51–60 of 72 posts
Earlier quoted context omitted.
The price seems to be 500€ but per what? Per ton? Then durum wheat is 50 cents/kg so in that case it would not be the dominant factor.
> 50 cents/kg Cheap brand pasta are barely more expensive than that (0.7-1.2€/kg), so that sounds like that's the dominant factor at least for some brands.
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In the EU it seems weather and leaving more land uncultivated. So in some ways a planned price increase by lowering production. https://www.world-grain.com/articles/13660-usda-eu-grain-out...
The article you linked says that they had difficulty planting because of weather conditions - that doesn't seem planned, or in any way related to modern monetary theory.
That’s seems like they are removing land from production unless I understand that wrong.
> According to Ferro, big pasta producers are already rushing to stock grain, which can be stored for up to two years. So how much of this price rise is genuine demand and how much is a panicky market bulk buying in response to a perceived future shortage? Sounds like we might have a bit of a toilet paper situation here.
https://www.bakeryandsnacks.com/Article/2021/09/10/Out-of-co...
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>>Can it ever recover if people lose trust in it? Since that's a major part of what's keeping such a system going. This is the most important thing MMT supporters seem to ignore. Fiat money is a confidence game and all the theories will be pointless if people lose trust in the money.
A government only accept its currency to pay taxes -> you have to pay taxes -> you need the currency even if you lose trust in it. It's the power of raising taxes what gives money its value. "Variations of the modern-money narrative are found repeatedly throughout history. The levying of monetary taxes to create waged labor was “a nearly universal experience throughout Africa” in the colonial era, explains economist…
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Based on the article, it seems that the rise in grain price is closely linked to difficult weather conditions across key grain farming areas. Do you have any data to suggest that modern monetary theory is a more important factor here? Edit: maybe that's not what you're suggesting, anyway, still curious.
There certainly was a massive late cold that too (extremely rare) impacted the Rhône banks (big fruit region in France). I don't know about Italy but we're in for a very expensive turn of year. I'm not surprised wheat is touched too. My only gripe is that prices usually don't come down when the original problem causing the spike went away (say one or two years after). I'd like to understand why but feel it's one of t…
Earlier quoted context omitted.
The article you linked says that they had difficulty planting because of weather conditions - that doesn't seem planned, or in any way related to modern monetary theory.
With both France and the UK each projected to see a more than a 5-million-tonne reduction in their 2020-21 wheat crops, EU wheat output is forecast to fall by nearly 11 million tonnes year-on-year to 144 million tonnes due to a 700,000-hectare decrease in planted area. That’s seems like they are removing land from production unless I understand that wrong.
> The European Union’s grain output in 2020-21 is forecast to decline by 3% over the previous year due to extremely challenging planting conditions
My understanding is that they cannot plant due to the weather conditions.
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I don't think, because italy produces 70% of its durum wheat, so the price will be influenced but not totally dependent from it.
The price chart in the article showing the +50% rise is labeled "IT durum wheat DELFIRST". I believe the "IT" stands for "Italy", so this is already showing the effect on the Italian market.
durum wheat is "frumento duro".
The price now is 458,00 €/T which quite high.
https://www.ismeamercati.it/flex/cm/pages/ServeBLOB.php/L/IT...
Is there a reason why every price increase is referred to as "inflation" these days? I thought inflation had more to do with debasement of a currency than price fluctuations due to supply and demand, with the key functional distinction being that the former can be hard to reverse while the latter can self-correct given time (e.g. the lumber price increase we saw this summer).
Basically, inflation can be split into two types:
> An increase in the money supply may be called monetary inflation, to distinguish it from rising prices, which for clarity may be called "price inflation".