Jobless Claims, Inflation,
Trade Deficit - Each Surge Higher
by Staff - October 14th, 2010 - Reuters
New U.S. claims for jobless benefits rose last week, hardening the view the central bank will pump more money into the economy, and keeping pressure on Democrats poised to lose congressional seats in Nov. 2 polls.
At the same time, record-high imports from China helped push the U.S. trade deficit wider in August, while rising food and energy prices pushed inflation at the wholesale level up twice as fast as expected last month.
Twice as fast as WHO expected? Responsible economists have said repeatedly that Bernanke cannot continue to flood our nation with money to keep spending propped up without at some point initiating a huge surge in inflation.
Is this the start of the predicted surge? Even if Bernanke manages to keep it under control for a while with a careful balancing act, the rampant inflation of the Carter years is coming soon to a store near you.