will tell you that a one month measure of inflation isn't really meaningful. For any real statistical value, you have to look at it at least quarterly. I know that the gas stations between my house and the freeway were charging between $2.93 and $3.03 about 6 weeks ago. This morning it was between $3.15 and $3.31. Sure...no inflation there. Of course, the lame ass article you cling to so dearly doesn't even count the cost of energy. Sheer genius. This WILL have an effect on the rest of the economy. As it costs more to ship goods, those goods will increase in price. Six months ago, a trip to the grocery store cost me $100 to $125. Now it costs at least $175 for the same groceries. Nope...no inflation there. I can read well. I just think the article you posted is meaningless crap, skewed to say what the author wants it to say. You can twist stats to say whatever you want if you exclude whatever info you want from it. I submit to you that it is not I who is r****ded in this exchange.
I love how you try to disprove broad economic measures by one aspect of the same measure. I guess you didn't learn anything about logic in law school, either. Oh well. Keep trying to disprove hard data with your anecdotal evidence and sage predictions for the future. Good fun
I learned plenty about logic. I also learned that you should probably bother to read the entire article before posting. Your own article, which you cling to so dearly to make your moronic point states that we have been in an inflationary period. Over the last 12 months (a better indicator), consumer prices have increased by 2.3%. Consumer prices climbed by .9% in November, and .4% in December and January. The analysts quoted in your article state that any relief in February will reverse in the coming months, and prices will resume their climb. Figure it out. Inflation is becoming a problem.
"What can you do?" the senior delegate told Reuters. "Prices are completely ignoring the fundamentals of supply and demand. Even if we had increased (at the meeting), I don't think it would have changed anything. It is financial speculators, the weak dollar and funds driving the price." OPEC officials have long insisted factors beyond their control are fuelling oil's rally. yahoo
Maybe the price of a necessary good, such as oil, should be set by supply and demand rather than by the "gambling" of overly exuberant or overly pessimistic speculators.
LOL this just keeps getting better the more you type. consumer prices have increased by 2.3% over the past 12 months? That's what you call "problem inflation"? sounds like aggie arithmetic to me ps - If inflation is such a problem, and the dollar is at a crisis stage level of weakness, would that lessen the financial blow to you to donate money to the tipjar? Yes or no?
The federal government has a comfort level of inflation of between 1 and 2%. 2.3 over the last 12 months exceeds that comfort level. The analysts quoted in the article you posted state that they expect consumer prices to continue upward in the coming months. You may not want to believe that inflation is becoming a problem, but it is. Oh...and the tipjar. Good point. I will make that happen in the coming days.
I looked the gasoline, milk, bread.... the price went up almost 24%, the inflation is no where near that, neither is my salary raise. There you have it: the unfathomable gap.
$115 Today http://money.cnn.com/2008/04/16/markets/eia/index.htm?cnn=yes NEW YORK (CNNMoney.com) -- Oil prices settled at a record high for the third day in a row on Wednesday. Prices spiked to a record $115.07 a barrel in midday trading, after a government report showed an unexpected crude supply drop. U.S. light sweet crude for May delivery settled at $114.93 a barrel on the New York Mercantile Exchange. In the short term, momentum could push crude prices higher still, according to Brian Hicks, co-manager of the Global Resources Fund at U.S. Global Investors. However, Hicks says, "at some point, seasonal factors will come into play and we will see a pullback in the second quarter." There is lower demand for crude in the second quarter because consumers are in between the winter heating months and the summer driving months. Crude began the year at just under $96 a barrel, which means the price has soared by nearly 20% already this year. In its weekly inventory report, the Energy Information Administration said crude stocks fell by 2.3 million barrels in the week ended April 11. Analysts had been expecting an increase of 1.7 million barrels after last week's unexpected drop, according to a Dow Jones poll. Refining gasoline Oil's above-$100 run has been attributed by many economists to the decline in value of the dollar and poorly performing stock markets. Investors buy commodities such as crude oil and gold to preserve the value of their assets. The dollar sank to a new low versus the 15-nation euro Wednesday as a government report showed the number of new residential construction projects fell to its lowest level in 17-years Refineries only operated at 81.4% capacity, EIA said, down from a normal rate of around 90% this time of year. That led one analyst to blame the brief oil retreat on slowing demand for crude. "Why do we need crude supplies?" said Phil Flynn, senior market analyst with Alaron Trading in Chicago. "People are starting to look at these [inventory] numbers in a different way." Refineries are using less crude because, with oil prices at record highs, it now costs more to make gasoline. "Prices of gasoline haven't gone up in sync with crude oil," said Mark Waggoner, president of Excel Futures in California. With refineries operating at low rates, gasoline production last week fell. The EIA said gasoline supplies fell by 5.5 million barrels. Analysts had only expected a drop of 1.7 million barrels. Oil prices have risen about 77% over the last year, and have set new record highs over the last few months. Slowing demand Gasoline prices have also risen along with crude, although not as fast. According to AAA gasoline prices hit a new record of $3.399, up one and three tenths of a cent from the previous day's price of $3.386. The high prices have crimped demand for gas. EIA said gasoline demand rose 0.8% over the last four weeks. "Usually you would expect [demand] growth of 1.4 to 2%," said Flynn. "What we're seeing is price-related demand destruction." Refineries have greater incentive to produce distillates, a vital component of diesel fuel, since the price of diesel at the pump has been rising much faster than gasoline. Distillate supplies rose by 100,000 barrels, according to the EIA. Analysts expected a decline of 1.5 million barrels.
