Food and Energy Prices in the U.S. Soar in March
Thursday, April 22nd, 2010
Inflation is rearing its ugly head in the United States as food and energy prices soared in March the most since 1984.
Wholesale prices rose by 0.7 percent for the month. Even when excluding food and fuel they still rose by 0.1 percent.
I've never liked that exclusion thing the Labor Department includes, as food and fuel are what the majority Americans want to know about as far as inflation goes, as the rest can be dropped as far as paying for other unnecessary products or services consumers can do without.
For business, one way they may attempt to combat this is through increased productivity. Just keep in mind when the term increased productivity is used, it refers to getting more out of existing employees, and not taking on any new ones.
Concerning the 0.1 percent inflation for the month outside of food and fuel, that was down because of falling prices in autos and appliances, which really doesn't mean much if you're not buying them, and can be left to wait unless it's an absolute necessity to acquire them.
Again, what this means is inflation is strong concerning the necessities, and no matter what the rest of the numbers do to correct that, it's going to be harder on Americans in everyday essentials, which is where the majority of their spending goes. So no matter how the government spins it, if this continues, it's going to be get more and more expensive going forward.
Food prices in March soared by 2.4 percent, the largest gains since January 1984 for a month. Vegetables and fish prices were among the price leaders as far as increased costs go.
The cost of energy surged by 0.7 percent in March, with gasoline prices rising by 2.1 percent.
Whatever way you cut it, this is bad news, and if it continues on as it is, we'll be in a lot of trouble as the consequences of the endless printing of paper money, stimulus plans and bailouts catch up with the American people, who will have to pay for it all through the hidden and insidious tax of inflation.
All of this because the Obama administration can't control spending and attempts to gain the favor of the economically clueless by throwing money at almost everything they can.
This is the basis of the Tea Party movement in America, which understands the extraordinary danger of what Obama and the Federal Reserve has brought upon the country.
Obviously this has been going on for years, but Obama has brought to levels through his reckless, socialist worldview where he believes he can redistribute the money of the productive to those who produce nothing and get away with it without consequences.
Inflation is one of those consequences, and this is just the beginning of what will ultimately become a disaster for Americans and others around the world who practice the same economics.
Just look at Greece which is insolvent from believing they can just spread the wealth and let others pay for it. That doesn't work because you eventually run out of people who are able or willing to continue on with that. This is where America is heading, and the outrageous spending and deficits need to be stopped and taken care of before it's too late, if it isn't already.
Article by Gary B
The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com
Tags: bailouts , inflation , tea party
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