One of the side effects of the overarching “price stability” mandate of the Fed, it turns out, is the fact that since its inception, food and pretty much all other commodity prices have, well, gone up non stop.
All of this, of course, is courtesy of the relentless loss of dollar purchasing power, shown below on a log scale. At this rate, the dollar will have negative purchasing power in under 10 years.
And, no, sorry exporting inflation to China (thank you 50 years of globalization and economic hitmen) to keep the price of everything in the core inflation bucket low ain’t gonna cut it anymore. Other countries don’t need US debt any more – they have enough of their own.
Submitted by Tyler Durden on 05/25/2011 15:09 -0400
Source: ZeroHedge