October 01, 2004

Wip Inflation Now

Bill Gross, Billionaire on Inflation: ``the con job perpetually foisted on the American public about the low level of inflation. “Inflation under control� – (ex food and energy of course) shout the carnival barkers. “The CORE is running at just under 2%,� the barkers shout with glee because a low CORE number tells us that we can continue to run monetary policy with negative real interest rates and fiscal policy with $400 billion dollar deficits. A low CORE number allows us to pretend that American productivity is the best in the world, that the dollar should be strong, and that the markets, by golly are going up. No matter that a gallon of gasoline is over 2 bucks or that a half gallon of milk will set you back $3.69; the CORE is under 2%. Still as Todd Heft, a 44-year-old salesman recently quoted in The Wall Street Journal said, “People have to buy groceries and drive to work. It’s not realistic to strip out food and gas prices.``

Posted by rusty at October 1, 2004 01:16 AM | TrackBack
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