BECKLEY— Today’s news is telling – inflation, debt & spending!
The Labor Department said the seasonally adjusted index for prices paid at the farm and factory gate jumped 1.8 percent, the largest gain in three months, following a 0.3 percent rise in October.
Analysts polled by Reuters had expected producer prices to increase by 0.8 percent last month. Compared with the same period last year, producer prices surged 2.4 percent in November, posting their first gain in a year and the largest rise since October 2008.
Markets had expected producer prices to increase 1.6 percent versus a year ago.
—CNBC.com
As American Missive has been writing for some time now here comes big government spending inflation. Pile onto the big time inflation continued big time spending and you get, as Moody’s is coldly pointing out, trouble.
Sovereign debt risk is rising globally, particularly in the United States and United Kingdom, which must outline plans to manage public debt or face ratings deterioration as soon as 2011, Moody’s global head of sovereign ratings said on Monday.
“2010 is probably going to be a tumultuous year for sovereign risk,” Pierre Cailleteau, Moody’s global head of sovereign ratings, said in a phone interview from London. “Long-term interest rates will rise globally, which will reveal the real costs of the financial and economic crisis.”
—Reuters.com
Meanwhile the talk of continued health care spending bill goes contrary to what many American’s are concerned about. According to a recent study by an independent group their are real issues with all the spending…
The bipartisan group includes former lawmakers and directors of both the Congressional Budget Office and the White House budget office.
“A hard landing — where higher deficits and debt cause investors to lose confidence in the U.S. economy and rising interest rates choke off the economic growth — is a real possibility,” said the group’s report.
Economist Douglas Holtz-Eakin, a former director of the Congressional Budget Office and adviser to 2008 GOP nominee Sen. John McCain of Arizona, warned that global markets could eventually lose confidence in the U.S. government’s capacity to bear its rapidly growing debt. Such a sharp reaction could lead to a decline in the value of the dollar, higher interest rates and a resulting recession.
—Associated Press
And yet such things like the Health Care Spending Bill are still being discussed and Obama is apt to bring up another $500 billion in stimulus plans.
TennesseePaul
Stephen VanNuys
Brooklyn Daniel
The Freedom Thinker
“Big government inflation” has been here under cover for a while. If you pay attention to what you are buying you will notice that a large portion of the products and service you used to purchase have shrunk, but the price has remained the same. An example: I was in a Medium-Food restaurant just this weekend. I ordered the small fountain drink with my meal. I received the small cup. Unfortunately the company had yet to replace the example cups for all the sizes. All of them are now several ounces smaller, yet the prices are the same.
Indeed, TP. It makes you wonder how they measure inflation. I guess a gallon of milk is a gallon of milk, unless they redefine a “gallon.” Anyway – they can’t keep shrinking things forever. People are noticing. We need to do a missive on this because I bet people the country over are quietly noticing this.
Obamaflation.
Inflation is indeed quietly infiltrating the system and that is the last thing that Obama Hood and his merry band want publicized.
It sure is time that some relevant examples are compiled and brought to the public’s attention. I have noticed that a number of companies who target the Christmas buying season have cut back on variety and number of their products – Hickory Farms, for instance, had what I regard as a pretty lame display and some of the outlets that I depend upon were offering very little in the way of inexpensive gifts.
[...] at the tail end of a severe recession wrought with excess capacity, we nonetheless are witnessing price increases year-over-year, rather than price [...]