21 July 2008

We got cows?

Ronald Reagan used to blame them for global warming.


Moos and methane?


Okay, well, the point is made.

Not A perfect storm

Not even like the scene in Twister where one of the characters ends a cell phone call with the line: "I gotta go.  We got cows."

More like cow farts.

The consumer price index for June is expected to be up one half of one percent  to 2.9% with the core inflation rate being up about 0.1 per cent to sit at 1.6%.  That's well within expected targets by the Bank of Canada and certainly no cause for panic.

There is a need for vigilance and for prudent action, when necessary.  There are other countries where inflation is far worse

Mexico just boosted its bank rate to deal with its own inflation situation (5.25% for June year over year).  There's pressure for action in Britain (3.8% inflation) and in Venezuela, where inflation is running at around 31%, Hugo Chavez has decided it's time to stir up border troubles and spend billions on new submarines, tanks, aircraft and attack helicopters from Russia (15% inflation). 

To help understand the whole inflation issue, you need to have a grip on simple numbers and the words.

But a perfect storm?

Only if you start to believe what you see in McCain campaign ads.