Prices should remain more or less stable when the supply of money increases at the same rate as the supply of goods and services.

An unexpected increase in German business confidence sent the euro to a one-month high versus the dollar yesterday (Wednesday) on speculation that the European Central Bank could be forced to hike interest rates to combat inflation.

People are starting to question the readings of consumer price indices.

The feds have been hard at work pushing out $110 billion of ‘rebates,’ designed to help Americans do what they already do best – spend money that they never earned.

At their two-day meeting that starts today, Tuesday, U.S. Federal Reserve policymakers will have to grapple with a moral choice that is well beyond the pay grade of central bankers – choosing between the financial stability of U.S. homeowners and world hunger.

You can link the historic surge in gold prices starting mid-August 2007 to many apparently disparate things. Pick the right link, and you might be able to tell whether it’s worth you buying or holding gold today.

Fortune magazine asks an interesting question: How do you account for the discrepancy between the Fed’s recent assurances that inflation is under control and the 91% of the population (according to a March CNN poll) that’s worried it isn’t?

The answer? The feds focus on what they call “core” inflation. This strips out energy and food from the consumer price index because of their theoretical vulnerability to short-term volatility — magically making inflation seem smaller than it is.

“And as more Insane Economic News Of The Day (IENOTD), the Fed’s personal stash of U.S. government debt is down another gigantic $48 billion last week! $48 billion! In one week! One freaking week!”