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It’s Not Inflation

December 9, 2010

WASHINGTON — Despite weak demand in the U.S. and Europe, oil prices climbed this week to near $90 a barrel and gasoline prices have passed $3 a gallon on the West Coast and parts of the Northeast.

Why? If demand is down and supplies are plentiful — and they are — why would prices be going up?

Because Wall Street speculators are driving up oil and gasoline prices again — just in time to dampen holiday cheer.

Paid $2.99 for premium – no ethanol – fuel this week.

This not all bad. The last time this happened the Hummer and a lot of other monster trucks got killed and alternative fuel cars got a boost. Just in time for the 2012 flood of new electrics.

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8 comments

  1. It’s a Depression..


  2. Prices go down in depressions.


  3. This is why we don’t include fuel in the calculation of the basic inflation rate.


  4. food too… still.. there are products and services out there that are WAY over the top..

    whatever they call it.. today US economy is tanked..


  5. The value of the Dollar is down today as well. Argentina here we come..


    • …because the repugs looked like they were going to make a massive addition to the deficit w/o any help to the economy.

      Not so fast bozos.


  6. say what? happened to my post???? huh..


  7. quote
    Industries Today’s Change 5 Day 1 Month 1 Year Market Cap
    Footwear…………….+0.88% +0.32% +7.18% +41.77% 110.13bn
    Brewers………………+0.76% -0.12% +0.39% +8.61% 424.90bn
    Consumer Electronics+0.64% -2.25% +4.96% +8.45% 162.80bn
    Home Construction..+0.59% +1.11% -1.86% +4.95% 74.14bn
    Drble Household Products+0.53% +2.36% +4.05% +19.64% 153.56bn
    Nondrable Househld Prcts+0.49% +1.19% -1.80% +2.35% 269.29bn
    Recreational Products……+0.48% +3.91% +4.85% +40.03% 53.97bn
    Clothing & Accessories….+0.46% +0.78% +7.78% +49.64% 472.08bn
    Furnishings…………………..+0.44% +1.93% +8.53% +29.22% 41.28bn
    Toys…………………………….+0.35% +0.08%.+4.22% +23.14% 112.29bn
    Auto Parts…………………….+0.13% -0.09% +7.23% +55.61% 382.90bn

    http://markets.ft.com/markets/sectorsAndIndustries/sectors.asp?s=600576&ss=WSODIssue&encodedName=Consumer-Goods

    Brent Crude OilAs of Dec 10 2010 21:26 GMT. Year change +25.70%
    WTI Crude OilAs of Dec 10 2010 22:14 GMT. Year change +24.39%
    RBOB GasolineAs of Dec 10 2010 22:14 GMT. Year change +26.10%

    CornAs of Dec 10 2010 19:14 GMT. Year change +48.67%
    WheatAs of Dec 10 2010 19:10 GMT. Year change +44.01%
    SoybeansAs of Dec 10 2010 19:37 GMT. Year change +23.46%
    Soybean MealAs of Dec 10 2010 19:14 GMT. Year change +7.77%
    CocoaAs of Dec 10 2010 16:49 GMT. Year change -14.27%
    Coffee (Robusta)As of Dec 10 2010 17:29 GMT. Year change +39.15%
    Coffee (Arabica)As of Dec 09 2010 17:34 GMT. Year change +43.17%
    White SugarAs of Dec 10 2010 17:29 GMT. Year change +16.54%
    CottonAs of Dec 10 2010 19:29 GMT. Year change +85.16%
    Orange JuiceAs of Dec 10 2010 18:59 GMT Year change +28.09%
    CattleAs of Dec 10 2010 19:45 GMT. Year change +27.53%
    Feeder CattleAs of Dec 10 2010 19:53 GMT. Year change +29.66%
    Frozen Pork BelliesAs of Dec 10 2010 18:38 GMT. Year change +23.53%
    Lean HogsAs of Dec 10 2010 19:36 GMT. Year change +8.83%
    LumberAs of Dec 10 2010 19:53 GMT. Year change +24.36%

    http://markets.ft.com/markets/commodities.asp
    ==================

    I am going to try to post to this issue again.. Since the implementation of “substitution, hedonic adjustment and geometric weighting to make GDP look better, we haven’t had an accurate picture of CPI since the 80’s. Each decade they have added more ways to make CPI look lower to keep wage inflation down, GDP positive and the public fooled about how bad things are.

    There are many in Congress that still believe we can spend our way out of this like we did in past recessions. BEN keeps his foot to the printing press while the only thing spending does is delay the collapse. As the President’s debt commission reported, “we couldn’t grow out of this with double digit growth for decades.” It will take YEARS fellas.. YEARS!

    Commodity prices will not be determined by our meager 300 million but by the 2.5 billion middle class and rapidly growing consumers globally. We can be in the midst of the worst depression and we will pay what that global consumer base determines we will pay. The biggest threat is FOOD!!!

    Wake UP!



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