Inflation Abounds

Click on Graph to View (Q) The Federal Reserve is now in day 1 of their two day meeting. The statement we get tomorrow, and the minutes we will read next month are likely to be intriguing.

Why? The longstanding official myth that inflation is modest, and contained is starting to be recognized for the fraud that it is.

Examples abound: The Times of London: Food-price inflation has already pushed up a typical family’s weekly shopping bill by 15 per cent in a year (Era of cheap food ends as prices surge). Yet here in the US, the BLS has food prices up only 4.5% year over year (that's with the dollar down ~2% vs. the pound)

The price of rice has increased dramatically in recent weeks due to crop failure overseas and resulting hoarding… Rice has doubled in price in six months. (Bay Area Shoppers Asked To Limit Rice Purchases)

During the first week of April…leisure fares from traditional carriers on 280 major routes rose 13 percent from the previous year...We've got an industry that's in trouble," said Vaughn Cordle, chief executive and chief analyst at AirlineForecasts in Washington. "If oil prices stay anywhere near $100, $120 for the year ... we'll have a massive restructuring of the airline industry." (Summer travel headaches loom as airlines' woes deepen).

All these obvious price increases are begining to undermine confidence in the Federal Reserve. Courtesy The Big Picture

Obama Splits With Wright

In an extraordinary press conference here, Obama denounced the Rev. Jeremiah Wright, saying that Wright's comments yesterday angered and saddened him -- and are antithetical to what his campaign is about.

"I've known Rev. Wright for almost 20 years. The person that I saw yesterday was not the person I met 20 years ago. His comments were not only divisive and destructive, but I believe that they end up giving comfort to those who prey on hate, and I believe that they do not portray accurately the perspective of the black church."

"They certainly don't portray accurately my values and beliefs. And if Rev. Wright thinks that that's political posturing, as he put it, then he doesn't know me very well. And based on his remarks yesterday, well I might not know him as well as I thought, either."



Comments from Andrew Sullivan
That was a very impressive, clear and constructive re-framing of the core message of his candidacy; and a moment given to him by Wright. No one will ever be able to say that Obama threw his father-figure and pastor under the bus. We all know that the reverse happened. We also know that this clear repudiation of Wright's toxic, indeed "ridiculous" views on AIDS, 9/11 and permanent immiseration of people of color could not have happened unless Wright had made it necessary. Skeptics may wonder whether Wright actually deliberately did Obama a favor. I doubt it. But a favor it unintentionally is.

Maybe God does bring good out of bad. Maybe these racial and cultural divides can help us understand how better to move beyond them. Cynics may scoff - and certainly will. They will parse every nuance and try to paint Obama as another cynical, positioning pol. I don't believe it. He has more sincerity and integrity than the vast majority of politicians, more honesty, and more resilience in a very tough spot.

And today, we found that he can fight back, and take a stand, without calculation and in what is clearly a great amount of personal difficulty and political pain. It's what anyone should want in a president. It makes me want to see him succeed more than ever. It's why this country needs to see him succeed more than ever.