Very Confusing

[CoreIssue]

What am I missing?

The news says the economy is red hot. Yet every indicator, debt, job creation, new unemployment claims and so on are bad.

When I drive route, traffic is way down, I see more stores closed and so on.

Because gas prices are up the Feds keep increasing the interest rate. But how does that mean inflation is actually on the rise.

Can someone make some sense of all of this for me?

[CTZonEdit]

I dont know what "magic" indicators they are using but they are not showing what is really going on.

[John * Thunder!]

`Because gas prices are up the Feds keep increasing the interest rate


Ummm, how does that work?? That sentence totally confused me. You're saying that
the Feds keep increasing the interest rate because gas prices are up??

Shouldn't that make them lower it??


`

[John * Thunder!]

`

.. and the news keeps getting better :eek:


Airfares set to keep rising despite price probe!


http://today.reuters.com/news/newsarticle.aspx?type=topNews&storyid=2006-06-22T215712Z_01_N22434972_RTRUKOC_0_US-AIRLINES-AIRFARES.xml&src=rss&rpc=22

`

[CoreIssue]

`


Ummm, how does that work?? That sentence totally confused me. You're saying that
the Feds keep increasing the interest rate because gas prices are up??

Shouldn't that make them lower it??


`
It is an increase in consumer spending which equals inflation in their eyes.

Yep. Fuel prices going up indeed pushes up prices of other things. But no, it does not means we are buying more or have more money to spend.

Bottom line is we get hurt and it does nothing to bring down gas prices.

[CoreIssue]

I dont know what "magic" indicators they are using but they are not showing what is really going on.
Ain't that the truth!