High Prices Cause Drop In... Prices

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We're really trying to get our heads around this whole "The Economy" thing. And here's what we've put together about this turbulent week in American money: The inflation rate in the US is at a 17-year high, driven up in part by sky-rocketing energy prices. Rates have been rising 1.1% monthly. People are paying 5% more for the stuff they buy than they were a year ago. That is what we like to call "bad news bears."

However, as a result of the ensuing economic panic and the not-unrelated decreased demand for oil, yesterday was the second day in a row world oil prices saw a decline. This-aided in part by other disastrous economic circumstances-dominoed into a Wall Street spike of 2.5 percent, bringing the Dow up by more than 270 points.

It's not more than the calm before the Depression, but if you're a true optimist, you might see this as a glimmer of hope. And if you're an off-the-grid back-to-the-lander who lives in a secluded cabin in Vermont, you are probably more on the right track than anyone else.