A package of Oscar Mayer cold cuts. A pair of Nine West boots. A Whirlpool washing machine.Remember you heard it he first, when Bernanke, Krugman and other Keynesians were still talking deflation. Folks, this isn't going to just be price inflation, it could very well be a tsunami of price inflation.
By the fall, people will most likely be paying more for each of them, as rising prices hit most consumer goods, say retailers, food companies and manufacturers of consumer products.
Cotton prices are near their highest level in more than a decade, after adjusting for inflation, and leather and polyester costs are jumping as well. Copper recently hit its highest level in about 40 years, and iron ore, used for steel, is fetching extremely high prices. Prices for corn, sugar, wheat, beef, pork and coffee are soaring. Labor overseas is becoming more expensive, meanwhile, and so are the utility bills to keep a factory running.
Tuesday, February 15, 2011
NYT on the Coming Price Inflation
NYT writes:
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Basically it is over.
ReplyDeleteThe long bond has busted out blowing the 10 year moving average to hell.
It'll take QE 2 Infiniti to bring the 30 year rate down. They can't neglect to do that, doing the Paul Volcker to rates would toss what is left of the economy under the bus all while raising the interest on our debt by several trillion.
The dollar is done.
They can either re-value it and go to a short termed gold standard or they can call in the MPs and we can go through our economic Zimbabwe Katrina.
BTW, food prices were up 29% yoy.