To: Red in Blue PA
If consumption is down, then why are prices up?
“Free Market”, my ass.
7 posted on
05/30/2014 6:38:42 PM PDT by
Repeal The 17th
(We have met the enemy and he is us.)
To: Repeal The 17th
If consumption is down, then why are prices up?The economy is dying. Production of goods and services is down, but the production of money is up (QEI, QEII, QEInfinity....). More money chasing fewer goods, and you get rising prices -- inflation.
10 posted on
05/30/2014 6:45:45 PM PDT by
kevao
(Biblical Jesus: Give your money to the poor. Socialist Jesus: Give your neighbor's money to the poor)
To: Repeal The 17th
FWIW, my take is this: What is driving prices higher is ‘cost-push’ inflation, that is, the cost of making a product keeps going up, and therefore the retail price must also rise in order to maintain a profit.
Of course the Fed’s easy money policy helps to fuel higher prices as well.
12 posted on
05/30/2014 7:14:00 PM PDT by
Paulie
(Buy local, bank local, exert your influence locally; the left will fold like a cheap suit.)
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