Inflation Confusion: Sarah Palin Schools the Wall Street Journal

It's been a while since one of Sarah Palin's comments was taken out of context so sophisticates could chuckle over her stupidity, but some reporter at the Wall Street Journal thought he'd caught her in a "durrrr" moment regarding quantitative easing and its effect on the inflation rate. Palin took to her Facebook page to set the guy straight.

Imagine my dismay when I read an article by Sudeep Reddy in today’s Wall Street Journalcriticizing the fact that I mentioned inflation in my comments about QE2 in a speech this morning before a trade-association. Here’s what I said: “everyone who ever goes out shopping for groceries knows that prices have risen significantly over the past year or so. Pump priming would push them even higher.”

Mr. Reddy takes aim at this. He writes: “Grocery prices haven’t risen all that significantly, in fact.” Really? That’s odd, because just last Thursday, November 4, I read an article in Mr. Reddy’s ownWall Street Journal titled “Food Sellers Grit Teeth, Raise Prices: Packagers and Supermarkets Pressured to Pass Along Rising Costs, Even as Consumers Pinch Pennies.”

The article noted that “an inflationary tide is beginning to ripple through America's supermarkets and restaurants…Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months.”

I saw that article, too. You know what was frustrating about it? (and what doubtless tripped up Sudeep Reddy?) The inflation articles were on the inside in the "Marketplace" section. But, on the front page, there was a big, above-the-fold story about the Fed's launching into quantitative easing to combat deflation. All you have to do is go to the grocery store, or the coffee shop, or the gas station to know that some consumer prices are on a definite upward trajectory. But, someone in DC thinks the opposite is true.

Maybe real estate or cars or surfboards or whatever are going down in price, but the basics for which people lay out their weekly budgets are going up. (yeah, I know food and gas are not included in the "core" inflation rate. Doesn't mean people aren't seeing rising prices) And, the Fed's worried about deflation? And "journalist" Sudeep Reddy is crowing over Sarah Palin's seeing inflationary ghosts? I'm beginning to worry that "we" know more about what's going on in the world than all of the "thems" who insist they are better able to act on our behalf.

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