Oil is also rising in price as we know.
Governments are trying to figure out how to guide their recession and debt entrenched economies through a rising price in commodities.
In the USA we are guided by the Federal Reserve. Bernanke is the point man and he is claiming that our course will maintain a low 2% inflation rise over the next year.
I don't get it.
CS Monitor: Bernanke: Don't blame Federal Reserve for record-high food prices
He said the Fed aims to hold inflation – the annual rise in prices in that consumer basket – at about 2 percent. Why not a target of zero inflation? Bernanke described 2 percent as "consistent with international standards of where inflation should be to appropriately trade off the benefits of low inflation against the risks of being too close to a deflationary zone."
Export prices of major grains are up 70 percent in the past year, the UN Food and Agriculture Organization said Thursday.
One other risk factor: High levels of government debt in many advanced nations may tempt officials to view moderate inflation as a backdoor way of reducing the debt burden.
3 comments:
An Inflation rate that excludes food and energy. What a farce , it's like an unemployment rate that excludes the unemployed. G. Orwell must be laugh somewhere. His world of lying liars has arrived. War is Peace and were still fighting Eastasia!
I figured it out. Bernanke job is to stand there and tell us its okay while we are dying.
Yea, just like Greenspan was to stand there and tell us there was no housing bubble. These guys are nothing more then shills placed there for the the PR effect. The robbery behind the scenes goes on.
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