Food Prices

Food prices are going up due to bubbles bursting in other classes of assets, Real Estate, Bonds, with a flight to commodities. It's a blip now compared to could happen if Treasuries crash.

No they would not: They would get out of Treasuries—supposedly the “safest” investment there is—and get into something even safer—something even more tangible: Actual commodities. Not ETF’s, not even futures (or anything else that entails counterparty risk)—sellers of Treasuries would get into actual, hard commodities. Because if suddenly even the safest of all investment vehicles is now unsafe, do you really want to get behind the wheel of an even more unsafe vehicle, like stocks or corporate bonds or ETF’s? I mean, c’mon: If Treasuries crash, what else might crash?

That’s why people in a Treasury panic would buy commodities. This ballooning of non-perishable commodities would be as a means to store value. Because that’s what people do in a panic—they batten down the hatches, and go into what’s safest. When the stock markets tanked in the Fall of ’08, where did all that sellers’ cash go? To Treasuries—because it was then considered the safest store of value. Commodities suffered in comparison—gold took a bit of a hit, as did the other precious metals—but Treasuries ballooned as the equities markets tanked.

But if Treasuries—the ultimate store of value—now tanked? If the last sure-thing in paper-based stores of value took a hit, where would people go to both store value, and have ready access to that value?

Commodities. And this rush to commodities, I argued, would trigger hyperinflation.

Now, I said I would answer two questions—one was why commodities would outpace all other asset classes in a Treasury panic and subsequent hyperinflation. The other question was, “Where’s all the dough to feed my fireplace gonna come from, in a hyperinflationary event?”

The first wave of dollars in a hyperinflationary event will come from people’s savings accounts.

If Treasuries tank, and the markets all barrel into commodities, then prices will rise for regular consumers—this should not be a controversial inference. What would consumers do, with suddenly much higher gas prices, and soon much higher food prices? Simple: They’ll bust open their piggy banks, whatsoever those piggy banks might happen to be: 401(k)s, whatever equities they might have, etc.

But if the higher consumer prices continue—or become worse—what will happen to the 320 million American consumers? They’ll start buying more gas now, rather than wait around for tomorrow—and the market will react to this. How? Two way: Prices of commodities will rise even further—and asset prices will fall even lower.


Hyperinflation, Part II: What It Will Look Like - Truth is Treason
 
Yeah such demand to drill wells, I have been waiting over 3 years for a driller to drill a well on y property.
 
Food prices are going up due to bubbles bursting in other classes of assets, Real Estate, Bonds, with a flight to commodities. It's a blip now compared to could happen if Treasuries crash.

No they would not: They would get out of Treasuries—supposedly the “safest” investment there is—and get into something even safer—something even more tangible: Actual commodities. Not ETF’s, not even futures (or anything else that entails counterparty risk)—sellers of Treasuries would get into actual, hard commodities. Because if suddenly even the safest of all investment vehicles is now unsafe, do you really want to get behind the wheel of an even more unsafe vehicle, like stocks or corporate bonds or ETF’s? I mean, c’mon: If Treasuries crash, what else might crash?

That’s why people in a Treasury panic would buy commodities. This ballooning of non-perishable commodities would be as a means to store value. Because that’s what people do in a panic—they batten down the hatches, and go into what’s safest. When the stock markets tanked in the Fall of ’08, where did all that sellers’ cash go? To Treasuries—because it was then considered the safest store of value. Commodities suffered in comparison—gold took a bit of a hit, as did the other precious metals—but Treasuries ballooned as the equities markets tanked.

But if Treasuries—the ultimate store of value—now tanked? If the last sure-thing in paper-based stores of value took a hit, where would people go to both store value, and have ready access to that value?

Commodities. And this rush to commodities, I argued, would trigger hyperinflation.

Now, I said I would answer two questions—one was why commodities would outpace all other asset classes in a Treasury panic and subsequent hyperinflation. The other question was, “Where’s all the dough to feed my fireplace gonna come from, in a hyperinflationary event?”

The first wave of dollars in a hyperinflationary event will come from people’s savings accounts.

If Treasuries tank, and the markets all barrel into commodities, then prices will rise for regular consumers—this should not be a controversial inference. What would consumers do, with suddenly much higher gas prices, and soon much higher food prices? Simple: They’ll bust open their piggy banks, whatsoever those piggy banks might happen to be: 401(k)s, whatever equities they might have, etc.

But if the higher consumer prices continue—or become worse—what will happen to the 320 million American consumers? They’ll start buying more gas now, rather than wait around for tomorrow—and the market will react to this. How? Two way: Prices of commodities will rise even further—and asset prices will fall even lower.


Hyperinflation, Part II: What It Will Look Like - Truth is Treason

You're scaring me.
 
You should be scared.

The monetary and fiscal policies of our government are Totally Whack.
 
Okay, so I am no economic genius, but I go grocery like anyone else. The price of food has been extremely unstable here, but has mostly been going up. E.g., ground round went from $2.29 lb last week on sale to $3.39 lb this week, with ground sirloin at $5.49 lb. Similar things have been happening with bread, milk, eggs and cereal.....semi-reasonable sale prices coupled with VERY high "normal" prices.

So I have a few questions.

WTF is going on? I thought we had "almost no inflation"? I might not have all these prices memorized, but I know cereal's normal price has doubled in a year....and for sure, all the rest are up steeply.

Has there been some sort of agricultural warfare I haven't heard about? Why's this price increase affecting the basics, but evidentially not such things as cheese, yogurt, or ice cream?

WTF pays $5.49 for ground sirloin? I'm not sure I'd pay that much for a decent lamb chop.

When prices for gas were declining were you calling for an investigation into "price gouging"?
No?
Then STFU.
It's called a market. Don't like it? Don't buy it or shop somewhere else.
 
No, it is not.

The Government reported GDP growth rate is adjusted for a bogus definition of inflation used by the government, but it provides an overly optimistic view.
 
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Okay, so I am no economic genius, but I go grocery like anyone else. The price of food has been extremely unstable here, but has mostly been going up. E.g., ground round went from $2.29 lb last week on sale to $3.39 lb this week, with ground sirloin at $5.49 lb. Similar things have been happening with bread, milk, eggs and cereal.....semi-reasonable sale prices coupled with VERY high "normal" prices.

So I have a few questions.

WTF is going on? I thought we had "almost no inflation"? I might not have all these prices memorized, but I know cereal's normal price has doubled in a year....and for sure, all the rest are up steeply.

Has there been some sort of agricultural warfare I haven't heard about? Why's this price increase affecting the basics, but evidentially not such things as cheese, yogurt, or ice cream?

WTF pays $5.49 for ground sirloin? I'm not sure I'd pay that much for a decent lamb chop.

When prices for gas were declining were you calling for an investigation into "price gouging"?
No?
Then STFU.
It's called a market. Don't like it? Don't buy it or shop somewhere else.

Yeah, this is the solution. Shut up. Don't ask questions. For sure, never question business.

 
Okay, so I am no economic genius, but I go grocery like anyone else. The price of food has been extremely unstable here, but has mostly been going up. E.g., ground round went from $2.29 lb last week on sale to $3.39 lb this week, with ground sirloin at $5.49 lb. Similar things have been happening with bread, milk, eggs and cereal.....semi-reasonable sale prices coupled with VERY high "normal" prices.

So I have a few questions.

WTF is going on? I thought we had "almost no inflation"? I might not have all these prices memorized, but I know cereal's normal price has doubled in a year....and for sure, all the rest are up steeply.

Has there been some sort of agricultural warfare I haven't heard about? Why's this price increase affecting the basics, but evidentially not such things as cheese, yogurt, or ice cream?

WTF pays $5.49 for ground sirloin? I'm not sure I'd pay that much for a decent lamb chop.

When prices for gas were declining were you calling for an investigation into "price gouging"?
No?
Then STFU.
It's called a market. Don't like it? Don't buy it or shop somewhere else.

Yeah, this is the solution. Shut up. Don't ask questions. For sure, never question business.


When commodity prices go down do you call for investigations? Or do you assume there are market forces that control prices?
 
I just filled up my car today @ E1.20 per Ltr. that works out about $5.75 per US gallon
 
Okay, so I am no economic genius, but I go grocery like anyone else. The price of food has been extremely unstable here, but has mostly been going up. E.g., ground round went from $2.29 lb last week on sale to $3.39 lb this week, with ground sirloin at $5.49 lb. Similar things have been happening with bread, milk, eggs and cereal.....semi-reasonable sale prices coupled with VERY high "normal" prices.

WTF pays $5.49 for ground sirloin? I'm not sure I'd pay that much for a decent lamb chop.

What's your problem? You're on welfare, and get food stamps - the state pays everything for you. Get a job than complain.
 
No, it is not.

The Government reported GDP growth rate is adjusted for a bogus definition of inflation used by the government, but it provides an overly optimistic view.

You are splitting hairs. GDP is by definition adjusted for inflation. Using the CPI as the inflation index. Not the core index that excludes food and energy costs but the complete index.

I realize that the CPI has been watered down replacing steak with hamburger and appraising additional value to comparable items etc.

But it is still an inflation adjustment all the same.
 
No it's not.

GDP is not adjusted for inflation. The government calculates two verisons, nominal and Real GDP. They are not always clear about which version they are using; nor do they calculate growth with proper year over year comparative method.
 
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No it's not.

GDP is not adjusted for inflation. The government calculates two verisons, nominal and Real GDP. They are not always clear about which version they are using; nor do they calculate growth with proper year over year comparative method.

1535501.jpg
 
butter 2.19 a lb

milk 3.39 a gal

i see prices going up .... nc is a leading pork producer so we can get pork pretty cheap

seafood has gone sky high....wild caught shrimp 13.99 a lb
 
No it's not.

GDP is not adjusted for inflation. The government calculates two verisons, nominal and Real GDP. They are not always clear about which version they are using; nor do they calculate growth with proper year over year comparative method.

splitting hairs.

GDP that isn't adjusted for inflation is useless data.
 
I think its only going to get worse. Prices have gone crazy here too. A gallon of gasoline here is between 2.95 to 3.10
 

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