Saturday, July 1, 2017

Price distortion

These are the weighting that make up the consumer basket of goods. 

 Two of the goods, medical and housing, have been rising at 3.5% and 5.5% recently, leaving the rest of the basket with near zero inflation.

Food, auto and clothing cannot keep up and producers are dropping out, witness the retail collapse.  Governments are being hit with dropping consumer taxes and increasing medical pension costs.

The dollar economy has to restore balance in pricing.

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