Dow dodges doldrums as dollar dwindles
Dow Chemical plans to raise prices by 20% next week on its products in response to surging energy costs. Another US chemical major, Huntsman, followed that announcement with its own calling for 25% price increases on all products.
Dow CEO Andrew Liveris blamed failed US energy policies. Perhaps he’d do well to take a step back and see that energy policies are victims too.. of monetary policy.
Just to illustrate the impact that this will have on American consumers, take a look around you. A vast majority of what you can see or touch is made from or includes petrochemicals.
Even if only half of consumer goods were to rise by only half the proposed increase, Americans would be calling on thinner pocketbooks to cover higher prices on the same products.
This, friends, smacks of inflation. The US government’s solution: Fight higher prices by printing more money. Brilliant.
Since prices keep rising, it only makes sense that you would need more money and the only to get more money is to make more money. I see nothing wrong with that plan whatsoever.
Fryer Tuck
May 30, 2008 at 7:35 am
The only way to get more money, sir, is to make more GOODS. This is what Americans misunderstand about the fiat system. More paper money actually equals less real wealth.
Don Lando
May 30, 2008 at 1:04 pm