The Militant Libertarian

I'm pissed off and I'm a libertarian. What else you wanna know?

Wednesday, December 17, 2008

Devastating News! Consumer Prices Are Falling
by Rick Williams

If you're wondering how stupid (evil?) our so--called leaders and their mainstream media mouthpieces truly are, look no further than their commentary on the latest consumer price news. Consumer prices (a leading inflation barometer) fell last month by the largest amount on record, going back 61 years. Prices across the board fell 1.7 percent in November, surpassing the 1 percent previous record decline set in October. The overall decline in prices reflects a huge drop in energy costs in recent months, with the price of gasoline falling from $4.11 per gallon in July to $1.34 per gallon in November. Only a few months ago, most commentators were anticipating that the wizards at the Fed would be pushing policies to fight inflation-- battling against the prolonged surge in energy prices from Spring-Summer 2008. Oops-- that's all inoperative now. Which, of course, might make one think the Fed has no better crystal ball on such matters than anyone else, and their wonderful "policy" decisions are nothing more than throwing darts at the board. But that's another story-- this column is about the MSM reporting of the price drop news, so let's get to it.

A reasonable thinker might expect that dropping consumer prices are a good thing-- indeed, a wonderful bit of news for the Christmas season. LOWER PRICES MEAN THAT THINGS COST LESS-- THEY'RE CHEAPER, AND MORE AFFORDABLE TO A CASH STRAPPED AMERICAN PEOPLE. And this is precisely the analysis of Austrian School economists and others who share their views. Falling prices are a GOOD THING-- just look at computers and associated technologies over the past 30 years if you want some irrefutable proof by example. The high technology world has displayed steadily falling prices-- combined with steadily increasing quality, functionality and usability. But not so fast, freedom people! Our leaders and their lapdog MSM mouthpieces have a different tale to tell (hint: it's all a pack of lies and obfuscation). Here's their take on the "falling prices" phenomenon:

"A record plunge in consumer prices in November puts pressure on the Federal Reserve to act decisively to guard against a debilitating bout of deflation." AP at Dec. 16, 2008

Read the rest here:

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