Wholesale Prices Hit Two-Year High - WSJ.com

ECONOMIC LA LA LAND:Wholesale Prices Hit Two-Year High - WSJ.com

Why is it so hard to recognize that we have:

(1) A bifurcated labor market - i.e. those with education and skills (see BLS reports) have under 5% unemployment. (Do the math for the other numbers).

(2) As for high powered, funny money, the government is borrowing money to give to those who don't work (or produce). Thus the productive sector is having to share its bounty with more mouths and hands. If this isn't an inflation scenario, what is?

Even if the government was able to clamp down on its spending largess, it's rather a stretch to see this all coming back to ground without some major transformative upheavals. After all, the 70's didn't end without some trying economic times in the early '80's and we're seeing lots of evidence of what happens when subsidies encourage too many mouths to seek too little food.

Housing was also a bubble when reality dispensed with finally reasserted itself.

One does wonder how this will all play out?