Obamunism! Food Prices Rise

From the Wall Street Journal:

An inflationary tide is beginning to ripple through America’s supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades.

Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald’s Corp., Kellogg Co. and Kroger Co. have begun to signal that they’ll try to make consumers shoulder more of the higher costs for ingredients…

We’re in a deflationary spiral due to the economic collapse but our Keynesians from the Federal Reserve on down are determined to spark inflation – because, seriously, they believe that this is a good thing. That it is, actually, a massive tax which hits the very poorest people hardest (and, most incredibly, transfers their paltry wealth to the richest among us) entirely escapes the Keynesians. While the Keynesians aren’t getting what they want out of monetary policy and all the borrowing and spending (ie, increased employment), they are going to get at least part of the inflation.

Here’s why: when you print up all these trillions of dollars, those who hold the most dollars become determined to preserve the real value of their wealth. This translates in to such people moving their wealth from dollars to commodities. Gold is the most noticeable item – and you’ll note that it has skyrocketed to a ruinous level – but all such things of real value have also risen in price. At the end of the day, those who actually need these things to produce goods are forced to transfer the additional cost to the consumer – so, get ready for a bout of retail price inflation.

The squeeze is being placed on the average, working man and woman – in order to prop up a dead financial system our wealth is being handed over to the banksters who are then turning around and using it to push up the price of things we need to live.

If we don’t end this cycle soon then we will get a replay of the late 1970’s – “stagflation”. This,for you youngsters out there, is where we get what Keynesian theory says is impossible: economic stagnation coupled with high inflation. That it already happened once before should have driven the nail in Keynes’ economic coffin, but it didn’t…and now slavish devotion to these stupid theories is going to put us right back in to 1979’s economy. Welcome back, Carter, indeed.

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