US annual inflation declines to 7.7% in October vs. 7.9% expected • Hacker News Board

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#341

Post by eatsyourtacos » Thu, Nov 10, 2022, 4:42 PM UTC

RC_ITR wrote: post #276

eatsyourtacos wrote: post #262

Earlier quoted context omitted.

I guess I must be wrong, but I'll never understand why Coke needs that much advertising. Or anything "that well known". The argument is maybe they are that well known because of advertising, but I just don't think that's the case. Maybe for a crappy product, but not a good product. With Coke it's the quality (and consistency) of the product. I've never tasted anything "as good" as Coke. A new fresh cold can has a bit…

Coke’s advertising isn’t “hey this is what Coke is” it’s “hey aren’t you thirsty and don’t you remember how much fun you’ve had in the past while drinking Coke?”

I've never once grabbed a coke because of seeing a commercial. And I barely drink it because I have enough sugar in my life and don't want my kids chugging soda all day long like I did as a kid.

So I do see your point, I just don't get how that influences people. But again, I recognize it must to enough of a degree- I just don't feel like I'm one of them so it's hard to personally understand. Maybe I am, but I think I'm being objective about it.

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#342

Post by Auracle » Thu, Nov 10, 2022, 4:45 PM UTC

mrtranscendence wrote: post #235

Jerrrry wrote: post #205

Earlier quoted context omitted.

Please explain how literally directly increasing the M1 money supply doesn't cause inflation. Everyone got money for free. Things that are free, tend to have less value.

Everyone got a relatively small amount of money for free. It was nowhere near the amount that would be necessary to cause this amount of inflation.

Plenty of people got a lot more than the usual stimulus checks. People with multiple kids got quite a bit. I’m a photographer and was able to collect unemployment on weeks I didn’t make enough, or spent enough on expenses to offset my profits.

That means all of my usual expenses during that period were paid for (unless I made nothing or too much that week), plus a lot of weeks it made sense for me to get new equipment.

In many states, people on the low end of the earning scale made more through unemployment than they did working. I have two friends with small businesses that had a hard time getting people to come back to work for that reason.

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#343

Post by JKCalhoun » Thu, Nov 10, 2022, 4:46 PM UTC

maeln wrote: post #186

hristov wrote: post #123

Earlier quoted context omitted.

Then buy generic. This is one way to fight inflation. Coke will get the message very quickly if their sales start coming down.

I don't drink this kind of beverage, but from what I see in restauration, you don't really have a choice. Most fast-food and restaurant will have the "known" brand and no generic brand, so they will move the cost onto their customer.

Yes, restaurants (at least they used to) partner with either Coke or Pepsi and get things like free signage, etc. in exchange.

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#344

Post by Auracle » Thu, Nov 10, 2022, 4:47 PM UTC

dlp211 wrote: post #248

Jerrrry wrote: post #205

Earlier quoted context omitted.

Please explain how literally directly increasing the M1 money supply doesn't cause inflation. Everyone got money for free. Things that are free, tend to have less value.

The myth is that inflation was caused primarily by this. It wasn't. Inflation is being driven by a combination of factors, the biggest being supply chain and war in Europe.

Inflation was plenty high before the war: https://www.statista.com/statistics/273418/unadjusted-monthl...

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#345

Post by JKCalhoun » Thu, Nov 10, 2022, 4:48 PM UTC

zie wrote: post #334

orangepurple wrote: post #140

Quoted post unavailable.

If you care this much about inflation, you should calculate your own personal inflation rate(PIR). It will be different than CPI, because what you buy and what CPI tracks won't be the same. Regardless, your own personal inflation rate will have actual meaning to you. My PIR in 2021 was 1.6%. So far in 2022 it's gone up to 6.8%.

Sounds like you should put down the Coke. ;-)

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#346

Post by gre » Thu, Nov 10, 2022, 4:49 PM UTC

hnburnsy wrote: post #94

Anyone notice that brand name soda (looking at you Coke) has increased almost 100% while the generic/house brand has had slight increases. I feel like Coke is testing the pricing limits of its customers especially with the smaller packaging and these prices will not come back down.

What is inflation if not the capitalists raising prices?

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#347

Post by concordDance » Thu, Nov 10, 2022, 4:50 PM UTC

dlp211 wrote: post #249

tomcam wrote: post #213

Earlier quoted context omitted.

And by “free” we mean “added to the gigantic mountain of debt our children must pay off“

This is not how the national debt works.

You thinking inflated away or a default? Because those who have bought treasury bills are expecting that money in a few years.

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#348

Post by nightski » Thu, Nov 10, 2022, 4:50 PM UTC

Looking at the macro picture is so misleading. The only categories that are really down are natural gas, used cars & trucks, and apparel. Everything else is up but it is being masked by the huge drop in natural gas prices (which is due to the situation in Europe).

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#349

Post by Jerrrry » Thu, Nov 10, 2022, 4:52 PM UTC

tomcam wrote: post #213

Jerrrry wrote: post #205

Earlier quoted context omitted.

Please explain how literally directly increasing the M1 money supply doesn't cause inflation. Everyone got money for free. Things that are free, tend to have less value.

And by “free” we mean “added to the gigantic mountain of debt our children must pay off“

The government that printed the money was supposed to reduce the money supply, while capturing productivity from more profitable industries, effectively neutering the difference. Turns out it is easier to print money than to burn it.

The Fed is trying to command the economy, but ultimately people must be more productive for a little less. QE easing and asset deflation have some part, but unemployment must increase, or we simply won't have the "strong labor market" that increased productivity requires. We don't have the sentiment or confidence, and that is going to be devastating if not quickly corralled - inflation can lead to hyperinflation exponentially.

Not for the USD - we have control of the world's economy - which is why the MIC complex and foreign policy is actually an investment in the largest scale.

That difference, between productivity gains and captured output, is the price our future generations pay (in inflation) for continuity _now_. But it isn't fair to push such a can down the road. Things need to pop sooner rather than later, and the Fed would like a "soft landing" - no pop, which may not be possible at this point.

Re: US annual inflation declines to 7.7% in October vs. 7.9% expected

#350

Post by patall » Thu, Nov 10, 2022, 4:55 PM UTC

cko wrote: post #113

keewee7 wrote: post #14

It's a bit higher in Denmark and I have a little too much stored as fiat in the bank. What is a safe asset to store value while inflation is >10% in a developed country?

Depends on your time horizon. In the very short term, inflation linked bonds as other comments mention. In the 15+ year bracket, probably equities. Perhaps real estate at a low mortgage rate but it's not very diversified. Gold is commonly touted as an inflation hedge, but that's over a much longer time horizon, probably longer than most people are alive. In the end it really depends on the cause of inflation - expect…

Is gold still the inflation hedge? One the one hand yes, but if i.e SpaceX starship is a total success, asteroid mining could be the black swan for that. Though I may be totally wrong (and off by orders of magnitude) about that.