The man who handles my money says most of the money managers are concerned with deflation at this time and they don't see inflation as being a threat until a couple of years down the line. The increases in oil are fueling the other commodity price rices and since all oil is priced in dollars, the decline of the dollar is causing the prices to go up.
What we are currently in seems to be more of a Jimmy Carter phenomena, when they coined the term "stagflation". Prices are rapidly rising while incomes remain stagnant. But hold on to your hat, because with the way Obama and the Democrats have spent our money we are in for inflation down the road like you've never seen. Like David says "Yet". And Powerabout is correct when he says that inflation is how governments reduce debt. The interest on our national debt is around 25% now. I think we are sending about 100 million a day to the Chinese. Yet what is our interest rate? Currently rates are low. Just imagine how much of our debt will only go to interest alone when the rates go up.
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