Seven Things That Will Cost More in 2011
This is serious. The very mainstream AOL is warning about price inflation.
I guarantee you that no one at AOL is anxiously waiting for the Fed money supply numbers that are issued in the Fed’s H.6 release every Thursday afternoon. They are writing about price inflation because they feel it, and they think they can write about it without getting flack from their readers.
If AOL writers are noticing price inflation, it is a very ominous sign that price inflation is about to kick to the next level, where consumers start acting like prices will be higher in the future and thus cause an acceleration in the price inflation process by deciding to hold smaller cash balances.