The CPI numbers just came out. Ready? Overall up .3%. Core (excludes energy and food) was FLAT. Not explicit Dee Flation, but on the razor's edge. The Right Wingnuts will, of course, say that InFlation is looming because the gross CPI was up a smidge, but they're lying, of course; they always do.
Core represents demand pull InFlation, a rise in prices NOT connected to either intrinsic cost increase (that's energy, which is oligopoly pricing and necessary given the structure of the society, and food, which is necessary and largely inelastic demand) or wage push. Not surprisingly, median income is not moving, either, so there's no wage push in the equation. Core prices (ex. energy/food) go up when demand pull is in effect; that is, when the masses have more money to spend on some fixed amount of goods and services (not these days, me hearties). In the case of energy, well, there is that monopoly thing going on. With food, supply is a function of weather and the cost of fuel and fertilizer. Note that those last two are driven by our friend energy.
So, the Right Wingnuts are still wrong. They can't quite get us into a Japanese DeFlationary spiral with their ludicrous propaganda (although there are enough inbred knuckleheads in Delaware these days; who knew?). Yet. Stupid people are easy to flummox, especially if you can spin your evil through the Bible and the Second Amendment. The Fatmen in Famine scenario is just what the Right Wingnuts want. Think, Goldfinger; he would make his stockpile of gold more valuable by destroying the US's stockpile. Same thing here: drive down overall prices by 1%, and your monetary holdings instantly gain 1% in value, WITHOUT YOUR DOING ANYTHING USEFUL. Such a deal.
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