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I don't understand why people think that super inflation will lead to a food shortage. Thus I don't see a need op stock up.
Hi NJBest,
A shortage is one cause of super inflation. It may also be they are printing lots of it, but that is usually to buy something that is in short supply. The shortages is what often creates the feedback loop. Once the currency is no longer trusted, transaction costs will sky rocket and production may indeed slow to make it worse. You definitely would want to be the one with food goods during super inflation. However the problem with this fear is that it is actually quite rare.
Now in my case, I already benefit since most of what I know about survival saves me money now. I recently juiced some mulberries. The same technique that would be used to save the juice from spoilage without refrigeration or pasteurization will give me some nice hard cider that I would rather have than a $15 bottle of wine. Instead of a reactionary fear, I am living high on the hog for the cost of spending a little time in nature.
According to the Federal Reserve Bank of Cleveland, the median Consumer Price Index rose 0.1% (1.7% annualized rate) in June. The 16% trimmed-mean Consumer Price Index increased 0.1% (1.2% annualized rate) during the month. The median CPI and 16% trimmed-mean CPI are measures of core inflation calculated by the Federal Reserve Bank of Cleveland based on data released in the Bureau of Labor Statistics' (BLS) monthly CPI report.
Earlier today, the BLS reported that the seasonally adjusted CPI for all urban consumers fell 0.2% (-2.6% annualized rate) in June. The CPI less food and energy increased 0.3% (3.1% annualized rate) on a seasonally adjusted basis.
Over the last 12 months, the median CPI rose 1.6%, the trimmed-mean CPI rose 2.0%, the CPI rose 3.6%, and the CPI less food and energy rose 1.6%
One of the nice things about frugality, is that the frugal do not fear inflation or other apocalypse theories. We have learned to do without things, and can learn to do without more.
You don't have a single clue what you're talking about, do you?
The term "Real inflation" does not exist in economics.
It is abundantly clear from the context, that what he meant by "real inflation" was general, classical inflation (which does exist in economics) as opposed to "cost inflation", which also exists in economics, and is not "real" inflation.
Cost inflation is when the value of the money remains constant, but cost of things rises, to enable the rich to get richer, but not the workers, or to import increasingly expensive commodities from more successful economies, both of which are happening in the USA today. "Real" inflation is when the value of the currency declines, so wages and prices remain in step while the numbers get bigger.
Back in the 70's we had similar fears. It was predicited there would be shortages of coffee, toilet paper, and sugar. so, my mother stocked up on all 3, everytime there was a sale, etc. she stored them in the basement.
Then, after a rain, we had a flooded basement. do you have any idea what a 10-year supply of coffee, sugar, and toilet paper looks like floating in the basement, up to the stairs? My Dad was spewing phrases he'd learned in algiers during the war (nice to have a parent fluent in French!)
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My Dad was spewing phrases he'd learned in algiers during the war (nice to have a parent fluent in French!)
