For the past three and half years, the
folks at the Federal Reserve have been busy printing money in a desperate
effort to stave off the foreclosure crisis. As a result, the costs of lending money
are at record lows.
In the meantime, the price for gold has
held its own at record levels and is, again, on the increase over
the past two weeks. The indication being, that confidence in the
dollar is, again, on a downward trend.
To make matters worse, commodities
traded in dollar bills, such as fuel and food, are costing
more. You cannot inflate the existence of the dollar bill without
increasing the costs of fuel and food or anything that is traded "on the
dollar." This is why the rising costs of fuel and food are not counted in
the monthly or annual inflation reports -- the government does not want you to know the ugly truth as relates to the fact of inflation.
Point of post: while the inflation of the supply of dollar bills is not the biggest problem facing the Administration, is certainly is an added negative influence on the rising cost of
fuel. Obama has bet that the increased supply of dollars will effect the mortgage crisis before it kicks him in the the rear as relates to fuel and food prices. And, it is beginning to look like that bet did not pay off.
Update: I actually wrote this yesterday, but did not post it until this morning, or I would have included reference to the Peggy Noonan article dealing with the various problematic issues of an Obama/Forrest Gump [Noonan's words] approach to the current economic crisis. See the article here.
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