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To: FromLori
Actually, it's not. When food and energy prices experience inflation, the lag takes about ten months to show up. With lean inventory levels of modern manufacturing, more like six months. Food and energy are leading indicators.

Not that they are to be ignored, but technically a sound argument can be made as to why they are not tied to the core rate of inflation. Obamma and the fed are just using this as political cover, hoping for some relief in six to ten months, and with QE2, that sure ain't gonna happen.

6 posted on 02/12/2011 7:43:33 AM PST by blackdog
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To: blackdog
When food and energy prices experience inflation, the lag takes about ten months to show up.

That's the crux of the issue: people understand the ramifications of QE2, but they are casting-about for reasons inflation hasn't shown up in the figures yet.

So they gravitate toward shyster outfits like shadowstats, that do yeoman's work spreading the "controversy" because it gets them subscriptions.

10 posted on 02/12/2011 8:11:57 AM PST by 1rudeboy
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