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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Tenchusatsu who wrote (798553)7/31/2014 7:05:54 PM
From: combjelly  Read Replies (1) | Respond to of 1578054
 
It should be obvious. You pump money that didn't exist before into the system without any corresponding increases in productivity. Prices will rise because more money is being used on the same amount of goods.

That is a generalized inflation scenario. Only problem is, it wouldn't just hit two sectors like that, but be across the board. So that isn't what happened.

Food prices are going up because of persistent drought. 2 years ago, we lost 2/3rds of our corn crop. It would have been more if we didn't have that hurricane. Last year was better, but not by a lot. This year looks to be better.

Energy costs are up because of the ME and because China and India has a growing middle class.