Posted on 11/17/2009 8:28:58 AM PST by FromLori
Just what you needed: higher prices. The Bureau of Labor Statistics released this chart today, showing the fall and rise of import and export price indices from October 2008 to October 2009.
As you can see, prices fell when the recession was in full swing last year, which is great, because when everyone's poorer, falling prices are helpful. Well, were still pretty poor, but here come higher prices roaring back:
BLS: The price index for all imports rose 0.7 percent in October, led by a 1.8 percent increase in fuel prices. The rise followed a 0.2-percent increase in September. The price index for all exports advanced 0.3 percent in October after decreasing 0.2 percent the previous month.
Export prices rose 0.3 percent after falling 0.2 percent in September. Rising nonagricultural prices more than offset a drop in the price index for agricultural exports. Prices of overall exports decreased 3.4 percent for the October 2008–2009 period.
(Excerpt) Read more at businessinsider.com ...
ping chart at site having trouble for some reason getting pics or charts to post.
Prices on what fell????
But if you say it long enough, people will believe it...
bad news. since the US imports a lot more than it exports a weak dollar is not good.
But wouldn’t more expensive imports make domestic products look more attractive?
shure a weak dollar boosts the tourism business, exports and domestic production (at least in the short run because as long as you have to import most of the raw materials you will need for the production the benefit is almost gone).
That’s only if we made domestic products.
btw. especially for the US a too weak dollar has an other very negative impact. since most oil is tradet in dollars it´s only a matter of time untill the oil price will rise because of the weak dollar. and this would only hit the US because the rest of the world would still get their oil for the same pice while the US would have to pay more. and higher oil price means higher production costs.
Prices on what fell????
Housing, including rent. It’s the primary driver of deflation, and really the only one. The other big driver was autos, courtesy of cash for clunkers. But that was artificial. At least the housing decline was due to market fundamentals. But here again, the government intervened with the $8000 first time homebuyers tax credit, trying to re-inflate the housing bubble. It too will eventually fail and will only cause more pain in the end.
The Fed is rapidly approaching a point of no return. They either have to stop the easy money stimulus and let the economy bottom and recover correctly. Or they will continue the easy money bailouts and the deficit will tank the dollar and you will have runaway commodity inflation like last year with $150/barrel oil and skyrocketing food prices. That will tank the economy via stagflation.
Sadly, the lobbyists will push for the latter, and will probably be successful in convincing the congress to keep the spending party going.
but but... i thought if we allowed free importing of all goods instead of imposing tariffs, all the products would be cheap
/sarc
gee... if the products were produced in the US, there would be more jobs and promoting exports would help improve the economy... and any imported goods would be generating import tariffs
instead, we get this crap. well done libtards and go-go globalists
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