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Letter to the editor by Bill Farthing

By Bill Farthing

Inflation is the measure of the monthly rate of change in the prices of the goods and services we buy in our economy. The Federal Reserve calculates and publishes this data. The Consumer Price Index, (CPI) is the average monthly costs of what we pay for these goods and services. The Bureau of Labor Statistics calculates and publishes this data. The CPI values are based on a 1982 value of $100.

The inflation rate for 2009 averaged a minus 0.4% and the CPI average for the year was $214.537. During the first 6 months of 2010, (Jan. thru June) the inflation rate has increased by an average of 2.05% per month and the CPI for June was $217.965. The $3.43 difference between the 2009 CPI and the June CPI equates to a 57cent monthly increase in our cost of living since the start of 2010.

The 2010 Census estimates there are 114 million households in our country. The $3.43 increase in our cost of living over the last six months says we spent $391million more for goods and services during that time and some $65 million more per month went into someone’s profit column than it did in 2009.

Our consumer goods are supplied by financiers, growers, manufacturers and marketers. The cost of food is one of our largest household budget items and like everything else, the prices keep going up.

The creation of most of our food requires materials traded on our country’s several commodity markets. Like oil and gasoline, the trade of food, grains, fiber, livestock and meat are supposed to be conducted on a supply and demand basis. But hedge fund managers have found a haven for use of the leverage from their large investment funds in manipulating the prices of commodity products. George Soros, one of the largest hedge fund managers was a lead financier for the Democrats 2006 and 2008 election campaigns.

President Obama has just signed a new law that he promises will protect consumers and prevent banks and investment firms from creating another ‘Great Recession.’ There are no requirements in the new law to improve the oversight, transparency or control of the commodity markets.

The minus 0.4% interest rate in 2009 did not stop profits for our businesses and industries, it just slowed their rate of growth; 1955 was the last time we had negative inflation and it was also 0.4%.

Let’s meet at the primary polls on Aug. 24 and at the general election polls on Nov. 2 and turn back the clock. Let’s give Obama a change he will remember and all incumbent congressional members a one way ticket home.

Bill Farthing,