"serious" inflation comming, per Wal Mart.... (bankruptcy, property tax, property)
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I see folks are once again confusing sector specific (energy) price shocks with inflation. Inflation only occurs when wages are rising faster than the increase in availability of consumer goods. Do you see that happening? I don't. The price of people's biggest outlay, housing, is in fact coming down.
I see folks are once again confusing sector specific (energy) price shocks with inflation. Inflation only occurs when wages are rising faster than the increase in availability of consumer goods. Do you see that happening? I don't. The price of people's biggest outlay, housing, is in fact coming down.
The inflation now would be in consumables, not housing. Good for home buyers, not good for sellers. So a seller loses a lot on housing (even though it was once inflated) at the same time that consumables costs are inflating in relation to wages. Not a good scene for those folks. If housing were climbing along with consumables, maybe things wouldn't be so bad (? just wondering) at least for one segment (homeowners).
I see folks are once again confusing sector specific (energy) price shocks with inflation. Inflation only occurs when wages are rising faster than the increase in availability of consumer goods. Do you see that happening? I don't. The price of people's biggest outlay, housing, is in fact coming down.
debt monetization (printing money) is INTENDED to cause inflation.
Last edited by floridasandy; 04-04-2011 at 05:53 AM..
The price of people's biggest outlay, housing, is in fact coming down.
Yeah, that is working for our household REAL well. When it comes to shopping we pick our price.
But that is not the intent of the bankers. Look at all the zombie banks with REO being kept alive to keep all the back-logged foreclosed Real Estate from hitting the market and driving the price down further.
The inflation maker models -- QE as it is called -- is intended to pump-up or "inflate" the deflated balloon of overpricing.
Real Deal -- a big part of what we all pretend to hold our wealth in is Real Estate and Housing -- as you said -- People's biggest outlay -- AND The Real Estate / Housing in the US is/was never worth what it pretended to be.
It aint, and we aint "all that."
So now we are printing bad checks (paper money) to cover it.
Thanks for proving my point that a central bank's influence doesn't end at a nation's borders.
That isn't proving your point, the only reason China is effected by US monetary policy is because it is essentially pegging its currency to the dollar. If China removed its peg it would no longer import US monetary policy.
My claim is not that US monetary policy has no effect on the rest of the world, just that the rest of the world is not at the whim of the Fed. The Fed can't control the global economy.
Quote:
Originally Posted by missed
You're not listening. Demand hasn't increased for Snickers bars, but they cost 5X as much as they did 20 years ago and people are willing to pay that much for them.
You're not thinking about this very hard... You can't speak about Demand without also talking about price, Demand doesn't exist in a vacuum. That is, its Demand at some particular price. Demand for Snickers bars has most certainly increased, just at the original price. Indeed, its because of increased demand that the price has gone up. Don't think so? Price Snickers bars at $.10 and see them fly off the shelf.
Supply/Demand determine price in free-market economies, your suggestion otherwise is just bizarre. Increasing the money supply increases costs because it increases demand at the original price point, that is, you have more dollars chasing the same number of products.
Just go to any fast food or restaurant. You used to be able to buy a number 1, 2, 3, etc. at McDonalds for around $4-$6. Now they are all pretty much $6 and up. I used to be able to pick up what I needed for groceries for around $30-$45, now it gets to be around $75. And this is just over the last 5 years or so.
As far as property taxes, all I'm seeing is assessed values going down, but the tax rate going up. So overall the property taxes are still staying about the same as they have for the last few years.
Inflation only occurs when wages are rising faster than the increase in availability of consumer goods. Do you see that happening? I don't.
This is what's going to moderate "inflation". Probably two inflationary pressures: the fuel price shocks + QE. The inflation--or price rises---we are presently seeing is the pass-along of higher energy costs to the consumers. This is different than that wage-price spiral situation, which I agree is unlikely considering were we are in employment/unemployment numbers.
The inflationary effects of QE are yet to be seen, I think.
Food costs have gone up a lot, user id, by largely invisible means. New the last few years, ice cream not in half gallons, but in 1.75 quart containers at the same price, an increase of 14% (charging for 7 pounds at an 8 pound price point). Candy bars did the same, in little incremnets, .05 af an ounch at a time-5 times, now charging as a "extra large" what used to be smaller then the only size. Soda, cakes and pies, pasta, bread, etc, have all used this same trick.
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