Energy, Inflation, and a helpless Fed

This is a very interesting article that paints a pretty dim picture of the future of the economy. It discusses how skyrocketing energy prices, a weakening dollar, and growing inflation have eroded household purchasing power. The Feds hands are tied as they can’t raise rates to slow inflation because banks need the expanded credit and liquidity to stay afloat themselves. “This is starting to feel like Jimmy Carter and the 1970s all over again,”. Not a pretty picture to say the least! http://money.cnn.com/2008/07/15/markets/oil/index.htm?section=money_topstories