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View Diary: BREAKING: Fed Launches $40-Billion-a-Month QE3 Stimulus (129 comments)

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  •  Absolutely right. Understanding of monetarism FTW! (4+ / 0-)

    And what makes that argument even worse is that oil and food prices are particularly prone to price swings based on events that have nothing to do with the underlying money supply, such as refinery disruptions and OPEC actions (in the case of oil) and drought (in the case of food).

    Art is the handmaid of human good.

    by joe from Lowell on Thu Sep 13, 2012 at 11:34:14 AM PDT

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    •  Or just plain vanilla supply and demand (1+ / 0-)
      Recommended by:
      joe from Lowell

      Gas prices in particular have season variations based on refinery choices of what to produce and consumer activity. They go up in the summer, down in the winter. Heating oil moves in reverse to that.

      The worst drought in 70 years and found prices are up 1%? That sounds pretty mild to me.

      Romney economics: Feed our seed corn to the fattest pigs and trust them to poop out jobs.

      by blue aardvark on Thu Sep 13, 2012 at 11:39:49 AM PDT

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      •  How about the oil price spike during 2011? (1+ / 0-)
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        blue aardvark

        We were just about in a double-dip recession, but because of the Libyan revolution, prices went through the roof.

        Oil is weird.  Yet another reason to bring on the renewables.

        Art is the handmaid of human good.

        by joe from Lowell on Thu Sep 13, 2012 at 11:53:35 AM PDT

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        •  The amount of surplus supply is thin (1+ / 0-)
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          joe from Lowell

          when demand is high.

          We're going to see horrible gas prices when the recession does end unless we have serious action on renewables first.

          Romney economics: Feed our seed corn to the fattest pigs and trust them to poop out jobs.

          by blue aardvark on Thu Sep 13, 2012 at 12:32:46 PM PDT

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          •  That's the scary part. (2+ / 0-)
            Recommended by:
            blue aardvark, erush1345

            These painfully high prices we've been paying for the past couple of years are happening when demand has been suppressed.

            It's a good thing big SUV sales have tanked, and fuel-efficient cars are back in style.

            Art is the handmaid of human good.

            by joe from Lowell on Thu Sep 13, 2012 at 12:45:18 PM PDT

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