For years the economy has been "cyclical"... most people just accept that but don't understand why. One of the major reasons WAS because the Fed used to "create" the cyclicality. They would stimulate economic activity by lowering rates and increasing liquidity. Then when those inflationary actions had raised the inflation rate in the economy too much, they would raise rates and drain liquidity. When inflation had cooled, they would step on the gas again. But since the GreenScam Fed, they basically don't do that any more. Instead, they (2) keep the inflationary money-pump pedal mashed to the floor, and (2) LIE about the inflation is causes. Why is that? The correct answer will tell a lot about the future of America...
Oil and gold drops are being more than offset by material, food and other energy-source inflationary spikes. The worst part of this is that producers have just begun to pass on to the consumer many of the costs that were building for the last year at the wholesale level. They tried to hold the line but couldn't any longer - Tyson Chicken is a perfect example of this. Now, this is anecdotal, but I have to say it nonetheless (so disregard it in the grand scheme of this discussion): I had the misfortune of having to go shopping this past weekend. I have never before seen, nor did I ever expect to see, a green pepper that cost $1.50. I'm talking about a single green pepper.
I love that line. I used to write it all the time. The bottom line is NO one has any idea what they are doing. This whole system has ZERO redundancy. It stretches from ocean to ocean, nation to nation. The risk of something going wrong is very very high