It’s a good thing we have the Fed on our side, promising future “easy money” policies and thereby making sure that market prices don’t do something nasty, like decrease.
Otherwise, you might have retailers and producers resorting to absolutely insane schemes, such as dropping prices on commodities and food and various necessary items. Obviously, in a credit-soaked economy like ours, price declines must be resisted at every opportunity. The last thing you want is for your present-day dollars to actually go farther (and past debts to grow more cumbersome).
Heresy, for sure.
Thankfully, the fine folks at Green Mountain Coffee have gotten the memo:
Green Mountain Coffee: We’re Raising Our Prices
I’m a big K-Cup and Keurig fan, so this eight percent increase (from $11.95 per box to $12.95) isn’t likely to dissuade me much.
So go ahead, Federal Reserve governors. Threaten to flood the system with more money. And smile, why don’t you.