The government is barely accepting we are in a recession. Now, we are looking at inflation. But of course, this isnt as important. Or is it? Look at a slice of pizza. I paid $3 for a small dingy slice of pizza. Three Bucks! This exact slice was $2 last summer. In less than a year, it rose $3. But Why? Lets take a deeper look.

Pizza consists of flour, cheese and sauce (to keep this really simple). The price of a bag of flour went from $7 to $28 in less than a year. The price of cheese has also dramatically increased. This pressure has caused small and big pizza places to up their prices. Now, wait until the summer kicks into gear. We have high gas prices, high food prices. This becomes a cascading effect where everything across the board gets raised.

So what can we do? Not much now can we. We cant save our money since interest is so low. At the same time, getting a job is taking MUCH longer than usual. You have consumers dipping into credit and raking in more debt. Debt when they are having issues paying their mortgage.

With the meltdown of Bear Sterns, things calmed down a bit on the stock market. In my opinion, this is nothing but the calm before the international storm. Its a storm where price increases has a global effect. One in which every country on the globe will feel the pain.