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Energy costs push up US wholesale prices 1.8 percent (inflation)

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posted on Dec, 15 2009 @ 03:06 PM

WASHINGTON — Surging energy costs lifted wholesale prices 1.8 percent in November, government data showed Tuesday, highlighting the volatility of inflation in recent months. The Labor Department's producer price index (PPI) was driven by a 6.9-percent jump in finished energy prices including a 14.2-percent rise in gasoline costs. Food prices rose a sharp 0.5 percent in the month. Excluding food and energy, the so-called core PPI was up 0.5 percent. Analysts had expected a 0.8 percent rise in the headline PPI and a 0.2-percent increase in the core index. The rise in prices comes amid ongoing fears about inflation as well as deflation.

So are all of our fears about to be realized? That is quite a jump for one month. We all know inflation has to come...but how bad will it be? There are no tax increases and the deficits are EXPLODING.

We are in trouble. The recession is over my ass. Enjoy this Christmas. Who knows how many good ones are left.

[edit on 15-12-2009 by David9176]

posted on Dec, 15 2009 @ 03:29 PM
It's coming, I don't know when, but with the amount of money they are spending it has no choice but to come the question is how big of a wave is it going to be?

The problem is the idiots we have up in DC will keep trying to spend out way out of an inflationary spiral.

posted on Dec, 15 2009 @ 03:36 PM
reply to post by Hastobemoretolife

Many companies have either froze their pay or cut it for their employees which means salaries will not keep up with inflation. We'll know how worried we should be when interests rates go up...which they most likely will very soon.

That will also stifle any recovery as it will be harder to get loans which will hurt the housing market which is still in big trouble.

It's a mess and I hope it gets better. I don't see it happening though.

Hope everyone has a good Christmas this year. Looks like we will have to pay the piper next year.

posted on Dec, 15 2009 @ 03:44 PM
reply to post by David9176

Well it does seem one area of the economy has risen.

The government wages across the board have gone to new record levels.

Oh how the mighty will fall.

posted on Dec, 15 2009 @ 03:46 PM
reply to post by David9176

It will get better it just might take a really long time. On another forum I look at there are a few companies that are laying off employees by the truck load and outsources support because A) the economy and B) it's getting to cost to much to do business here, especially with this admin throwing around the notion of "tax hikes" on a whim.

posted on Dec, 15 2009 @ 03:51 PM
reply to post by Hastobemoretolife

especially with this admin throwing around the notion of "tax hikes" on a whim.

Yeah...but it's going to come. It has too. Next year is going to be a bad year. They propped up the economy and in return will make our fall worse.

posted on Dec, 15 2009 @ 08:00 PM
Its not inflation, its "increased consumer spending' thats a good sign, means the economy is growing.

Where are we going and am I in a handbasket?
Why do I hear fiddles?

posted on Dec, 15 2009 @ 09:17 PM

Originally posted by Hastobemoretolife
reply to post by David9176

It will get better it just might take a really long time.

About a generation or two. That's how long Japan, Korea and Spain fully achieved first world status from developing.

posted on Dec, 15 2009 @ 09:33 PM
Many experts are already predicting US going into hyperinflation, is warnings that when this happen is not way the government or the fed will be able to stop the runaway train.

According to John Williams, of, the United States is on a trajectory toward runaway “hyperinflation” which it would not be able to contain.

As he sees it the U.S. may, within a decade or less, find itself buried under a worthless currency akin to Zimbabwe today or the Depression-era Weimar Republic.

The claim that America will soon see its dollar driven into the sand the way the Zimbabwe dollar or German mark once were is a bit extraordinary, but it does highlight an important point. The U.S. is undermining its own financial foundations through continuing its “loose money” policies.

Some nations, Japan in particular, have been able to survive and prosper despite having virtually zero interest on central bank loans. However, Japan also keeps tight control of its money supply, it does not organize multibillion dollar industry bailouts, and it exports more than it imports. The U.S. and Japan may share common zero interest rates, but that is where the economic similarities end.

On December 7 Federal Reserve chairman Ben Bernanke stood by his on-going decision to keep U.S. interest rates at historic lows. Investors had actually seemed hopeful that the Fed would opt to raise rates, if only slightly, as a sign that the economy was getting stronger and there was no more need for easy money. After his statement to the contrary investors went into a day long tailspin.

posted on Dec, 16 2009 @ 12:24 AM
reply to post by David9176


Energy costs have increased due to the decline of the USD compared to other currencies. The result is commodities increase in price, like oil, breads, corn, milk, energy etc.. and also Golds and so forth.


Inflation is when the money supply is directly inundated within the economy, the consumer with a massive amount of money through supply and demand drive prices through the roof, devaluing the purchasing power.


Deflation. Because the money supply is contracting at the consumer level, and prices are still rising it's safe to assume we are seeing both money supply contract and the value of those dollars decline .. some would argue we are seeing Inflation, and we are seeing Prices inflate, but economically looking at the whole, we are seeing DEFLATION. Deflation usually dictates the health of an economy, any economy seeing Deflation is not a healthy economy by anymeans.. in fact, the last Deflation led recession was the Great Depression.

Germany post WWI was Inflation .. thus we hear stories of people with wheelbarrows full of cash for a loaf of bread .. now, I don't know about any of you guys, but I have not seen a massive influx of cash lately.. and prices are going up anyways.

posted on Dec, 16 2009 @ 07:27 AM
reply to post by Rockpuck

Yes, the markets has been inundated with money, trillions of dollars, but that money is been kept from doing what it will do once is released into the economy, it will cause inflation, with the state of the economy right now, with the growing unemployment, politricks and agendas the flow of cash has been held, that is why banks are no lending and people can not get loans.

But that is no going to last for ever, banks are greedy, we live in an economy of consumerism, without money is not economic grow I see the inflation starting to hit us very soon . . . a littler bit at a time and then down the hill we will go, things are going to get worst that the recession has done so far.

posted on Dec, 16 2009 @ 08:41 AM
Imagine what is going to happen when carbon trading is introduced. Remember a while back when there was a food shortage in many developing nations because of all the farm land being used for producing bio fuel? I have to wonder if this new green scheme is intended to produce similar results but on a larger scale. NWO population reduction plans? This is an article I was reading earlier today that got me thinking about this.

Protest Erupts In Indian Parliament Over Inflation

Indian lawmakers walked out of parliament on Wednesday protesting against inflation, as the opposition piled up pressure on the government to curb rising prices and threatened to carry out street protests.

India's food inflation was at 16.7 percent in November as the worst dry spell in nearly four decades and annual floods in some states slashed farm output.

[edit on 16-12-2009 by 4ortunate1]

posted on Dec, 16 2009 @ 02:55 PM
Hello from England. This global financial catastrophe has given me the impetus to learn some basic survival. It has the potential to reach a point where food will become incredibly expensive and scarce. Go and buy a book about wild food, it's suprising how much free food is out there. Its comforting having the knowledge that if it all does go tits up, i can get food for free from hedgerows and woods.

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