Tuesday, July 28, 2009

More Chips Join More House for the Same Number of Dollars

Courtesy of Minyanville, here's a link to a Salt Lake Tribune titled:

Your bag of chips got bigger but price stays the same.

(Ignore the ungrammatical mixing of the past tense and present tense; this is what passes for editing despite or perhaps because of "aids" such as Spellcheck and the like.)

Just in case you want to see examples of deflation at work: unit price declines in action.

This is being posted having spent a couple of hours touring a local, partly built-out housing development undergoing major price cuts.

If it's in the interest of the Government and the Fed (close to one and the same thing nowadays) to have interest rates stay low (and it is in their interest, I believe), then that means low inflation. Don't fight the Fed(s).

Copyright (C) Long Lake LLC 2009

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