I am not worried about deflation
Mid January 2008 Recent Figure % Change
Federal Reserve (1) 918,677 2,369,857 158%
Orange Juice Price 135.65 138.15 2%
Arabica Coffee Price 133 174.10 31%
Wheat Price 964 702 -27%
White Sugar Price 345 550 59%
Banana Price 679.80 987.07 45%
Average Commodity Price Change 22%
(1) Total factors supplying reserve funds, $ millions
The Federal Reserve created a lot of new dollars in late 2008. This week they decided not to take them back out. More dollars trying to buy same amount of stuff eventually means higher prices. This shows up first in things were easy credit did not affect supply and demand, like what we eat.
