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Rising oil prices risk a deflationary spiral in the U.S., not an inflationary spiral, Cullen...

Rising oil prices risk a deflationary spiral in the U.S., not an inflationary spiral, Cullen Roche writes. Oil price increases are cost-push inflation, he explains, and for an economy still mired in a balance sheet recession, only gives the appearance of inflation in (highly visible) gas prices while creating deflationary trends in most (less visible) other assets.
Comments (6)
  • Leftfield
    , contributor
    Comments (3756) | Send Message
     
    Okay, call it stagflation. Whatever pundits call it, the have-nots are becoming more so, the elite haves are gaining more than ever and the corrupt extremes their parasitism has reached is causing turmoil and rebellion by the most vulnerable of the afflicted.
    23 Feb 2011, 10:48 AM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    that is a ridiculous statement. with rising oil prices comes rising shipping costs (lumber, consumer goods, food). with rising oil prices plastics (which are in everything) will rise along with it. Cullen must have a big position in oil.
    23 Feb 2011, 10:50 AM Reply Like
  • wyostocks
    , contributor
    Comments (7622) | Send Message
     
    Bozerdog hit it.
    And the companies hit by higher costs will not pass them along?
    And when we pay higher prices for the same goods, this will only be the "appearance of inflation" not the real thing. Wow, I'll feel much better.
    23 Feb 2011, 11:00 AM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    And the indoctrination continues......Repeat after me, "Ever higher prices on everything contribute to deflation."
    Apparently, even inflation causes deflation.
    23 Feb 2011, 11:00 AM Reply Like
  • Bozerdog
    , contributor
    Comments (464) | Send Message
     
    I repeated it 5 times and almost started to believe it:)
    23 Feb 2011, 11:02 AM Reply Like
  • apberusdisvet
    , contributor
    Comments (2860) | Send Message
     
    The bottom line is that no matter inflation, deflation or the better all-encompassing term of "monetary insanity", we are all so pathetically screwed.
    23 Feb 2011, 11:27 AM Reply Like
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