Thursday, July 15, 2010

Where's the Inflation Part II: Wholesale prices drop 0.5 percent in June

Wholesale prices seemed to have fallen substantially for June.
Excerpt: "Wholesale prices fell for a third consecutive month as another drop in energy costs and the biggest plunge in food costs in eight years banished inflation in June."

Story here.

Remember this chart:
It's hard to see any relationship between these excess reserve balance levels and "inflation". I can't see it. It will soon be two years that these balances have been elevated to these extreme, unprecedented levels.


googleheim said...

Ok - here it is :

if creative destructionist deficit terrorists think that tax revenues pay for all liabilities, then let them keep all their due taxes in the exchange that they are cut off from ALL deficit spending benefits themselves.

That would mean that if they are in the energy industry - no more subsidies. In the hospital or doctor industry - no more subsidies or acceptance of Medicaid/Medicare which is deficit spending brought to them by their patients.

Only doctors who vote for deficit spending will get the benefits and must be regulated and taxed !

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