Today's news shows strong signs of inflation

[Wiregrass Willie]

"...Average hourly earnings rose to $17.63 in November, a 0.5 percent increase from the prior month. That marked the biggest monthly gain since June. The only other time the monthly gain was higher was in October 2005. Economists were expecting a more moderate rise of 0.3 percent. Over the past 12 months, wages grew by 3.8 percent..."

http://biz.yahoo.com/ap/071207/economy.html

That means that the rate of income has risen at the rate of 6% a year. The Fed meets next week. Will they raise rates to protect the consumer against inflation -- or will they cut rates to protect the Banks from losing money with their subprime fiasco ?

Do you really have to ask ?

[Jim__]

1. Wages are rising. Time to worry about inflation.

If we can just keep wages down, everything will be fine. :sarcasm:

[PghTiny]

2. Probably a rate cut

The Fed seems more concerned about the bankers than Joe Sixpack. They want to keep the banks from shutting their doors with the housing crisis, and if they have to destroy the currency to do so, that is what they will do.

[Lasher]

3. When average workers' wages go up it is always cause for concern about inflation

But when senior executives' compensation skyrockets it is just the benevolent free market working to enrich us all. Now I wonder why that is?

[lonestarnot]

5. OMG! Pic a good one!

:applause:

[Lasher]

6. Thank you.

We're having a little fun with it over here:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x3801807

[whoneedstickets]

4. Welcom to the 1970's, high oil prices and inflation in a stagnant economy...

..stagflation all over again.

[KharmaTrain]

8. Don't Forget The War Debts

A major factor driving the 70's inflation...next to oil prices doubling and then doubling again was the "Vietnam hangover"...billions that had been borrowed for that war that fueled the inflation that went into hyperdrive when oil prices rose.

The debts on Iraq still haven't been felt on this economy, but it's about to be. It's led to the weakening of the dollar (another sign of inflation) and has driven up the national debt that we're just lucky to pay the interest on the national debt...and that's before this regime attempts to bail out the lenders and others before they're evicted in Jan '09.

[Wiregrass Willie]

9. But in the 1970s they didn't lie about inflation

The official rate of inflation was released a few days ago by the BLS. It's about 2.5%. The true rate is closer to 6% or 8%.

Here is a site where they keep up with it.

http://www.shadowstats.com/cgi-bin/sgs/data

At least in the 1970s they reported inflation accurately.

[sam sarrha]

7. just go to the grocery store.. $2 for an apple, eggs went up 50% in a couple months