A Question
How is it possible that the regions of the world with strong currencies -- like Europe, U.K., Australia, and Canada -- are having inflation problems. And yet at the same time, the nation having a record low currency -- i.e., the United States and our Dollar -- doesn’t seem to either inflationary pressures (At least according to official CPI data).
Oh wait, here's an answer in the very next post:
"The U.S. economy soared last summer, growing at a rate much stronger than earlier estimated, but the earnings of companies were flat, the government reported Thursday.
"Gross domestic product rose at a 4.9% annual rate July through September, the fastest quarterly pace since 7.5% in third-quarter 2003, the Commerce Department said...."
Let's begin with what we know about Q3 prices: They saw significant increases -- yet the price index deflator was a 9 year record low of 0.9%. Rex Nutting observed: "Because of the way in the price index is constructed, it likely understates real-world inflation, and thus overstates real growth.
And to think our greatest foreign exports are now financial securities, which (used to) rely upon a level of transparency and honesty to maintain their value.
I wonder what the future holds?
Update: Someone forgot to tell the shoppers at Sears that the economy was soaring.
