Government spending and inflation comments

Government Spending (Trailing Twelve Months)

Note how the ‘soft spot’ in govt. spending corresponds to the softening in domestic demand. Fortunately exports have been expanding sufficiently to sustain reasonably high levels of GDP.


CRB Index

PCE Price Index

Looks like a full recovery from the Aug 06 gasoline price collapsed engineered by Goldman’s changing of their commodity index weightings?


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