Holy Inflation Batman!

[WODIN]

http://money.cnn.com/2004/06/17/news/economy/ppi.reut/index.htm?cnn=yes

WASHINGTON (Reuters) - A bigger-than-expected rise in U.S. producer prices in May, the largest in 14 months, and falling jobless claims last week provided fresh evidence Thursday of strength in the world's largest economy.

Prices received by farms, factories and refiners shot up a hefty 0.8 percent last month, the biggest increase since March 2003, the Labor Department said.

 

[Longhorn85]

WODIN you somehow sifted through a lot of economic good news and found a little negativity that you can try to blame on Bush, while making no mention or acknowledgement of the good news.




James Carville would be proud of you.

 

[The Shadow]

*gets popcorn*

 

[WODIN]

WODIN you somehow sifted through a lot of economic good news and found a little negativity that you can try to blame on Bush, while making no mention or acknowledgement of the good news.




James Carville would be proud of you.

I don't care if he is proud or not. Mofo better have my check ready when I go by his office. LOL!!

What good news? Job displacement and underemployment? That good news? ( I got that jimmy himself )

 

[Steroid_Virgin]

Inflation is often a signal of increased economic activity.. a little inflation is good because everyone expects to get a raise each year, and we all know now that Keynes was wrong, wages are NOT flexible... As long as the money supply does not grow more than 1.5% over real GDP, the economy is in good shape.

Currently, inflationary worry is being caused by serge in output not seen in many many years.. We are in a boom economy right now.. you have more gainfully employeed people, and now have more dollars chasing the same number goods. When that happens, the CPI usually creeps up, and you get what we call inflation. I still think a lot of incease in CPI has been caused by the spike in energy prices, (oil ^$50), so I hope greenspan et al dont get over zealous with raising interest rates. In any case, inflation should not be too big an issue right now as monetary policy can still be quite effective being that interest rates are so low.. Anyway, yeah, all the fed has to do is start buying back some tbills, and increase the FF rate a quarter %.. That should be a strong enough signal to those who matter that the Fed will proactively keep inflation in check.