The Fed has announced another round of quantitative easing – $40 billion a month until the economy improves. It reminded me of that saying I kept seeing on pirate-themed t-shirts: Floggings Will Continue Until Morale Improves. Because by printing more money, the fed is lowering the value of the currency (it’s basic supply and demand). And when the value of the dollar falls relative to other currency, the price of imports that we buy dollars with, like oil, increases. (Good thing there’s nothing going on in the Middle East that might also put pressure on the price of oil, like, say rioting… Oh yeah…)
It’s also a good thing the federal government doesn’t include oil prices in its inflation statistics! That means inflation won’t be going up at all!
Unless you actually pay for your own gas. Or buy anything that’s transported to your supermarket using gas. Like food. But that’s not included in the inflation statistics as well.
Yeah, this is going to make the economy better.