Tuesday, July 15, 2008
The NYT, reports, "Gas and Food Prices Push Inflation Higher". Sales are down and prices paid by businesses and manufacturers rose 1.8 percent last month. People continue to act surprised by inflation. Think about this: Seventy percent of the cost of corn based ethanol is attributable to the cost of oil - oil to run machinery, make machinery, make fertilizer... When the price of oil triples the cost of most everything follows. It takes time to ripple through the system, but this has just begun. It's time to stop acting surprised.
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