top ingredient in corn flakes. that s a very good point. you look at refrigerators, whirlpool, lg, are going to be raising prices, they have moved overseas, guess what prices are rising, it s also costing more to ship stuff halfway around the world. labor prices are going up from the quote, unquote cheap labor market. good to see both of you. a very animated discussion. it s the first time i have ever seen pete dominic play economist. it s politics. from politico pundits to economists, everyone including pete had something to say about president obama s budget. now it is my turn. i will reveal my open letter to president obama after this break. ring ring ring ring
whirlpool, lg, they have both said they will be raising prices because of steel and because of metal prices increases. but also because of those labor prices around the world. and toothpaste, soap, you can see 1% to 2% price increases there, because things like palm oil and many of the ingredients that go into the beauty and health care products, those have been rising as well. i talked to an economist and i said is it just things like cold snacks and rising china gobling up the world s resources? what are the reasons why so many commodities are moving up at the same time? he blames the fed, pumping $600 billion into the economy, keeping the dollar low. he says that many of these commodities have become almost like financial instruments, where investors, speculators are pushing money into these hard assets at a time when the economy s also starting to recover and there s more demand for these things and that s driving up a lot of different commodity prices around the world. so we sho