*if unemployment rises and prices rise and housing prices stabilize (ha ha, nice try) and oil, gas, food and general goods keep rising in price, how does this help? Apparently, economists have worried about Deflation (house underwater). Well I say, deflation is good when workers, who pay for goods and services, have no job and no money to pay any increase, however slight. And not for nothing but, I have always believed that it is these price increases that are the root of most of our present economic situation. Wages have not kept up with inflation but prices have gone sky high. Imagine graduating from $200,000 worth of college only to find that you will need to spend the rest of your life living in your parents basement, or attic, in order to survive. What a country. See? Economists are the real ijiots here, along with the smartest guys in the room at AIG.
February Consumer Prices in U.S. Increase More Than Forecast
By Bob Willis
March 18 (Bloomberg) -- The cost of living in the U.S. rose more than forecast in February, led by gains in fuel, clothing and automobile prices.
The consumer price index rose 0.4 percent after a 0.3 percent increase in January, Labor Department figures showed today in Washington. Excluding food and fuel, the so-called core rate climbed 0.2 percent for a second month.
The increase may ease concern among some Fed policy makers, meeting today, that the deceleration in prices may give way to deflation, or a prolonged drop that hurts profits and makes it harder to repay debt. Still, Chairman Ben S. Bernanke and his colleagues may announce new initiatives to prevent a moderation in inflation from turning into a more lethal drop in prices.
``The collapse in energy prices and decline in home values and stock prices has not dragged down consumer goods prices,'' Chris Rupkey, chief financial economist at Bank of Tokyo- Mitsubishi UFJ Ltd. in New York, said before the report. ``We may have dodged a bullet.'' more...
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