You guessed it. Talking inflation again. The NY Times published an article on Thursday discussing the problems facing the Fed as growth lags and inflation rises. As I’ve written in past posts the dilemma the Fed is facing is growing ever more difficult. With no foreseeable end to the slowdown and with prices increasing the danger of stagflation is becoming more and more real. The article discusses the following:
1. Despite the short-term cut in interest rates home mortgage rates are on the rise.
2. Prices jumped 4.3 percent in January, compared with one year earlier.
3. The Fed adjusts the forecast for growth this year to an anemic pace of 1.3 to 2 percent. Joblessness is likely to climb to 5.3 percent, from 4.9 percent today.
It’s worth noting the current rise in prices is more disturbing as it is composed of a rise in food and basic goods. This kind of inflation affects us all more heavily.
This week’s edition of the Festival of Frugality on MightyBargainHunter was exceptionally good and featured my post on how to Save Time and Money with These Tips for Organizing Your Personal and Financial Records.
I literally “stumbled” on this site by chance. I don’t know how many of us are familiar with the concept of vampire energy. It was a first for me so I thought it’s worth sharing. GOOD magazine describes itself as “media for people who give a damn”. Anyway, I’ve found this visualization of the concept of vampire energy excellent. It appears that even though they’re turned off household appliances cost US consumers $3 billion a year. Did you know a plasma T.V sucks up $160 worth of electricity each year?
The Personal Financier
I’ve written quite a bit on the economy and on investments this past month. I intend to focus a bit more on real-estate and frugality in the near future (while not abandoning my favorite subjects). Please contact me at: firstname.lastname@example.org for requests, questions, comments or anything else that comes to mind. Your feedback my prime motivators to keep on writing.