[HeadBanger]

The Price of Gas and Food Rises, Dollar declines

Dollar Declines Against Euro Before Housing, Sentiment Reports

By Gavin Finch and Kosuke Goto

May 16 (Bloomberg) -- The dollar fell for the first time in four days against the euro before reports that may show U.S. housing starts fell to a 17-year low and consumer confidence slumped to the weakest in 26 years.

The U.S. currency pared its weekly advance versus the euro after European Central Bank policy makers signaled they are unlikely to cut interest rates that are double those in the U.S. The yen was poised for its biggest weekly drop in a month versus the dollar and euro as Asian stock gains encouraged investors to increase holdings of higher-yielding assets funded in Japan.

Bloomberg.com: Worldwide

Oil prices fall, gasoline rises
The Associated Press
Article Launched: 05/16/2008 01:33:58 AM PDT

NEW YORK (AP) - Oil futures ended a whipsaw session slightly lower Thursday as the expiration of options played havoc with prices, driving crude near record high levels at times and down by more than $3 a barrel at others. Retail gas prices, meanwhile, advanced past a national average of $3.77 a gallon.

http://www.mercurynews.com/businessheadlines/ci_9279582

FOOD PRICES: COST OF GROCERIES GNAWS AT BUDGETS

By Elizabeth Lee
The Atlanta Journal-Constitution

Published on: 05/15/08

Call it the $4 question.

Will a gallon of gas or a gallon of milk cross the mark first?

Food prices notched their largest one-month increase in 18 years in April, giving shoppers the kind of sticker shock that SUV owners are getting used to at the pump. Milk prices, which had retreated from last November's high of $3.90 for a gallon of whole milk, edged up to $3.80.

Higher costs for fuel and commodities are working their way through the food chain, pushing prices higher at retail. Food prices jumped 0.9 percent in April, with increases in all six grocery categories, according to Consumer Price Index figures released Wednesday.

It's shaping up as the second year of the highest food inflation in nearly two decades. Last year, food prices rose 4 percent.

Earlier this spring, government economists had predicted up to a 5 percent increase in food prices in 2008. That may change because of uncertainty over fuel prices, said Ephraim Leibtag, an economist for the U.S. Department of Agriculture. Food commodity price increases are starting to moderate, but fuel costs keep rising.

FOOD PRICES: COST OF GROCERIES GNAWS AT BUDGETS | ajc.com

Is anyone getting a raise?

[Chaos Mitten]

Oh noes! The sky is falling! I hate America!

[kazeoni555]

a raise? yes, but i guess with gas prices the way they are, no......damnit

[Jackson81]

I just watched a story on how shrimp boats are having to shut down business because fuel costs too much. They said they break even almost everytime they go out to sea because dragging a net burns up so much fuel.

That means fish prices in general are going to go up up up.

[Jay Pan ROKK]

Food price going up is good for everybody.

[Sinatra]

Originally Posted by Jay Pan ROKK

Food price going up is good for everybody.

How so?

[Nietzsche13]

The Federal Reserve should stop increasing the supply of money.

You can't fight inflation with more inflation.

[Huge_Right_Hand]

Goddamnit this bullshit. This is all the Illegals fault!

They took er jerbz!!

[Jay Pan ROKK]

Originally Posted by Sinatra

How so?

Food is under a tremendous pressure by demand, China and India plus most second world countries are growing a big middle class, these people want to eat good meals at global market.

However farmers in the third world can not farm against agricultural subsidies by rich countries.

If food prices go up and up, rich countries will have no other way but to drop subsidies and open their market, then, third world farmers would start farming, with this bigger new supply prices will go down and will be regulated by the market.

These new farmers will start to consume tractors, roads, houses, pens, tvs, computers, books, etc, giving back their money to global market.

It will be a win win situation for all.

[TeTe lol Chin]

It isn't such a bad thing that the value decreasing, compared to that of the Euro, is such a bad thing. This only encourages more tourists to come into this counrty and spend money. I'll have to find a couple, but I read some great stories about families vacationing from Europe in the United States and spending lots of money on our shit because they could finally afford it now. More and more Europeans and people in other countries will funnel their money into the U.S. to buy our products. It may hurt us short term, but that may help boost our economy by creating jobs long term.

Our government/capatalism/resources are too strong to let the dollar fall too low comparatively, however the only thing that probably remains the same regardless of what currency is used, is in the purchasing of oil. That is a lose, lose situation.