Ben Bernanke, the Federal Reserve Chairman is facing a tough decision over what to do about the inflation rate. In order to aid the falling economy, a stimulus bill was passed, and has helped the economy slowly recover. Bernanke now faces the decision of whether the Reserve should continue with the stimulus package to keep the momentum of economic recovery, or slowly halt the stimulus to avoid surging inflation rates. There has been growing concern over how the stimulus will affect inflation rates worldwide if the Reserve continues buying Treasury notes.
Critics of the Feds stimulus claim that the loose monetary policies may have a partial role in the swell in commodity prices and global inflation rates. The current rise in gas and food are putting a strain on the American consumer.
According to the LA Times, gas prices have risen close to 40 percent from last year, which has driven up the prices of other goods. Wages are not rising like food and gas, and the unemployment rate, though improving, is still high.
As prices continue to rise, many Americans are sometimes driven to rely on unsecured credit through credit cards and personal loans to make ends meet. Oftentimes, the only way to eliminate this overwhelming debt is to consult with a bankruptcy lawyer for debt relief.
Small businesses also suffer from high commodity prices, and may find it difficult to keep their businesses afloat. Experienced bankruptcy attorneys can help the business owner or the individual make it through financial turmoil.
