http://www.dailypfennig.com/
"...Retail Sales for August were quite strong, and showed signs that the move was more than the Cash for Clunkers program, and Back to School buying... There are quite a few people/ economists/ analysts out there now jumping on the President's bandwagon that the recession is over based on this report... For those of you at home keeping score, Retail Sales for August printed at +2.7%!...
... wonder if all those people wearing the President endorsed end of the recession rose colored glasses ever stopped to wonder if gas purchases might have helped trump up this figure? Well, I did, you knew I would! And I found that rising gasoline prices sent service station receipts up 5.1% in the month. If we had journalists like we used to have, they would have known to go look at the rising gas price component of the report, since just last week the Trade Deficit jumped by 16% in one month due to rising oil prices...
...Speaking of the Fed and inflation... David Galland, who writes daily letter regarding the goings on in the world called "Casey's Daily Dispatch", and can be found here: http://www.caseyresearch.com/casey-services/free-publications/caseys-daily-dispatch/ , had this to say yesterday regarding this subject of the Fed and inflation...
"Reason Magazine... current edition, had a couple of items that I thought were especially interesting. Ironic, actually.
The first was about a comic book the Fed has published discussing inflation, as well as defending its autonomy. You can view it by following the link below. What you should find interesting is that they make several clear mistakes in describing inflation – for instance, by saying that if the price of oil goes up, that causes inflation. And on the very first page, they state that “The dictionary defines inflation as a substantial and continuing rise in the general price level.”
But that is not what the dictionary says – every entry I checked always includes “… related to an increase in the volume of money,” or words to that effect. Kind of scary, when the organization charged with fighting inflation doesn’t actually know what it is.
You can read the comic yourself here, straight off the New York Fed’s website. http://ia301540.us.archive.org/2/items/gov.frb.ny.comic.inflation/gov.frb.ny.comic.inflation.pdf
...The Chinese government has told Chinese companies they do not have to honor derivatives and commodity futures contracts made with Western financial institutions.
What does this do to the institutions that wrote these contracts with China, ... It's going to hurt... And it's going to hurt bad... But, nobody really knows just how many or how much risk is out there... But, if one day you wake up and hear on the news that the financial markets here are melting down once again, you'll be able to say...
...Big Al Greenspan was back in the news last night... ("In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value." quote by Alan Greenspan, from an article written in 1966 entitled "Gold and Economic Freedom")
Any way... Big Al was back in the news, and said that he's worried that lawmakers will hamper the Fed's efforts to rein in its monetary stimulus, and that inflation might "swamp" the bond market. See, how Big Al is sticking up for the Fed, and putting down the groundwork now, to blame lawmakers when inflation is soaring on the other side of the recession?..."
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