August 2010
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GGN- Economic News :: August 12, 2010 Part 2/2

PLEASE SUBSCRIBE!!!!! (Money News) Experts warn that overall food-price inflation is inevitable, as Wal-Mart reportedly has already hiked prices amid a recent jump in wheat prices and the failure of the Russian harvest. The most immediate impact will be felt in the price of bread and bakery products but other food items which make use of grain will also rise, according to analysis from Verdict research. This includes some meat products where grain is used as animal feed. Meanwhile, a recent JPMorgan survey of supermarket pricing in Virginia showed a 5.8 percent increase in average prices at Wal-Mart, which represents the most significant sequential increase since the inception of the study in January 2009, the Business Insider reported. The survey compared a 31 item like-kind basket at a Wal-Mart Supercenter, Kroger, Safeway, Harris Teeter, and Whole Foods, the Business Insider reported. – (Yahoo News) The Federal Reserve is once again trying to put a floor under the US economy. Worried about the threat of deflation — or as Ben Bernanke & Co. put it, “measures of underlying inflation have trended lower in recent quarters” — the central bank said Tuesday it wold begin to purchase longer-term Treasury securities. This second round of quantitative easing is meant to lower mortgage rates (boost the housing market) and increase demand for bank loans (grow the economy). Yet many reading this must be thinking: What deflation? Prices of gasoline, food, health-care, education … [...]

M3 Inflation and Ireland: Deflation Sets In

My thought bubble on M3 Inflation is going to be developed further as time goes on. The basic premise is that the annual growth rate of money supply (M3) minus the amount money can earn in a year (short term interest rates) will approximate a ‘true’ measure of inflation/deflation. This type of measure is needed [...]

Deflation Portfolio Picks (CTSH, IEF, UN, SYK)

Not that there aren't counter-arguments to the possibility, but if you think the U.S. is in the same rut Japan was in then, it may be time to rework your portfolios for deflation protection. Here's a starter set for you, and the rationale … [...]