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Keyword: inflation

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  • The 10 Fastest Rising Food Prices

    04/17/2014 10:58:45 AM PDT · by Oshkalaboomboom · 26 replies
    24/7 Wall Street ^ | April 17, 2014 | Alexander E.M. Hess and Thomas C. Frohlich
    Food prices at the grocery store are up, following an increase in production costs and wholesale prices. In March, retail food prices rose 0.4% from the preceding month, matching Februaryís increase. These marked the largest monthly gains in food prices since September 2011, according to data from the Bureau of Labor Statistics. Food prices are often volatile and are affected by a number of factors. While certain factors reflect human decision ó such as the changing tastes of consumers and farmersí planting choices ó others are forces over which farmers have very little control. Issues such as weather conditions and...
  • Soaring Food Inflation Full Frontal: Beef, Pork And Shrimp Prices Soar To Record Highs

    04/17/2014 6:29:53 AM PDT · by SoFloFreeper · 33 replies
    We previously noted that both beef and pork (courtesy of the affectionately named Porcine Epidemic Diarrhea virus) prices have been reaching new all time highs on an almost daily basis. It is time to update the chart. Below we show what a world in which the Fed is constantly lamenting the lack of inflation looks like for beef prices...
  • Shrimp Is Big. Now It's Sick. And Really Expensive [Link Only]

    04/16/2014 9:46:17 AM PDT · by C19fan · 16 replies
    Bloomberg [Link Only] | April 15, 2014 | Leslie Patton
    link only:

    04/15/2014 5:58:37 AM PDT · by blam · 49 replies
    BI ^ | 4-15-2014 | Matthew Boesler
    CORE INFLATION UNEXPECTEDLY RISES Matthew BoeslerApril 15, 2014, 8:30 AM ÔÄÉ ÔÉĀ Ôāě Ôāô ÔÉē Inflation unexpectedly accelerated in March due to increased costs of food and shelter, according to just-released data from the U.S. Bureau of Labor Statistics. Both the headline consumer price index and the "core" price index (which excludes food and energy prices) advanced 0.2% in March from the previous month, ahead of consensus estimates for a 0.1% rise in both series, matching February's pace. The year-over-year change in the core index rose to 1.7% from 1.6%, while the year-over-year change in the headline index was boosted...
  • The Truth About Buying Gold And Silver

    04/12/2014 10:48:13 PM PDT · by Petro · 67 replies
    Cutting Through The Fog ^ | April 11, 2014 | George B
    Friday, April 11, 2014 The Truth About Buying Gold And Silver Every day, the radio airways and cable news broadcasts are filled with advertising from "gold bug" companies who are trying to convince you to buy both gold and silver. There are dozens of them: Goldline, Lear Capital, Rosland, Merit, and so on. All of whom claim that, by holding these precious metals, you are being protected against inflation as a result of massive government spending and the devaluation of the dollar, or, protected against another recession, depression, or stock market crash. The problem is that all of those claims...
  • Producer inflation accelerates in March

    04/11/2014 12:09:56 PM PDT · by 1rudeboy · 5 replies
    Reuters ^ | Fri Apr 11, 2014 | Lucia Mutikani
    (Reuters) - U.S. producer prices recorded their largest increase in nine months in March, but that jump will probably not ignite inflation pressures as economic growth remains moderate. The Labor Department said on Friday its seasonally adjusted producer price index for final demand increased 0.5 percent last month, after slipping 0.1 percent in February. The increase last month, which was the largest since June last year, reflected a surge in the prices of food and trade services. "Will inflation accelerate? Probably, but not rapidly," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "Growing demand should stabilize...
  • The State Of The Big Four Recession Indicators

    04/04/2014 4:36:57 PM PDT · by blam · 7 replies
    BI - Advisor Perspetives ^ | 4-4-2014 | Doug Short, Advisor Perspectives
    The State Of The Big Four Recession Indicators Doug Short, Advisor Perspectives April 4, 2014, 6:25 PM Note from dshort: This commentary has been revised to include today's release of the March Nonfarm Employment data.Official recession calls are the responsibility of the NBER Business Cycle Dating Committee, which is understandably vague about the specific indicators on which they base their decisions. This committee statement is about as close as they get to identifying their method. There is, however, a general belief that there are four big indicators that the committee weighs heavily in their cycle identification process. They are: Industrial...
  • Deflating the Deflation Myth

    04/02/2014 3:55:29 PM PDT · by BfloGuy · 28 replies
    The Mises Institute ^ | 4/2/2014 | Chris Casey
    The fear of deflation serves as the theoretical justification of every inflationary action taken by the Federal Reserve and central banks around the world. It is why the Federal Reserve targets a price inflation rate of 2 percent, and not 0 percent. It is in large part why the Federal Reserve has more than quadrupled the money supply since August 2008. And it is, remarkably, a great myth, for there is nothing inherently dangerous or damaging about deflation. Deflation is feared not only by the followers of Milton Friedman (those from the so-called Monetarist or Chicago School of economics), but...
  • Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold

    03/28/2014 8:46:41 AM PDT · by blam · 37 replies
    Zero Hedge ^ | 3-28-2014 | Tyler Durden
    Japanese Prepare For "Abenomics Failure", Scramble To Buy Physical Gold Tyler Durden 03/28/2014 10:42 -0400 As we reported yesterday, the world's most clueless prime minister, Japan's Shinzo Abe, has suddenly found himself in a "no way out" situation, with inflation for most items suddenly soaring (courtesy of exported deflation slamming Europe), without a matched increase in wages as reflected in the "surprising" tumble in household spending, which dropped 2.5% on expectations of a 0.1% increase in the month ahead of Japan's infamous sales tax hike. How does one explain this unwillingness by the public to buy worthless trinkets and non-durable...
  • Census office survey scandal grows as inflation stats faked

    03/27/2014 9:44:30 AM PDT · by lowbridge · 64 replies ^ | march 26, 2014 | john crudele
    The Census Bureauís Philadelphia office wasnít just corrupting the nationís unemployment rate by fabricating data. It was also filing false information about inflation in this country. Just how large an effect this fraud was having on the Consumer Price Index (CPI) ó and consequently the cost of living adjustments for Social Security recipients and others ó is not yet known.
  • 'Smoking Gun' Evidence of Inflation?

    03/26/2014 5:59:56 PM PDT · by lasereye · 2 replies
    ICR ^ | March, 2014 | Jake Hebert, Ph.D.*
    On March 17, a team of radio astronomers announced they discovered purportedly direct evidence for cosmic inflationóa critical component of the modern Big Bang model. To make this discovery, the researchers used a specialized telescope called BICEP2 located on the Antarctic plateau.1 Radiation that has its strongest intensity in the microwave portion of the electromagnetic spectrum comes to us from all directions in space. Secular researchers interpret this cosmic microwave background radiation (CMB) as "relic radiation" from a time about 400,000 years after the alleged cosmic explosion. Now, a team of astronomers led by John M. Kovac of the Harvard-Smithsonian...
  • The Real Inflation Fear - US Food Prices Are Up 19% In 2014

    03/26/2014 10:40:32 AM PDT · by blam · 53 replies
    Zero Hedge ^ | 3-26-2014 | Tyler Durden
    The Real Inflation Fear - US Food Prices Are Up 19% In 2014 Tyler Durden 03/26/2014 10:20 -0400We are sure the weather is to blame but what happens when pent-up demand (from a frosty east coast emerging from its hibernation) bumps up against a drought-stricken west coast unable to plant to meet that demand? The spot price (not futures speculation-driven) of US Foodstuffs is the best performing asset in 2014 - up a staggering 19%...(snip)We're not allowed to post charts from Bloomberg so you'll have to click to the site to see the chart.
  • Why Food Prices Are Surging

    03/25/2014 9:38:15 AM PDT · by blam · 51 replies
    BI ^ | 3-25-2014 | Matthew Boesler
    Why Food Prices Are Surging Matthew Boesler Mar. 25, 2014, 12:06 PM Since the beginning of the year, food prices have been on a tear. In a new report, Morgan Stanley commodities analysts led by Adam Longson attribute the surge in prices to a number of factors, "from weather (in the case of sugar, soybeans and coffee) to disease (in the case of hogs) to geopolitics (wheat and corn)." The Morgan Stanley analysts don't believe this will continue. "To date, weather concerns in South America have proven overstated, as evidenced in the recent declines in sugar prices," they say. "Tensions...
  • The Euro Is Not Overvalued (Nor Is Any Other Currency)

    03/22/2014 4:24:25 PM PDT · by BfloGuy · 5 replies
    The Mises Institute ^ | 3/22/2014 | Frank Hollenbeck
    A common argument for dumping the Euro is that it is overvalued, and that the ECB (European Central Bank) is unwilling to correct this so-called ďproblem.Ē This overvaluation is regularly cited as being over 10 percent against the dollar. The Swiss central bank surrendered control of its money supply by fixing its currency at 1.2 against the Euro essentially on the notion that its currency was ďovervalued.Ē Advocates of a Euro breakup consider that a country with its own currency can then follow an independent monetary policy ensuring a competitive exchange rate. Never mind that neither the USA nor Great...
  • Harry Dent Video

    03/22/2014 11:05:18 AM PDT · by Arthur McGowan · 10 replies
    Harry Dent Video ^ | March 22, 2014 | Harry Dent
    Harry Dent predicts mild inflation, then massive deflation, then mild inflation.
  • Beef Prices Surge Most In A Decade As Food Inflation Soars

    03/19/2014 9:06:27 PM PDT · by Nachum · 19 replies
    zero hedge ^ | 3/19/14 | tyler durden
    Just a month ago we warned that food inflation was on its way. Today we got the first confirmation that problems are on their way. While headline data washes away the nuance of what eating, sleeping, energy-using human-beings are paying month-in and month-out, the fact, as WSJ reports, that beef prices surged by almost 5% in February - the biggest change since Nov 2003 - means pinching consumers and companies pocketbooks that are still grappling with a sluggish economic recovery. "Things are definitely more expensive," exclaimed on mother of three, "I can't believe how much milk is. Chicken is crazy...
  • Ayn Rand Reconsidered

    03/18/2014 6:25:16 AM PDT · by Academiadotorg · 38 replies
    Accuracy in Academia ^ | March 14, 2014 | Malcolm A. Kline
    Sheís been derided in academia for decades: Panels disparaging her works are not unusual at the Modern Language Associationís annual confab. Yet and still, her virulent atheism has made her controversial on the right, where, it would seem, she would find a more sympathetic audience. Nevertheless, when it came to worldly matters, she was uncommonly prescient. For one thing, the Russian-born novelist had a keener understanding of the U. S. Constitution than many American Constitutional law professors do today. ďThe Bill of Rights was not directed against private citizens, but against the governmentóas an explicit declaration that individual rights supersede...
  • U.S. Producer Prices Fall, Offer Little Sign Of Inflation Pressure

    03/14/2014 7:04:07 AM PDT · by mykroar · 5 replies ^ | 3/14/2014 | Reuters
    U.S. producer prices fell in February, dragged down by falling costs for services and offering little sign of a pickup in inflation pressures. The Labor Department said on Friday its seasonally adjusted producer price index for final demand dropped 0.1 percent last month. U.S. inflation has held at a very low level in recent years because of a persistently high unemployment rate. This is expected to push the Federal Reserve to keep its benchmark interest rate near zero for many more months even as the central bank dials back its monetary stimulus. Prices received by the nation's factories, retailers and...
  • U.S. Millionaires Club Grows To Almost 10 Million

    03/14/2014 6:28:43 AM PDT · by SeekAndFind · 10 replies
    TIME ^ | 03/14/2014 | Noah Rayman
    A record 9.63 million households had a net worth of $1 million or more last year, a 58 percent increase from 2008. The number of affluent households worth between $100,000 and $1 million also went up in 2013 There was a record 9.63 million households in the U.S. with a net worth of $1 million or more last year, according to new market research. The number of millionaire households surged 58 percent from a dip in 2008, when there were 6.7 million households worth $1 million or more (not including primary residences). In 2007, there were 9.2 million households worth...
  • Food Price Inflation Scares The Fed

    03/14/2014 6:42:27 AM PDT · by SeekAndFind · 22 replies
    American Thinker ^ | 03/14/2014 | Chriss Street
    Stock markets around the world fell today, led by the 246 point dive, or 1.5%, for the U.S. Dow Jones Industrial Average and the 1.9% drop for German stock market index.¬† Analysts generally pointed to worries about a shrinking Chinese lending and the potential trade war between Russia and the West, but I am more concerned that since the beginning of 2014 food prices have skyrocketed.¬† The Federal Reserve must be concerned that their international support for ‚Äúcheap money policies‚ÄĚ to stimulate economic growth may be funding commodity speculation that is driving prices higher and creating wide spread misery. If...
  • The Fed Is Not Printing Money, It's Doing Something Much Worse

    03/10/2014 7:03:39 AM PDT · by SeekAndFind · 18 replies
    Forbes ^ | 03/09/2014 | John Tamny
    The Federal Reserveís seemingly endless program of quantitative easing (QE) begun under Ben Bernanke, and continuing at a slightly slower pace under Janet Yellen, has some of the punditry and much of the electorate up in arms. With good reason. Implicit in quantitative easing is the horribly obtuse notion that central banks can produce real economic growth through their monetary machinations. If only life were so simple. Back in the world of the reasonable, the sole purpose of money is as a stable measure of value that facilitates the exchange of goods and investment. Quantitative easing, by its very name,...
  • How California Voters Raised the Price of Eggs Across America

    03/08/2014 11:22:49 AM PST · by SeekAndFind · 274 replies
    Frontpage Mag ^ | 03/08/2014 | Daniel Greenfield
    In 2008, California voters endorsed Proposition 2 which banned the confinement of animals. California egg producers had to ensure that chickens had enough room to move around which negated so-called ‚Äúfactory farming‚ÄĚ and would end up raising the price of eggs by 20%.Obviously this was a problem for California agriculture which would have trouble competing on price with free agriculture. And there‚Äôs only so much of a market for fair-trade free-range organic chickens lovingly raised in a Quaker school by social justice experts on a strict diet of granola and NPR broadcasts.And so California‚Äôs reds decided to instead raise the...
  • Why the price of oil may be about to tank

    03/06/2014 4:21:03 PM PST · by rickmichaels · 63 replies
    Maclean's ^ | March 5, 2014 | March 5, 2014
    Itís easy to get lost in the incremental gyrations of oil prices. ďOil rises on colder weather,Ē screams a headline one day, only to be followed the next by ďCrude edges down on inventory report.Ē When not being driven by ďfears over the Middle East,Ē crude is being hammered by ďweak Chinese data.Ē Youíd almost think energy analysts have a roulette wheel of explanations they spin each time prices move a notch: ďWell, what will it be today? Oh ho! Emerging market turmoil it is.Ē Which is why itís so refreshingóand to be frank, scaryóto talk with Bob Hoye, the...
  • Fed may need to let inflation run hot to meet goals: Evans (here it comes!)

    02/28/2014 3:14:58 PM PST · by Red in Blue PA · 21 replies
    NEW YORK (Reuters) - The Federal Reserve should be willing to let inflation temporarily run above its target level so as to more quickly bring the economy back to health, a top Fed official said on Friday, even as a second policymaker signaled the very idea left him cold. The debate, between Chicago Fed President Charles Evans and Philadelphia Fed President Charles Plosser, underscored a fundamental disagreement over the central bank's optimal approach to policy under new Fed Chair Janet Yellen. To Evans, one of the Fed's most dovish policymakers, allowing inflation to run above the Fed's 2-percent target would...
  • (German) Cost Explosions in electric, gas and oil.

    02/26/2014 6:26:18 PM PST · by Red6 · 6 replies
    Der Spiegel ^ | 2/24/2014 | Florian Diekmann
    Hamburg - Rising energy costs are becoming a problem for more and more citizens in Germany . Alone from 2008 to 2011 , the proportion of so-called energy- poor households in the Federal Republic rose from 13.8 to 17 percent. This is clear from a reply from the federal government to a request of the Green Parliamentary Group , which is present SPIEGEL ONLINE . This is true now more than every sixth household as low energy . Although there is still no generally accepted definition of the concept of energy poverty. However, the definition is widespread , according to...
  • All currencies are an inverse pyramid based on the dollar

    02/23/2014 4:02:02 PM PST · by BfloGuy · 8 replies
    The Cobden Centre ^ | 2/23/14 | Alasdair Macleod
    When US money supply measured by M2 stood at $11 trillion in December 2013, I calculate that total broad money of the next largest 50 countries ranked by GDP amounted to the equivalent of a further US$67 trillion at current exchange rates. And that’s only on-balance sheet: we must add in global shadow banking, estimated by the Financial Stability Board to have been an extra $67 trillion in 2011, probably about $75 trillion today, given its recent rapid growth in China. So when we look at US broad money supply, we should be aware there is a further mountain of...
  • Tomorrowís hamburger may cost as much as todayís steak - Beef prices expected to rise through 2016

    02/22/2014 8:47:27 AM PST · by rickmichaels · 69 replies ^ | Feb. 21, 2014 | Catey Hill
    Beef: Itís what you canít afford for dinner ó for years to come. Retail beef prices are near record highs. During 2013, the price consumers paid for ground beef climbed roughly 5%, according to government data beef price data released Thursday finds that consumers paid an average of nearly $3.50 per pound for 100% ground beef. Whatís more, experts say that climbing beef prices are here to stay. The USDAís Economic Research Service projects that beef prices will rise faster than almost anything else this year. Don Close, a cattle economist with Rabo AgriFinance says he thinks prices this year...
  • Study: Obamacare's insurance tax to impose hundreds of dollars of costs on individuals and families

    02/20/2014 4:56:33 PM PST · by 2ndDivisionVet · 7 replies
    The Washington Examiner ^ | February 20, 2014 | Philip Klein
    A multibillion-dollar tax that President Obama's health care law imposes on the insurance industry will be passed onto consumers, according to a new study by American Action Forum, costing individuals and families hundreds of dollars annually starting this year. As one way of financing the $2 trillion cost of expanding insurance coverage, Obamacare imposes a tax on the health insurance industry, which is assessed to each insurer based on their share of annual premiums collected by the industry. But according to the study by Robert Book of the center-right policy group American Action Forum, "insurers will have to pass most...
  • US consumer prices tick up just 0.1 percent last month despite big gain in energy costs

    02/20/2014 8:11:42 AM PST · by xzins · 167 replies
    Associated Press ^ | 20 Feb 14 | CHRISTOPHER S. RUGABER
    U.S. consumer prices barely rose last month as a sharp increase in energy costs was offset by cheaper clothing, cars and air fares. The figures indicate inflation remains mild. The Labor Department said Thursday that the consumer price index rose just 0.1 percent in January, down from a 0.2 percent gain in December. Prices have risen 1.6 percent in the past 12 months. Excluding the volatile food and energy categories, core prices also rose just 0.1 percent last month and 1.6 percent in the past year. The year-over-year increase in core prices was the smallest in seven months. The "mild...
  • Are We Entering Another Stagflation Era?

    02/19/2014 6:04:43 AM PST · by IBD editorial writer · 14 replies
    Investor's Business Daily ^ | 02/18/2014 | IBD Staff
    Economy: Food and energy prices are rising, wages are flat and the top concern among Americans is unemployment. What was that word coined in the '70s to describe a stagnant economy suffering inflationary pressures? Since the Obama "recovery" started 4-1/2 years ago, inflation appears to have been relatively tame, with core prices climbing just 7% from June 2009 to December 2013. But as CBS News discovered when it looked a little closer, the overall number is deceptive. In fact, it found food prices soaring. The official inflation data confirm this. Overall, food prices are up 9% since June 2009, according...
  • The Economy Is Going to Implode

    02/19/2014 2:56:05 AM PST · by Arthur McGowan · 17 replies
    YouTube ^ | 2012 | Ann Barnhardt
    Ann Barnhardt explains how the whole system is over-leveraged, and that collapse is inevitable--and desired by Obama, Cloward, Piven, etc.
  • Deflation Theory Reality Check and the "Feel Good Effect"

    02/13/2014 10:11:48 AM PST · by Kaslin · 3 replies ^ | February 13, 2014 | Mike Shedlock
    If you repeat something completely inane enough times, do people, even economic writers, believe it?
  • Remembering the Phillips Curve

    02/06/2014 11:32:34 AM PST · by Academiadotorg · 9 replies
    Accuracy in Academia ^ | February 6, 2014 | Spencer Irvine
    It turns out that the man famous for concocting ďthe Phillips CurveĒ that a generation of economics students had to memorize didnít believe in it himself. As Investopedia explains the rise and fall of the curve, ďThe theory states that with economic growth comes inflation, which in turn should lead to more jobs and less unemployment. However, the original concept has been somewhat disproven empirically due to the occurrence of stagflation in the 1970s, when there were high levels of both inflation and unemployment.Ē Tim Harford, a columnist for the Financial Times, claims that the legacy of A. W. H....
  • Our Two Most Onerous Taxes: College Tuition And Healthcare Insurance

    02/03/2014 1:26:49 PM PST · by SeekAndFind · 10 replies
    Zero Hedge ^ | 02/03/2014 | Charles Hugh-Smith
    It is not coincidence that these two unofficial taxes--healthcare and college tuition--are soaring in cost, outpacing all other household expenses. I have long argued that to make an apples-to-apples comparison of real tax rates in the U.S. and other equivalently developed advanced democracies, we have to include two enormous expenses that are funded by the central state in countries such as Denmark and France: healthcare and college tuition/fees. In†The Real-World Middle Class Tax Rate: 75%†(July 5, 2012), I estimated that healthcare insurance (if paid out of gross income, as we self-employed workers do) in the U.S. is roughly equivalent to...
  • Flooding The World With New Currency Is Getting Old

    02/01/2014 7:41:36 PM PST · by Tolerance Sucks Rocks · 2 replies
    Political Outcast ^ | February 1, 2014 | Mark Horne
    A person begins heavy drinking in order to get drunk and stay drunk. Eventually, unless he stops and deals with reality, he drinks just to stay saneóuntil his health collapses. Likewise, a person may get high from heroin but later need the drug just to stay functional. Creating continual flows of new currency ďstimulusĒ works in a similar fashion on the economy. Thus far, the Fedís (now slightly reduced) monetary stimulus has kept the stock market rising. But there are signs that the drug may no longer work to get Wall Street high. According to the Financial Times, ďStocks suffer...
  • How Central Banks Cause Income Inequality

    02/01/2014 3:58:11 PM PST · by BfloGuy · 31 replies
    Mises Daily ^ | 2/1/14 | Frank Hollenbeck
    The gap between the rich and poor continues to grow. The wealthiest 1 percent held 8 percent of the economic pie in 1975 but now hold over 20 percent. This is a striking change from the 1950s and 1960s when their share of all incomes was slightly over 10 percent. A study by Emmanuel Saez found that between 2009 and 2012 the real incomes of the top 1 percent jumped 31.4 percent. The richest 10 percent now receive 50.5 percent of all incomes, the largest share since data was first recorded in 1917. The wealthiest are becoming disproportionally wealthier at...
  • Venezuela And Argentina: The Party Is Over

    Venezuela And Argentina: The Party Is Over Latin Americaís weakest economies are reaching breaking-pointThe Economist Feb 1st 2014 WHEN the euro crisis was at its height it became commonplace for struggling European economies to insist that they were not outliers like Greece. Whatever their woes, they declared, Greeceís were in a class of their own. In Latin America, by contrast, the unwanted title of outlier has two contenders: Argentina and Venezuela. Both have been living high on the hog for years, blithely dishing out the proceeds of an unrepeatable commodities boom (oil in Venezuela; soya in Argentina). Both have been...
  • Why stronger GDP growth isn't creating more jobs

    01/31/2014 7:14:17 AM PST · by SeekAndFind · 35 replies
    FORTUNE ^ | 01/30/2014 | By Stephen Gandel, senior editor
    The government said GDP rose 3.2% in the last three months of 2013 -- one of the fastest rates since the end of the recession, though slower than the third quarter's 4.1%. Still, that sounds good, until you remember this: Employers only added 74,000 jobs in December -- one of the worst months in nearly three years. Stronger economic growth is supposed to equal more jobs. So what gives? It does appear that the normal relationship between jobs and GDP has broken down. In the first half of 2013, for instance, GDP growth was at 1.9% and employers added an...
  • Where Is The Inflation Today?

    01/15/2014 2:45:20 PM PST · by grimalkin · 26 replies
    Mises Economic Blog ^ | 1/15/2014 | Hunter Lewis
    People often ask today: if the Fed has created so much new money, why hasnít it produced more inflation? When the Fed creates masses of new money, it initially flows to Wall Street, which profits from it in a variety of imaginative ways, but from there its path is unpredictable. The Fed inserted into the TARP bill in 2008 the authority to pay interest on bank reserves. Of course this interest is paid by creating even more new money, but it provides an incentive for banks to leave reserves idle. On the other hand, the reserves are not as idle...
  • Beef prices hit record high

    01/13/2014 5:14:13 AM PST · by SoFloFreeper · 53 replies ^ | 1/10/14
    Select grade beef has hit a record high this week. The weather has an impact, but thatís not all... Beef prices will increase by 2.5 to 3 percent this year, according to the USDA. ďFor some peoples' diet itís gonna be a pretty big chunk of change,Ē says George Lesznar of Harveyís Market in D.C. U.S. cattle cost more because of a rebound effect from several years of drought in major producing places like Texas, Nebraska, and Kansas. With the increased cost of feed some ranchers reduced their herds. The USDA called Americaís cattle herd the smallest in 60 years....
  • Is Inflation Understated?

    01/06/2014 1:53:14 PM PST · by SeekAndFind · 16 replies
    Zero Hedge ^ | 01/06/2014 | Shane Obata-Marusic
    Submitted by Shane Obata-Marusic,It‚Äôs ironic that in a day and age where Keynesian economics is the ‚Äúaccepted view‚ÄĚ we still don‚Äôt pay enough attention to what Keynes said about inflation. "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some... Those to whom the system brings windfalls,...become "profiteers," who are the object of the hatred... the process of wealth-getting degenerates into a gamble and a lottery... Lenin...
  • ART LAFFER: I Was Wrong About Inflation And The Fed

    01/03/2014 10:22:34 AM PST · by SeekAndFind · 145 replies
    Business Insider ^ | 01/03/2014 | Rob Wile
    Arthur Laffer is a legend in Washington, having been the leading voice on President Ronald Reagan's hawkish Economic Policy Advisory Board.† His "Laffer Curve," which argued that there are diminishing returns after a certain point of taxation, was taken as gospel.If his views are not quite as frequent a presence in public debate, it's largely because Laffer's pet issues, regulation and taxes, took a back seat during the George W. Bush and Barack Obama administrations. †But Laffer himself still occasionally makes appearances on the public scene.And in June of 2009, he penned an op-ed†warning excessive quantitative easing would inevitably lead...
  • Twelve Days of Christmas valued at $27,393.17 in 2013

    12/26/2013 6:38:19 AM PST · by SeekAndFind · 5 replies
    Washington Times ^ | 12/26/2013 | By Phillip Swarts
    It‚Äôs an economist‚Äôs tradition ‚ÄĒ adding up the cost of the gifts from the holiday standard ‚ÄúThe Twelve Days of Christmas.‚ÄĚ Analysts at PNC Bank recently calculate the combined cost of all those leaping lords, milking maids, golden rings and French hens for 2013 at $27,393.17, a 7.7 percent jump from 2012. Springing for the full song ‚ÄĒ every item each time you sing so you wind up at the end with 12 partridges ‚ÄĒ will cost you $114,651.But the federal government has its own version of the song, with contracts, agencies and programs that ‚ÄĒ with a little stretching...
  • Why Bankers Created the Fed 100 Years Ago

    12/24/2013 1:45:23 PM PST · by Errant · 401 replies
    The Market Oracle, UK ^ | 23 December, 2013 | Christopher_Westley
    The Democratic Party gained prominence in the first half of the nineteenth century as being the party that opposed the Second Bank of the United States. In the process, it tapped into an anti-state sentiment that proved so strong that we wouldn't see another like it until the next century. Its adversaries were Whig politicians who defended the bank and its ability to grow the government and their own personal fortunes at the same time. They were, in fact, quite open about these arrangements. It was considered standard-operating procedure for Whig representatives to receive monetary compensation for their support of...
  • 100 Years Ago: Why Bankers Created the Fed

    12/23/2013 3:22:13 PM PST · by BfloGuy · 138 replies
    The Mises Daily ^ | 12/23/2013 | Christopher Westley
    It is little wonder that early Democrats garnered such popular support and would demand Andrew Jackson end Americaís experiment with central banking. Jackson called it ďdangerous to the liberty of the American people because it represented a fantastic centralization of economic and political power under private control.Ē Itís hard to believe that guy who said that is now on the $20 bill. Jackson also warned that the Bank of the United States was ďa vast electioneering engineĒ that could ďcontrol the Government and change its character.Ē These sentiments were echoed by Roger Taney, Jacksonís Treasury Secretary, who talked of the...
  • Fed could set off year-end fireworks

    12/17/2013 4:26:01 AM PST · by Lucky9teen · 16 replies
    Reuters ^ | Sun Dec 15, 2013 2:09pm EST | By Jonathan Spicer
    (Reuters) - The possibility that the Federal Reserve could finally start to trim its extraordinary stimulus for the economy could make this week an explosive one for financial markets. Though the odds still point to no major policy change when U.S. central bankers meet December 17-18, most of the recent domestic economic data suggest the beginning of the end of their massive bond-buying program is coming sooner than later. If it acts it may reflect as much a growth in confidence in the global economy, for whom the withdrawal of the flow of cheap dollars will be a shock, as...
  • Taper Tantrum: The Fed, Inflation, Unemployment and House Prices

    12/15/2013 1:22:49 PM PST · by whitedog57 · 6 replies
    Confounded Interest ^ | 12/15/2013 | Anthony B. Sanders
    The Federal Reserve Open Market Committee meets on Tuesday and Wednesday of this week. To taper or not to taper, that is the question. Hamlet-to-be-or-not-to-be3 Letís take a look at inflation thus far. Since 1947, there have been only three periods of deflation where the consumer price index (CPI) has fallen for consecutive months: 1949-1950, 1954-1955 and most recently, 2009. inflationcpi121413 Notice that inflation (as defined by yearĖover-year changes in the consumer price index) has been declining since September 1981 when inflation hit 11%. The latest measure of inflation is 0.9% YoY for October 2013. At the same time, house...
  • Common Misconceptions about the Consumer Price Index: Questions and Answers

    12/11/2013 8:31:00 AM PST · by tired&retired
    U.S. Department of Labor Bureau of Statistics ^ | John Greenlees and Robert McClelland
    Some common misconceptions about the Consumer Price Index (CPI.) Those analyses are summarized here: Has the BLS removed food or energy prices in its official measure of inflation? The CPI used to include the value of a house in calculating inflation and now they use an estimate of what each house would rent for -- doesn't this switch simply lower the official inflation rate? When the cost of food rises, does the CPI assume that consumers switch to less expensive and less desired foods, such as substituting hamburger for steak? Is the use of "hedonic quality adjustment" in the CPI...
  • The State Causes the Poverty It Later Claims to Solve

    12/07/2013 2:18:05 PM PST · by BfloGuy · 9 replies
    The Mises Daily ^ | 12/7/2013 | Andreas Marquart
    If one looks at the current paper money system and its negative social and social-political effects, the question must arise: where are the protests by the supporters and protectors of social justice? Why donít we hear calls to protest from politicians and social commentators, from the heads of social welfare agencies and leading religious leaders, who all promote the general welfare as their mission? Presumably, the answer is that many have only a weak understanding of the role of money in an economy with a division of labor, and for that reason, the consequences of todayís paper money system are...
  • The Bankruptcy Of Modern Economics

    12/07/2013 6:03:14 AM PST · by IbJensen · 20 replies
    Forbes Magazine | December 2, 2013 Issue | Steve Forbes
    (This cover of the eminent Economist says it all.) The resounding victory of N.J. Governor Chris Christie has people speculating about the 2016 presidential race, particularly on the Republican side, since itís a given among pols and pundits that Hillary Clintonís nomination for the Democrats is a foregone conclusion (it isnít, but thatís another discussion). The ObamaCare debacle and the foreign policy crises resulting from the Presidentís weakening of American power will be in the forefront. So will the economy. And itís in this area that candidates must exhibit an understanding that has dangerously eluded too many policymakers and...