Thursday, April 22, 2010

Inflationary Depression

In February 2008, Ron Paul described how the economy was moving in to an "inflationary depression". The show's host said it was the first time she had heard that term.

Prices of things we need such as food and energy are rising while the economy is stagnating at low levels. The inflationary depression has arrived.

Wholesale prices rise in March as food costs jump
WASHINGTON (AP) -- Wholesale prices rose more than expected last month as food prices surged by the most in 26 years. But excluding food and energy, prices were nearly flat.
Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida's tomato and other vegetable crops at the beginning of this year.

Gasoline prices rose 2.1 percent, the department said, the fifth rise in six months.