[Dems2008] Re: Falling dollar >> inflation (e.g. crude oil]

Wrong....and as you probably know, even the Fed now has abandoned its
former reliance on only "core" CPI (i.e., ex-food and energy).

In fact, any self-respecting economist will tell you (and consumers
know well) that the CPI grossly understates actual inflation.
Japanese steel companies, for example, and other just raised the
price of steel by a large amount.

--- In Dems2008@yahoogroups.com, "mmshlevi" <mmshlevi@...> wrote:
>
> Core inflation has remained at around 2% despite the rise in
crude price. The inflation fear mongers have all been wrong.
>
> The Fed has validated this because it has lowered interest in face
of
> rising oil prices. The Fed would not do this if there was inflation.
> Paul Volcker raised interest rates in a recession and inflation
period
> in '79, so don't think it isn't possible.
>
> Martin Levi
>
>
> --- In Dems2008@yahoogroups.com, Citation <citation502@> wrote:
> >
> >
> >
> > The chief near-term impact of a weak dollar is the
> inflation impact. The most-obvious recent example is the price of
> crude oil, now bordering on $100 bbl. Crude oil is priced in U.S.
> dollars worldwide, and it is not happenstance that the rapid descent
> of the dollar in the last year has coincided with crude oil running
> from the mid-$60s to near $100. The chart on the dollar is almost a
> perfect inversion of the chart on crude oil.
> >
> > Most who follow those markets will agree that perhaps $25-30 in
> the price of a barrel of crude is a direct result of the devaluation
> of the U.S.DOLLAR.
> >
> >

http://tinyurl.com/34oxv9
> >
> >
> >
> >
> >
> >
> > ---------------------------------
> > Never miss a thing. Make Yahoo your homepage.
> >
>

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