Tuesday, April 14, 2009

No Trees Died in the Making of This Statement

"Another government report showed prices paid to U.S. producers unexpectedly fell in March after two months of gains, indicating the recession is keeping inflation under control."

This is one of today's Bloomberg headlines. The recession has provided us with an unexpected bonus, no inflation? We also save healthcare costs with every death. Inflation and deflation are simply opposite sides of the same coin. Will the pinnacle of reportage be, "Inflation crushed by government policy," which would be newspeak for "Depression raging!"

As the administration throws every possible reinflation tool at the recession, "inflation under control" has a benign and comforting feel? True it is much better than, "wages collapse" or "government begins subprime lending anew to stem foreclosures." But certainly both of those statements are implied in the Bloomberg headline.

Is it any wonder that for news and analysis people are increasingly going outside of the mainstream media?

John Barnyak