As we like to stress to statists who have no clue about the causes of inflation or how the gubment tries to hide price increases in the CPI by removing food and fuel prices from the calculations, the increase in the MONEY SUPPLY is the inflation, causing a decrease in teh buying power of each unit of money as that liquidity moves through the system from the large banks to the little guy trying to keep his job. Once the little guy recognizes that prices are wayyyy up for things (oh, like, un... FOOD) he will begin to cut back on his spending, causing sellers to be stuck with new inventory they bought on the expectation of more sales. This leads to cut-backs in employment and orders for more goods, which causes more job loss systemically.

It's called the "Business Cycle", but it's not caused by business. It's caused by government and the bank to which they hand a monopoly on controlling the interest rates, ie, da FED.

Here's what looks to be the start of the increase in prices which will go up and up as the economy also sees a false "recovery" for a few quarters. Watch out, cats, because the price spikes are on their way!

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/12/16/MN571GQRDL.D...

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