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U.S. companies shouldn't worry about inflation if they're planning on expanding their business,...
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Thursday, February 24, 2011, 5:05 PM ETU.S. companies shouldn't worry about inflation if they're planning on expanding their business, Obama says at the first meeting of his Council on Jobs and Competitiveness. "We're not seeing a broad-based inflation trend." At the meeting, Geithner says substantial world oil reserves should help with any disruptions to oil supplies.
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What credibility? Community organizing assumes a community that you can shake down. We're losing 'community' day by day.
Let's assume for the moment my whole business was about inflation, that the O claims is not there. It is for the inputs to my manufacturing operation - electricity, fuel, raw materials. It is for any buys from overseas, more hedging, forwards etc. The only place it's not is in US commercial real estate that I wouldn't buy anyway b/c more often than not, I can restructure existing plant to optimize space and add capacity that way.
Businesses require a market and stable operating environments in which to expand, neither of which O's policies have engendered - an uncertain tax system, a weakening dollar (continued from the W idiot), and the new health care law (actually a tax bill) which is dramatically increasing cost for businesses. How do any of these things support expanding businesses?
seekingalpha.com/curre...
"We believe that that commodity price inflation has primarily been driven by demand coupled with (in some cases) supply‐side shocks in 2010. Interestingly, United States “core” inflation will not move materially until the US housing market turns, which we believe could be up to 3 years away. The reason for this phenomenon is that housing (excluding the energy component) comprises roughly 37% of the headline CPI calculation and 49% of the core CPI calculation. The rest is just details, especially when food and energy are removed. Unfortunately, if you eat or drive every day, you are already feeling the impact of inflation."