Inflation on the Way

[Treeshepherd]

Well, so far this OP has been wrong.
Energy and food prices are dropping not increasing. This is good for the US's consumer driven economy.
About the only thing that is hurting some is Wall Street. But considering that when Wall Street was on a roll, that roll didn't trickle down to the working class, which just happens to make up the largest segment of the consumer class. So the deflation we are going through is helping more Americans than were being helped by the Wall Street surges.
In a sense, the working class is finally getting a raise.
Falling Food and Gas Prices Stoke Consumer Confidence
http://www.nytimes.com/2014/12/13/b...as-prices-stoke-consumer-confidence.html?_r=0

Energy prices aren't dropping due to any type welfare program for the working class. OPEC's time to go away as a major player in the futures markets killing global economies along the way. Overdue. Of course with energy prices dropping, food delivery costs are coming down.

However, similar events happened this way in 2007.....look at Ivan, China. Global meltdown on the way ?

Energy prices are falling due to a glut in the marketplace. Everybody is pumping, and oil-burning machines are becoming more efficient.

Yes, a global meltdown is already underway. But I think the USA is actually sitting pretty. We've got a relatively low population, and relatively few environmental problems. We've got an opiated television/video game consuming population that will only go to a protest in order to take a selfie, so we have relatively little civil unrest. We've got the best farmland in the world. Our military and covert forces are hell-bent on thrashing our competition. Low energy prices and stagnated wages are actually spurring a manufacturing revival.

From a purely Machiavellian point of view, the USA is fairly well off, or at least stable. In a globalized economy, everything is relative.

 

[kiwiman127]

Well, so far this OP has been wrong.
Energy and food prices are dropping not increasing. This is good for the US's consumer driven economy.
About the only thing that is hurting some is Wall Street. But considering that when Wall Street was on a roll, that roll didn't trickle down to the working class, which just happens to make up the largest segment of the consumer class. So the deflation we are going through is helping more Americans than were being helped by the Wall Street surges.
In a sense, the working class is finally getting a raise.
Falling Food and Gas Prices Stoke Consumer Confidence
http://www.nytimes.com/2014/12/13/b...as-prices-stoke-consumer-confidence.html?_r=0

Energy prices aren't dropping due to any type welfare program for the working class. OPEC's time to go away as a major player in the futures markets killing global economies along the way. Overdue. Of course with energy prices dropping, food delivery costs are coming down.

However, similar events happened this way in 2007.....look at Ivan, China. Global meltdown on the way ?

"Energy prices aren't dropping due to any type welfare program for the working class" I never said that was the reason energy prices were dropping, however I did say the because the prices of energy and the ripple effect on food prices dropping is a gift for the working class, after decades of flat wage growth.
The working class/middle class has been getting soooo fucked over, they deserve a break and they deserve more breaks.

 

[kiwiman127]

Financialization may be defined as: "the increasing dominance of the finance industry in the sum total of economic activity, of financial controllers in the management of corporations, of financial assets among total assets, of marketised securities and particularly equities among financial assets, of the stock market as a market for corporate control in determining corporate strategies, and of fluctuations in the stock market as a determinant of business cycles" (Dore 2002)

The financial sector of the US economy has become an ever-increasing slice of the pie in recent decades. Finance just doesn't create the number of jobs as the other sectors, like manufacturing or agriculture. While it remains more profitable to start a hedge fund than to start a widget factory, trickle down economics is not going to be very effective.

Also, the financial sector is fueled more than other sectors by debt and inflation, and the game of inflating our nation out of debt. If the value of the dollar plummets, it makes our $17 trillion national debt look less terrible. Of course, while these gimmicks are all well and good for Wall Street, they are less aligned with the interests of Main Street. To the average consumer, a shrinkage in GDP could merely be a reflection of lower prices for the goods and services he requires. Growth in GDP is often a simple factor of inflation.

So, Main Street is getting shafted. The Political Class protects the interests of Wall Street, but who protects the Political Class? In order to buy allegiances, we see the rise of the Praetorian Class. Steadily, the Praetorian Class overtakes the Middle Class, until such time that the entire scheme starves itself out.

"The emergence and rise of the Praetorian Class is a common observation in societies that have transitioned from market-based meritocracies to societies governed by coercive syndicates formed by the Political Class. The Praetorian Class is formed and grown to defend the Political Class and in time becomes the dragon that rules its master. It represents a highly disturbing trend because it foretells the decline, not the advance, of a society. In some instances, the decline is peaceful, clearing the path for an improved future. Unfortunately, in many instances that is not the case. The Political Class leverages the full force of the Praetorian Class representing significant loss in wealth, personal freedom and, in many cases, human life."
The Rise of the Praetorian Class Casey Research

Hey, thanks for the link. I actually read that article a couple years ago. Interesting stuff and also scary.

 

[Delldude]

Well, so far this OP has been wrong.
Energy and food prices are dropping not increasing. This is good for the US's consumer driven economy.
About the only thing that is hurting some is Wall Street. But considering that when Wall Street was on a roll, that roll didn't trickle down to the working class, which just happens to make up the largest segment of the consumer class. So the deflation we are going through is helping more Americans than were being helped by the Wall Street surges.
In a sense, the working class is finally getting a raise.
Falling Food and Gas Prices Stoke Consumer Confidence
http://www.nytimes.com/2014/12/13/b...as-prices-stoke-consumer-confidence.html?_r=0

Energy prices aren't dropping due to any type welfare program for the working class. OPEC's time to go away as a major player in the futures markets killing global economies along the way. Overdue. Of course with energy prices dropping, food delivery costs are coming down.

However, similar events happened this way in 2007.....look at Ivan, China. Global meltdown on the way ?

"Energy prices aren't dropping due to any type welfare program for the working class" I never said that was the reason energy prices were dropping, however I did say the because the prices of energy and the ripple effect on food prices dropping is a gift for the working class, after decades of flat wage growth.
The working class/middle class has been getting soooo fucked over, they deserve a break and they deserve more breaks.

And I bet someone has OPEC in their cross hairs....

 

[jwoodie]

Bush was the most inflationary president in our lifetime. Obama killed inflation, flatlining it during his administration.

Other than retarding the U.S. (and European) economic recovery, which of Obama's policies have "killed inflation?" Take your time...

 

[Treeshepherd]

'Obama killed inflation'. That has to be the most gay economic assessment that I have ever heard. I guess Obama must have pushed the easy button that slows inflation. It couldn't be due to market saturation.

Obama-Yellen are attempting to stimulate inflation. Nothing would please them more than inflation. Rather, nothing would be more pleasing to their puppet masters.

By the way, there are only 3 more shopping days before Xmas. Max out your credit. Do whatever it takes to satisfy the greedy addictions of your beneficiaries. The economy depends on ever increasing levels of insanity to remain sustainable.

 

[Delldude]

'Obama killed inflation'. That has to be the most gay economic assessment that I have ever heard. I guess Obama must have pushed the easy button that slows inflation. It couldn't be due to market saturation.

Obama-Yellen are attempting to stimulate inflation. Nothing would please them more than inflation. Rather, nothing would be more pleasing to their puppet masters.

By the way, there are only 3 more shopping days before Xmas. Max out your credit. Do whatever it takes to satisfy the greedy addictions of your beneficiaries. The economy depends on ever increasing levels of insanity to remain sustainable.

Don't you think with all the money floated out globally, inflation could get terribly Carter when the dollars start to come back?

 

[Toro]

Inflation fell this month.

 

[Judicial review]

The use of Keynesian Economics causes inflation.

Inflation isn't by itself a bad thing for an economy, it depends on what level of inflation you're talking about.

Really? How does a 15% national interest rate sound to you?

 

[Delldude]

Inflation fell this month.

What of all those printed dollars out there?

 

[Treeshepherd]

Inflation fell this month.

What of all those printed dollars out there?

I've looked at that possibility. What I think is this; the rest if the world is thrashed. If you're a millionaire in Dubai, or Russia, or Carlos Slim in Mexico, where are you going to put your money to work? You're going to put it into America, because the rest of the world is thrashed.

 

[SteadyMercury]

Really? How does a 15% national interest rate sound to you?

Sounds bad, not that it has anything to do with my statement that inflation isn't necessarily bad.

 

[Judicial review]

Really? How does a 15% national interest rate sound to you?

Sounds bad, not that it has anything to do with my statement that inflation isn't necessarily bad.

They are connected. When inflation hits you will see those kind of interest rates. Inflation is a bad thing.

 

[william the wie]

Inflation is unlikely until energy prices stabilize

 

[SteadyMercury]

They are connected. When inflation hits you will see those kind of interest rates. Inflation is a bad thing.

Correction = high inflation is a bad thing

 

[Toro]

Inflation fell this month.

What of all those printed dollars out there?

They're going into asset markets.

There's no consumer price inflation.

 

[william the wie]

Inflation fell this month.

What of all those printed dollars out there?

They're going into asset markets.

There's no consumer price inflation.

But commodity deflation seems likely to continue.

 

[SteadyMercury]

But commodity deflation seems likely to continue.

Commodity is a pretty broad term, everything from oil to coffee to iron to beef.

I know oil is down, and beef is up.

 

[KissMy]

But commodity deflation seems likely to continue.

Commodity is a pretty broad term, everything from oil to coffee to iron to beef.

I know oil is down, and beef is up.

Beef is only up because it lags droughts & corn price by over 4 years due to life-cycle of cows. Chicken prices cycle much faster.

 

[william the wie]

But commodity deflation seems likely to continue.

Commodity is a pretty broad term, everything from oil to coffee to iron to beef.

I know oil is down, and beef is up.

Beef is only up because it lags droughts & corn price by over 4 years due to life-cycle of cows. Chicken prices cycle much faster.

Other commodities are still very near their lows despite today's uptick also when Russia gets out of embargo their grain and beef lands are bigger and better than ours. Since that is about all Russia can export expect a big uptick in production for both.