By Kurt Cobb As the European Central Bank (ECB) prepares to raise interest rates to prevent inflation, the bank cites rising commodity prices, particularly oil prices, as a sign of that inflation. What the bank and other market participants don’t seem to understand is that high commodity prices and, in particular, high oil prices are deflationary. The logic is so simple it’s hard to understand why smart people with advanced degrees can’t see it. Commodities, particularly oil, pull money away from other sectors of the economy. When people are forced to choose between paying for heat and…
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