Tuesday, January 25, 2011

Imposing price caps guarantees higher long term prices as producers go out of business because they can't pass on higher input costs. Price inflation is showing up in commodities worldwide. Commodities are the necessities of life, so don't be too complacent when assured that inflation is in check here in America. Energy is an input into almost everything. Our government's war on energy production will almost certainly contribute to energy driven price inflation here too. Real wages can continue to deflate while necessities continue to inflate. As the last paragraph of the article notes

"elimination of administrative barriers to business - that's the best solution to the problem ". For Idaho that would mean limiting or eliminating the influence of the Federal Bureaucracies.

Russia Imposes Inflation-Driven Price Controls: Will Use Price Caps On "Socially Important" Commodities | zero hedge:  www.zerohedge.com/article/russia-imposes-inflation...ities
http://chum.ly/n/61a356

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