Economic stupidity on display. Libya is NOT causing inflation.

[agar]

Its BS when they say that oil prices cause general inflation because everything is transported.

In realty, the transportation cost component of the things we buy is a MINISCULE component. When a head-of-lettuce is transported from, say Georgia to Pennsylvania, it is not being shipped by itself in a single tractor-trailer! It comes in a crate, along with other crates, stacked floor to ceiling and front to back with pallets.

This creates an "economy of scale". Your "transportation cost" is being divided among THOUSANDS of other shoppers who will ultimately buy lettuce that was transported on that very same truck. Just a penny or two extra per head and the "inflationary transportation cost" is covered.

The reason why my head-of-lettuce costs $2 now is because Bernanke is printing monoploly money to cover our massive deficits, and to lend at 0% to Goldman Sachs to jack up the Dow Jones Bubble!

 

[123tim]

Its BS when they say that oil prices cause general inflation because everything is transported.

In realty, the transportation cost component of the things we buy is a MINISCULE component. When a head-of-lettuce is transported from, say Georgia to Pennsylvania, it is not being shipped by itself in a single tractor-trailer! It comes in a crate, along with other crates, stacked floor to ceiling and front to back with pallets.

This creates an "economy of scale". Your "transportation cost" is being divided among THOUSANDS of other shoppers who will ultimately buy lettuce that was transported on that very same truck. Just a penny or two extra per head and the "inflationary transportation cost" is covered.

The reason why my head-of-lettuce costs $2 now is because Bernanke is printing monoploly money to cover our massive deficits, and to lend at 0% to Goldman Sachs to jack up the Dow Jones Bubble!

Sort of reminds me of what my Father was saying about the gas prices rising because of the situation in Libya. He said that a news report said that Libya supplies 2% the oil consumed in the U.S. He then said that the report visually showed this amount in gallons (not sure how they did this.).

2% might look like a lot if you were to see it, but what would the other 98% look like if you were to see that? It seems like 2% shouldn't cause gas prices to rise (as much as they have) no matter how many gallons it represented.

Just my opinion.

 

[erowe1]

Its BS when they say that oil prices cause general inflation because everything is transported.

In realty, the transportation cost component of the things we buy is a MINISCULE component. When a head-of-lettuce is transported from, say Georgia to Pennsylvania, it is not being shipped by itself in a single tractor-trailer! It comes in a crate, along with other crates, stacked floor to ceiling and front to back with pallets.

This creates an "economy of scale". Your "transportation cost" is being divided among THOUSANDS of other shoppers who will ultimately buy lettuce that was transported on that very same truck. Just a penny or two extra per head and the "inflationary transportation cost" is covered.

The reason why my head-of-lettuce costs $2 now is because Bernanke is printing monoploly money to cover our massive deficits, and to lend at 0% to Goldman Sachs to jack up the Dow Jones Bubble!

Yep. And if the money supply stayed constant, then whatever prices did rise as a result of disruptions in the supply of oil would be offset by other prices lowering. The net effect would be no inflation.

 

[Stary Hickory]

Yep. And if the money supply stayed constant, then whatever prices did rise as a result of disruptions in the supply of oil would be offset by other prices lowering. The net effect would be no inflation.

Exactly, but this is way too much logic for many people.