The problem with just using something like food costs like flour as a gauge of inflation is that its not indicative of the entire market. Similarly to judging inflation by looking at oil. Lower interest rates spur inflation by overheating growth - these food costs increase are not b/c of that but a result of ethanol demand, drought, overseas growth. I do think inflation is going to be a serious concern and is a concern, but I'd hesitate to say we've already seen the impact of the rate cuts on this inflation. More later...
Wait, what? You realize that our economy is basically driven by people who buy **** with their disposable income right? So if you raise the price of the bare necessities, no matter how little the overall picture changes, that has a huge impact on the amount of aforementioned disposable income. It doesn't matter if a big screen TV costs 100$ less next month, if I have to pay $100 more for groceries, I'm still not going to buy it. Think, bigtexxx, THINK. The coming tax refunds are geared towards middle-income families who WILL be affected by the rise in prices of the basics. You think that a 20-30% increase in grocery, gas/utility bills won't have an impact on the economy? The investment firms have all factored the tax rebates into their future projections, but I'm pretty sure that if something isn't done to address inflation on bare necessities, the tax refunds will do nothing to stimulate the economy.
When the price of fuel has tripled in 3 years, inflation is going to happen. I'm supprised it hasn't gone higher.
Texxx as usual looking like a doofus in an economy thread. Quell my shock. I give Ben an "ok". He got into a nasty situation, but his "professor-esque" tactics are not very helpful.
