>>>>Wal-Mart CEO Bill Simon expects inflation:
>>>>http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm
>>>>
>>>>Snippet:
>>>>
>>>>Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June.
>>>>
>>>>"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."
>>>
>>>
>>>We are seeing real inflation here and I feel its not accurately getting through in the stats. I know my weekly shopping bill seems to climb every week. Basic staple items are going up a lot.
>>
>>I've noticed the same so I'm not sure where the stories of not seeing it in the states yet come from...
>
>In addition to the rising costs for some items, many manufacturers are trying to disguise the cost increases by reducing the package contents instead of raising the price for the existing package - 22 slices of cheese instead of 24, etc.
>
>It's going to be a real shock to the populace (regardless of political bent) in about 6 months.....
>
>And yet our government thinks either we can "afford" it....or that it really ISN'T a problem. Of course, they have free worl-class health care benefits and a six figure salary.
>
>But the best they can do is argue over whether 4B or 33B or 66B is "enough" cost cutting for this year.....all while we go 20+B a WEEK further into debt.

I'm not sure the government really controls the economy. We like to think that by turning a few dials and pushing a few levers it can be made to obey like an amiable dog. IMO the president doesn't have that power, the Fed doesn't have that power, Congress doesn't have that power. Adam Smith didn't have everything right but he was right that economies are guided by an invisible hand.

Economists do not agree with you about the debt. Most of them think the government should be pumping more money into the economy, not less. When the private sector is bunched up tighter than a convent, where else is there to turn?