Friday, July 15, 2005

Angry Bear on inflation

Angry Bear: "Has this fall in inflation rates been the result of softening demand, or is there another explanation? If it's demand-driven, is it simply another reflection of this spring's economic 'soft patch', which recent evidence caused some to suggest may have ended in the past month or two? If so, does this mean that inflation rates will begin ticking up again this summer? Or alternatively, is this inflation data circumstantial evidence that the soft patch is continuing, and perhaps the beginning of a more protracted economic downturn?"

There are those, who insist that inflation is higher than it seems.

And, there are those of us, who fear that deflation might pop out from behind clouds of dust, to send the economy into a tailspin.

But, maybe this is all "good news" for the economy, and for Republicans, who hope to put the day of reckoning off until a Democrat arrives in the White House, ready to be Hooverized.

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