Inflation Up - This is a Surprise?

Wholesale Inflation Takes Biggest Jump in 6 Months

To those of us with common sense - meaning us peasants not living in DC - this was a long time coming and it's just the beginning. The headline states inflation is at its 6 month high. Well, what did we start doing about six months ago? Here's a hint: it involved the Federal Reserve and a giant printer. Yes! We started printing money like it was going out of style.

The primary cause for inflation occurs when the government prints an excess supply of money. Just like anything else, when you have an excess of anything it becomes less valuable. That's why diamonds are so precious and dirt is dirt. When there's excess money, prices shoot up. This phenomena that many of us learned in college (or even high school) economics is called a demand-pull.

According to the article: "Despite the big jump in wholesale prices in January, economists do not believe inflation is on the verge of becoming a problem, given the country's deep recession."

Oh really? These must be the same economists who thought credit default swaps and sub-prime mortgages were a great idea. Inflation is up a little as a result of a few hundred billion dollars printed over the Summer, how will inflation react to the trillions of dollars in bailouts, stimulus, and "Fed injections" that have been pumped out since then? All of these programs have a ripple effect, and if we continue down this dangerous path of irresponsible government nanny-ing, we're going to see 2008 and 2009 as the good old days, when if we saw a dollar bill on the street we'd actually bother to pick it up.

Keep it up Congress, we'll start stocking up on toilet paper; a more valuable currency.