As far as the delflationary effects of globalization, I think we have passed the point where that will drive CPI down.

Globalization helped when the dollar was strong. Now the China RMB has gained 10% on the dollar in the last year, and that’s w/o the VAT.

It will take a few more months before that hits retail prices, but it will. India is gaining value over us too. About the only places that aren’t right now are arguably Japan and Taiwan.

Core inflation is a joke, and everything else here (health care, services, education, materials) are sky rocketing.

Inflation numbers are manipulated to make wall street feel like the net GDP numbers are okay.