July 17, 2010

TIM CAVANAUGH: “It’s going to take a lot more than a trillion new dollars to bring the kind of inflation Ben Bernanke wants. The chairman of the U.S. Federal Reserve Bank thought he had the problem licked just a few months ago, but now, for the third straight month, the “core” consumer price index (excluding food and energy) has fallen. That 1/10th of a penny you’re now saving on every dollar? Don’t spend it all in one place. The two big items not covered in CPI — energy and food — are both either flat or falling.”

UPDATE: From the comments: “So who fears deflation? Debtors fear it. And who is the biggest debtor? The federal government – to an extent never seen before in the history of this country.”

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