Excessive Spending - Inflation

Wholesale Inflation Jumps on Gas Prices

Okay, that's no surprise.

Fuel prices, economy feed slump in tourism

Okay, that's no surprise.

Treasuries Fall; Inflation Report Fuels Speculation for Fed Rate Increases

Okay, that's no surprise.

See, now here is where most of us get a little bent out of shape.

1. Energy prices go up making the necessities of life more expensive
2. We give up the discretionary spending such as travel for fun
3. The Fed raises interest rates making everything even more expensive

That way, not only do we have to scrimp to get along, we can suffer to get along. Businesses can tank, jobs can disappear, people can lose their investments, and things generally get worse.

But, we've addressed the issue of high energy costs... or have we? Remember, most of those costs are related to demand for oil in Asia. So, we have to keep importing more Asian products which are cheaper than American-made products to keep the prices down and that adds to energy demand in Asia which increases the cost of oil which ... okay, we keep going round and round... until things get so bad that we stop buying things from anyplace and then, once we have achieved worldwide recession, we can get the oil prices to fall.

Such supreme intelligence to come up with that strategy.