$this->bbcode_second_pass_quote('smallpoxgirl', '
')I couldn't begin to tell you what's happening to food prices over the last six months, but I can tell you that cocoa, wheat, corn, pork bellies, the raw materials that become your grocery store foods are all plummeting right now.
PeakOil is You
Dollar Supply Spikes, Growth Rate Exceeds 24%
Re: Dollar Supply Spikes, Growth Rate Exceeds 22%
by MrBean » Tue 28 Oct 2008, 14:26:00
How can you tell that? All the previous inflationary pressures that affect the essentials in a supermarket are still far from going through the whole system. How's the crop this year, how will it be next year? Are the global stocks in wheat etc. being now replenished, or are they still waning?
Even if the food prices stayed stable while the purchasing power drops (due rising unemployment etc.) that would be still be "inflation" of sorts.
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Re: Dollar Supply Spikes, Growth Rate Exceeds 22%
by threadbear » Tue 28 Oct 2008, 15:06:39
$this->bbcode_second_pass_quote('cube', '')$this->bbcode_second_pass_quote('smallpoxgirl', 'W')e've gone round and round about this before, but inflation is not increasing money supply. Inflation is rising prices.
If you insist on using this definition (which is fine by me) then I think we need to break it down:stock market - deflation
real estate - deflation
everyday expenses - inflation
I don't see prices going down at the grocery store and my land lord isn't reducing my rent that's for sure.
So that means we have inflation in everyday consumer prices with the exception of perhaps SUV's.
Rent and everyday purchases should drop, depending where you are, if deflation due to fear and hoarding persists, along with drop in commodity prices. I agree with SPG that it's where and how money flows that is important, not so much how much is created. Much of it is sitting on the sidelines, at the moment, in money market funds, etc.. Banks aren't lending, people aren't borrowing.
Just as an exercise, ask your landlord if he's open to negotiate your rates down.
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Re: Dollar Supply Spikes, Growth Rate Exceeds 24%
by mattduke » Tue 28 Oct 2008, 15:21:54
Good grief. Is this how people think about money? That some of it is "on the sidelines". And some of it is "put into play". And that some of it is "in" money markets. And some of it is "in" stocks? That it "flows"? Every dollar is always in someone's hoard. Loose language muddles the thinking.
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Re: Dollar Supply Spikes, Growth Rate Exceeds 24%
by threadbear » Tue 28 Oct 2008, 20:56:20
$this->bbcode_second_pass_quote('mattduke', ' ') Every dollar is always in someone's hoard. Loose language muddles the thinking.
Hoarding implies money being parked, and it's a very unusual state of affairs, as people have been trained to "have their capital working for them."
Banks refusing to lend, while they build up capital reserves, is, by definition, hoarding. People clutching their savings, with no yield=hoarding.
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