2007 Highest Inflation Rate in 26 Years

2007 Highest Inflation Rate in 26 Years

www.rawstory.com

Wholesale inflation shot up in 2007 by the largest amount in 26 years even though falling gasoline costs allowed price pressures to moderate in December.

The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.

The economy skidded to a virtual standstill in the final three months of last year, raising fears the country could fall into recession..

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End article:

...unable to withstand the multiple blows from a prolonged downturn in housing, a severe credit crisis and soaring energy costs.

Already, unemployment is rising. The jobless rate jumped to 5 percent in December, up from 4.7 percent in November. That was the biggest one-month surge in unemployment since October 2001 in the wake of the 2001 terrorist attacks.

In a word, the perfect mess. Inflation, recession, skyrocketing food and energy costs.

Overheard in the White House: "Would you like another war with that, sir?"

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reply to post by gottago


The food end of things is something I haven't been seeing get as much attention as the fuel...I have noticed food prices steadily rising almost every other month in my area. Particularly breads and dairy products. We are getting pinched from every angle in these times IMHO.

Originally posted by gottago
2007 Highest Inflation Rate in 26 Years
Overheard in the White House: "Would you like another war with that, sir?"

my sentiments exactly
thanks Bush for ruining my life and my kids lives.
I would use some other 4-letter words here
but I'd get banned so ......

A phrase from the Pirates of the Caribbean movie comes to mind right now:

"You are undoubtedly the worst Pirate .... errrr, ummm .... I mean
president I have ever seen"

I would simply point out that Inflation is not some act of Nature. It is done by a Private Banking Cartel known as the Federal Reserve. The Founding Fathers warned us about turning over the ability to print our money to Private Banks. They said we would wake up one day homeless and destitute on the continent our fathers conquered. So we are all paying for being poor Historians. Doomed to repeat the errors of the Past.

reply to post by DimensionalDetective


Quite true, and it the result of a massive concentration of food production by a few staggeringly large international corporations, who have squeezed out minor players and killed off the independent family farm, paralleling the same unholy concentration (read "power") in the media.

Even seed production is now controlled by Monsanto and a few other major players, and the entire OGM scam is simply so that they can patent the seeds and not allow farmers to retain independent seed stocks. No different than Microsoft's software licenses--it's not your software, even though you bought it, it's licensed to you.

Now that they can act like cartels, well, they act like cartels. We're being squeezed by the greed of all these enormous corporations in search of power and profit, and it is simply disgusting how our antitrust laws have been perverted and ignored so that this could come to pass.

The US is not a nation but rather an association of corporate interests. The will of the people and the concept of the commonweal have been relegated to the dustbin.

I pointed in many threads that US have problem with inflation. That's why $ is weak, and the main reason why prices of oil, gold, metals, various commodities are higher and higher in world markets as $ is used for payment.

I read somewhere that real inflation was 16% [and some claim even more]. And it will be even worse as FED will cut interest rates...


Greenspan Will Join Paulson as an Adviser

Former Federal Reserve Chairman Alan Greenspan, whom some blame for fueling a housing bubble, is signing on as an adviser to hedge-fund firm Paulson & Co., which has profited handsomely from the collapse of that bubble.

Peace.

[edit on 16-1-2008 by Vojvoda]

"even though falling gasoline costs allowed price pressures to moderate in December"

Falling gasoline prices? Maybe for a few days, but I still see gas at record levels. Oil is still trading in the 90's. I fail to see how you could classify either of those two situations as "falling gasoline costs".

It is insane what our economy is looking like. How many days before these recession reports came out was it that Bush went on record telling us that our economy was strong and stable? The stock market is tanking, people are foreclosing in record numbers, food is going up, gas is going up, and the middle class is being destroyed.

I try not to read these threads because they depress the crap out of me.

Originally posted by Karlhungis
"even though falling gasoline costs allowed price pressures to moderate in December"

Falling gasoline prices? Maybe for a few days, but I still see gas at record levels. Oil is still trading in the 90's. I fail to see how you could classify either of those two situations as "falling gasoline costs".

It is insane what our economy is looking like. How many days before these recession reports came out was it that Bush went on record telling us that our economy was strong and stable? The stock market is tanking, people are foreclosing in record numbers, food is going up, gas is going up, and the middle class is being destroyed.

I try not to read these threads because they depress the crap out of me.

It's too late. If recession was allowed in 2001 [I think], US economy will be ok today. But no, recession was delayed, and now process is out of control [inflation]. FED will further cut interest rates, and that will just fuel inflation, but that's the way for saving commercial banks [ironically who own FED] and various funds. The victim will be middle class [as always in inflation].

reply to post by Vojvoda


Very true; the Fed, the gov't and Wall Street decided in the 80s to short-circuit the normal business cycle and bubble their way to "prosperity" for an entire generation. Well there aren't any more bubbles left to inflate to keep this game going and the inevitable reckoning is at hand. They will doubtless save themselves, as they've always done in these situations--those "liquidity infusions"--but it will be the taxpayer and consumer who pays.

Originally posted by gottago
reply to post by Vojvoda

 

Very true; the Fed, the gov't and Wall Street decided in the 80s to short-circuit the normal business cycle and bubble their way to "prosperity" for an entire generation. Well there aren't any more bubbles left to inflate to keep this game going and the inevitable reckoning is at hand. They will doubtless save themselves, as they've always done in these situations--those "liquidity infusions"--but it will be the taxpayer and consumer who pays.

Yes, yes, exactly. Finally somebody understands.
In Clinton era bubbles were created, and when Bush rose to power, recession was on the way. But no, it was delayed, and even more bubbles were created [like housing]. And new FED Chairman, Bernanke is just idiot who thinks that with 'infinite' liquidity infusion recession can be prolonged forever, but the price of that idiocy is high inflation. Now it's too late as any increase of interest rates will cause 1929, so they decided to weaken more and more $, and result is inflation. Process is out of control now.

Originally posted by Vojvoda
And new FED Chairman, Bernanke is just idiot who thinks that with 'infinite' liquidity infusion recession can be prolonged forever, but the price of that idiocy is high inflation. Now it's too late as any increase of interest rates will cause 1929, so they decided to weaken more and more $, and result is inflation. Process is out of control now.

It is also rather clear that inflation is being fueled by monopolist end-game scenarios--in plain English, desperate money grabs--particularly in the food and energy sectors. The concentration of market share is with so few players, who are also the largest corporations in the world, and they've decided now is the time to squeeze and squeeze hard.

Pocket the obscene profits before it all tanks, and artificially ratchet up price levels to comfortably survive the "correction."

I

Inflation for Children

The mom says: Wipe your shoes kids...I don't want you bringing more money in the house again!

I thought this was a little gem.