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View Diary: BREAKING: Fed Launches $40-Billion-a-Month QE3 Stimulus (129 comments)

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  •  We do see widespread inflation! (2+ / 0-)
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    marianevans, erush1345

    Food and gasoline are the big ones.

    Have you been to the grocery store lately?

    The bigger manufacturers of food and other groceries are attempting to hide the inflation by cutting quantities in packaging. But you are still seeing steadily rising prices.

    More expensive gas pushes up US wholesale prices

    A sharp rise in gasoline costs drove up wholesale prices last month by the most in more than three years. But outside energy and food, price gains were mild.

    The producer price index, which measures price changes before they reach the consumer, jumped 1.7 percent in August, the Labor Department said Thursday. The increase was mostly because gas prices soared 13.6 percent, the biggest gain in three years.

    Food prices rose 0.9 percent, driven up by steep increases in the cost of eggs and dairy products.

    •  No, we don't see widespread inflation (0+ / 0-)

      There is a reason why those are called "volatile". Because they, you know, fluctuate a lot.

      And if you think eggs and dairy have nothing to do with the massive drought and the increase in corn prices you are just silly.

      And when gas prices were falling rapidly earlier this summer while the money supply was still rising that proved what, exactly?

      You either don't understand economics or you are a troll. Either way, stop arguing with me as you are making a fool of yourself.

      Basic point: qualitative easing will not add to inflation. You produce no evidence whatsoever to contradict that point.

      Romney economics: Feed our seed corn to the fattest pigs and trust them to poop out jobs.

      by blue aardvark on Thu Sep 13, 2012 at 11:38:20 AM PDT

      [ Parent ]

      •  It will raise the price of oil (1+ / 0-)
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        That's what I said, and that is what will happen.

        And things based on the price of oil will also likely rise in price.

        Money Week - QE favours the rich

        Oil, stocks and gold all went up yesterday in anticipation.
        The Fed prints and prices rise for the people the Fed action pretends to help. The first round of QE drove food prices up 20% and oil up 59%. Then, QE2 pushed up oil another 30%, while food rose 15%.
        •  You've said quite a bit more than oil (0+ / 0-)

          And the price of oil goes up as the economy improves because people use energy to do all those economic activities.

          So, any action which improves the economy will tend to raise the price of oil.

          Romney economics: Feed our seed corn to the fattest pigs and trust them to poop out jobs.

          by blue aardvark on Thu Sep 13, 2012 at 11:47:55 AM PDT

          [ Parent ]

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