Chronicles Of Depression 2.0: #031

Wholesale prices soared in March

Inflation at the wholesale level soared in March at nearly triple the rate that had been expected as the costs of energy and food both climbed rapidly.

The Labor Department reported Tuesday that wholesale prices rose by 1.1 percent last month, the second largest increase in the past 33 years, exceeded only by a 2.6 percent rise last November. Analysts had been expecting a much more moderate 0.4 percent rise in wholesale prices for the month.

Emphasis added by me.

Remember: Those are wholesale prices.

By the time we get to buy at retail prices, they’re inflated even more.

I was in a supermarket yesterday.

I don’t tend to look at prices for things other than what I buy.

But yesterday I looked at other prices.

To say I couldn’t believe my eyes would be understatement.

And it will all get worse.

The inflation pressures are occurring at a time when the overall economy is slowing and many analysts believe may have toppled into a recession. That raises concerns that the country could be facing another bout of stagflation, the malady that last occurred in the 1970s when economic growth stagnated but inflation kept rising.

Such a development would put the Federal Reserve in a bind. The central bank has been cutting interest rates in an effort to combat the current slowdown. However, if inflation pressures keep rising, it might be forced to stop cutting interest rates for fear that it would make inflation worse.

We were all taught that nonsensical definition of inflation: Too much money chasing too few goods.

Camouflage for what should have been taught: price gouging.

(No? Then explain how Henry Ford could lower the price of his cars even though more people wanted them. The people who want to fuck up your mind and cripple your ability to think would have you believe inflation is a simple cause-and-effect thing in which outright human greed has no place.)

How will this round of “inflation” be justified as fewer people have the money to chase goods?

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