" Food Prices Are Soaring Faster Than Inflation and Incomes " ...Food price rises ARE inflation!
I've been saying this about housing for a while.
Food Prices Are Soaring Faster Than Inflation and Incomes
201–210 of 605 posts
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#202" Food Prices Are Soaring Faster Than Inflation and Incomes " ...Food price rises ARE inflation!
"Food prices are not properly accounted for in inflation measures" There, fixed the headline.
No, one component of “inflation” (defined as the rise in the consumer price index) rises much faster than the others.
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#203I have been buying GSG for the last few weeks as a hedge. Beyond transient effects of COVID-19, more chaotic weather due to climate change seems to be wreaking havoc. Beyond that, our economy seems to be increasingly reliant of raw materials that are increasingly harder to extract or that we demand more and more of. For examples of climate havoc, look at the drought in Taiwan and the deep cold in Texas. For examples…
What’s GSG?
Probably this:
https://www.ishares.com/us/products/239757/ishares-sp-gsci-c...
In other words a commodity ETF.
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#204" Food Prices Are Soaring Faster Than Inflation and Incomes " ...Food price rises ARE inflation!
Food price rises are not inflation. Inflation is an increase in the general price level, and specifically it's not an increase in the prices of a selected set of goods.
It is the inflation for the poorest population. What does it matter that 4k tv's are cheaper to people who spend all their money on necessities.
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#205Which prices are increasing slower than inflation to counteract this? EDIT: It's energy. https://www.bls.gov/cpi/
Also clothing, medical care commodities, and transportation services.
Meanwhile used cars are up more than food in the US. That graph has bizzare rollups you need to click through.
But the article is really about 40% spike in global basic commodities for the global poor, not 3% US bump.
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#206Earlier quoted context omitted.
Sure, almost all central banks over the world have printed an astronomical amount of money. Even though they may state there is no significant inflation, I dont buy it and neither do many other economists. Stock prices, house prices and now, at last, commodity prices have gone through the roof... But you're probably earning about as much as you were a year ago, or less, if your industry was affected... It's not just…
Asking for investment advice in a forum is probably not the best idea, but does anyone have any advice for someone who's been sitting almost entirely in cash for over 2 years (including missing the covid rebound)? I have a fair amount of experience in the market but from an intuition perspective, I feel like I have alzheimer's or something, I haven't a clue what a person should do in this situation.
Same. I think market bubble is going to keep going atleast in near future because of the new stimulus money that is going to start flowing to the market soon.
https://www.cnbc.com/2021/03/08/how-the-young-plan-to-spend-...
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#207Earlier quoted context omitted.
These boom bust cycles are caused by fiat money, inflationary debt/spending, government stimulus and over regulation that causes false market signals and creates bubbles, it’s not a capitalism problem, capitalism would be the solution.
Fiat money is the outcome of unfettered capitalism. The government needs money to pay its loans that it took with interest, so what does it do? Detach the currency from anything tangible like gold or other precious metals, then print more money as it desires, devaluing the hard work of people who are trying to save money. There's a reason that interest and usury are prohibited in Islam, Judaism, and Christianity. Mar…
So in the same paragraph you blame capitalism for something the government does without our consent? We have to at least assign blame equally, instead of picking and choosing which involved systems and actors to blame. Especially if we can't agree on the actual causes.
On a side note: I have seen some good analysis/speculation/theorizing done about how interest/loaning would work in a world without government-regulation. Have a look, there may be some redemption in those concepts for you if you divorce them from government meddling (which I would posit, causes a huge chunk of all the evils we blame on capitalism).
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#208Earlier quoted context omitted.
We should say "food prices are soaring faster than the average price of the consumer price index basket."
I agree. I may be being pedantic, but I think food prices are (or should be) the first and most important component of what we measure inflation with. It's much clearer to say "the rest of the basket hasn't risen above normal yet, but I am concerned the headline I quoted will mislead people who don't understand inflation.
You are making a lot of assumptions here. Chief among them is that the price of food must always be strongly tied to the prices of other things in the consumer price index. But clearly, that does not need to be the case. Especially after how unsustainably humans use farmland:
https://amp.theguardian.com/environment/2015/dec/02/arable-l...
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#209Rising food costs. Rising housing costs. Rising unemployment and stagnating wages. Another crash coming in the next couple of years?
Don't forget soaring stock prices too. Sure all feels like inflation to me.
Sure, but inflation is not a feeling. It needs to be estimated using a statistical methodology.
Re: Food Prices Are Soaring Faster Than Inflation and Incomes
#210Earlier quoted context omitted.
Fiat money is the outcome of unfettered capitalism. The government needs money to pay its loans that it took with interest, so what does it do? Detach the currency from anything tangible like gold or other precious metals, then print more money as it desires, devaluing the hard work of people who are trying to save money. There's a reason that interest and usury are prohibited in Islam, Judaism, and Christianity. Mar…
I'm pretty sure interest isn't prohibited in Christianity (not protestant Christianity anyway.)
It was prohibited in early Christianity before the Church gave in and allowed it.