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Politics : Formerly About Advanced Micro Devices

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To: combjelly who wrote (798589)7/31/2014 9:29:37 PM
From: Tenchusatsu  Read Replies (1) of 1582881
 
CJ,
Only problem is, it wouldn't just hit two sectors like that, but be across the board. So that isn't what happened.
There are other sectors that are also seeing price increases. Housing, for example, is not considered to be as important to the Fed's calculations as it is in the CPI.

Yet the low interest rates during the Greenspan era helped contribute to the real estate boom and bust. Maybe if they paid more attention to the housing bubble, they could have put the brakes on before the crash.
Energy costs are up because of the ME and because China and India has a growing middle class.
Which in effect has the same impact as generalized inflation. More money chasing after the same amount of resources.

And with China artificially devaluing the yuan, we have in effect a currency war where all nations race to devalue their own currencies. Which in effect also has the same impact as generalized inflation in that buying power is decreased.

Tenchusatsu
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