Now setting aside the inconvenient truth that there's never been a global economic powerhouse that has devalued its way to prosperity, let's give the Bernanke a little something to bring to his dance with America's new chair of the US Financial Services Sub-Committee on Domestic Monetary Policy, Ron Paul, on February 9th. Here are the 6-month price percentage moves in some of the things people need to live with:
Cotton = +125.7%
Sugar = +82.6%
Corn = +59.0%
Coffee = +41.4%
Rice = +40.5%
Oats = +36.6%
Copper = +36.1%
Lumber = +33.8%
Oil = +25.1%
Yeah, I guess for the sake of professional policy makers in DC who get dinner for free and a car service to work, I should stop there. To make the Top 10 things that may or may not be considered "luxury things," you really need to have inflated on the order of 25% or more. Pork bellies are only up 10.7% in the last 6 months – so go have yourself some powdered Keynesian Kool-Aid with some sausage links for lunch and like it.
Over that same 6-month period the dollar has dropped almost 6% and now has an inverse correlation to the price of rice and wheat.
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