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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Kirk © who wrote (23851)8/18/2006 5:28:34 PM
From: shres  Read Replies (1) of 42834
 
"...Tell you what, since you imply I'm dishonest, why not give us another variable that goes into CPI that tracks the ups and downs better than the graph of oil prices I gave. I dare ya!..." shouts Kirk, the board bully.

Hey Kirk, Uncle Ben says oil price increases have only a little bitty effect on inflation and haven't contributed to price volatility. What do you think about them apples?

But then he's a REAL economist with a REAL Ph.D. if you know what I mean.

"...the oil price increases of recent years appear to have had only a limited effect on core inflation (that is, inflation in the prices of goods other than energy and food), nor do they appear to have generated significant macroeconomic volatility.

Oil price increases in the past few years, unlike in the 1970s, have not fed through to any great extent into longer-term inflation expectations and core inflation, as the public has shown confidence that any increases in inflation will be temporary and that, in the long run, inflation will remain low..."


Remarks by Chairman Ben S. Bernanke
February 24, 2006
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