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View Full Version : Are low gas prices a decoy for inflation?



Ardent Listener
22nd November 2008, 19:57
Are low gasoline prices a decoy for inflation? Other than some raw commodites & employment, what else is down now so much as to make you believe that the u.s. is in a true deflation (lowering prices)? If there is a conspiricy to use gas prices to make us think we are in a deflationary economy rather than an inflationary one or perhaps a stagflation, then it seems to be working. Even if gas was 50 cents a gallon how much can you really use? Other than mass gas hoarding in huge tanks by some of us, joe6pack isn't really going to be buying much more than he is now or even when it was $4.00 a gallon. That is especially true if he can't afford to travel anywhere.

No other prices are posted for anything else out on the side of the road as gasoline prices are. If you wanted to make people think inflation is coming down then lower gasoline prices would be the way to go.

It appears to me we may have a stagflation that is being sold to us as a deflation.

Richard
22nd November 2008, 22:21
I think so. It's not a delfation, as in contraction of money supply.

Markets are deleveraging out of everything else, and into dollars. I suspect His Highness (Obama) and house majority will be taxing that rush into the dollar at some point (probably not the first year though, while the rush continues), seeing as how not enough of it will, or even can, get into gold and silver. And they sure as hell aren't about to allow another rush into commodities, any more than they can show the devaluation of the dollar this soon. Ie, they're covering inflation with demand for dollars as is shown on the index. No f'ing way the money supply has contracted! And I'm not expecting metals to do more than medicore and they may even fall more yet, as in half what they are now. Give it a couple years, though, and we may see 1,000 gold and 20 silver again.

prahudka
25th November 2008, 09:03
Are low gasoline prices a decoy for inflation? Other than some raw commodites & employment, what else is down now so much as to make you believe that the u.s. is in a true deflation (lowering prices)? If there is a conspiricy to use gas prices to make us think we are in a deflationary economy rather than an inflationary one or perhaps a stagflation, then it seems to be working. Even if gas was 50 cents a gallon how much can you really use? Other than mass gas hoarding in huge tanks by some of us, joe6pack isn't really going to be buying much more than he is now or even when it was $4.00 a gallon. That is especially true if he can't afford to travel anywhere.

No other prices are posted for anything else out on the side of the road as gasoline prices are. If you wanted to make people think inflation is coming down then lower gasoline prices would be the way to go.

It appears to me we may have a stagflation that is being sold to us as a deflation.

http://www.truveo.com/The-Next-12-Months-Pt-6/id/1913116615

One allegation is that the elites dropped the prices to break the Arab/Muslim powers, which they saw as a threat. Of course, when the Arabs arent doing their jobs in buying US debt, what happens to the dollar and the US economy? Bad things.

I think you will find all seven installments to be very interesting.