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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (78234)	4/23/2008 1:36:04 PM
From: koan	Read Replies (2) \| Respond to of 116555

Exactly. One can sense that the $120 oil is working like a magnet pulling the price of all things up dramatically right now. Also, as most economist's know once prices start moving up it allows businesses to increase prices even more. So in a way, visible inflation sort of creates a critical mass of producing even more inflation because the markets become disorderly and people really do not know what things are worth, so businesses often use that to squeeze prices higher as much as they can. If one goes into the store right now to buy rice, wheat or flour, who really knows what to pay? Real easy for the store to just add a few pennies here and there.