Is it Really Inflation?

[saltandsand]

It's not inflation, it's called GREED, plain old American style greed.

I just drank my last cup of coffee from the company cafeteria. They've jacked up prices twice in a year. A muffin and small java was $3.50 this morning...good golly they've lost their mind.

So I refuse to buy from them anymore. This is going to be a good thing. I'll be getting up earlier and eating breakfast with my kids every morning instead of once or twice a week. So, starting tomorrow my son and I will have more time to talk about/plan fishing trips.

Brings me to the next point. Gas prices are sky high, eating while on the road is the same. Greed, greed, greed....it's everywhere. Road trips are becomming costly.

Fishing at the Point cuts on gas costs but raises your blood pressure when the raucious crowds show up. I suppose the question is what's the target? Which is it: reducing financial costs or having a nice relaxing, stress reducing fishing time?

Seems that those who took out mortgages that they couldn't pay are getting the help they need...I suppose I'll check my overly responsible self and spend more money while maintaining a focus on stress-reducing fun. I owe to myself so that I may live longer to pay more inflated prices and bail out yet another irresponsible soul.

[sprtsracer]

It's not inflation, it's called GREED, plain old American style greed.

I just drank my last cup of coffee from the company cafeteria. They've jacked up prices twice in a year. A muffin and small java was $3.50 this morning...good golly they've lost their mind.

So I refuse to buy from them anymore. This is going to be a good thing. I'll be getting up earlier and eating breakfast with my kids every morning instead of once or twice a week. So, starting tomorrow my son and I will have more time to talk about/plan fishing trips.

Brings me to the next point. Gas prices are sky high, eating while on the road is the same. Greed, greed, greed....it's everywhere. Road trips are becomming costly.

Fishing at the Point cuts on gas costs but raises your blood pressure when the raucious crowds show up. I suppose the question is what's the target? Which is it: reducing financial costs or having a nice relaxing, stress reducing fishing time?

Seems that those who took out mortgages that they couldn't pay are getting the help they need...I suppose I'll check my overly responsible self and spend more money while maintaining a focus on stress-reducing fun. I owe to myself so that I may live longer to pay more inflated prices and bail out yet another irresponsible soul.

Hey...look at the bright side! First, and most important, you get to spend more time with your kids!!! Second, the $3.50 X 12 = $42 you can spend on fishing equipment each month to take your kid fishing and/or spend on gas to go further to get away from the "raucous" crowds! The purpose is not to get stressed but to get away from stress. See...ain't so bad after all!

[saltandsand]

Hey...look at the bright side! First, and most important, you get to spend more time with your kids!!! Second, the $3.50 X 12 = $42 you can spend on fishing equipment each month to take your kid fishing and/or spend on gas to go further to get away from the "raucous" crowds! The purpose is not to get stressed but to get away from stress. See...ain't so bad after all!

That's exactly where I was thinking... I'm glad they raised the price to where I'm no longer buying their goods...better things to do with the time and money!! :):fishing::)

[saltandsand]

Here's an idea to combat inflation, or at least give an impression that it's being deflated...

get rid of pennies, nickles and dimes... they are worthless anyway... quarters and dollars is all we need. :D

[rattler]

please send me all your change, I will find a good use for it...like rent, food, etc...PM for the address...

[shaggy]

Could be worse I figure, and don't think it's greed:

Worldwide gas prices:

Netherlands Amsterdam $6.48
Norway Oslo $6.27
Italy Milan $5.96
Denmark Copenhagen $5.93
Belgium Brussels $5.91
Sweden Stockholm $5.80
United Kingdom London $5.79
Germany Frankfurt $5.57
France Paris $5.54
Portugal Lisbon $5.35
Hungary Budapest $4.94
Luxembourg $4.82
Croatia Zagreb $4.81
Ireland Dublin $4.78
Switzerland Geneva $4.74
Spain Madrid $4.55
Japan Tokyo $4.24
Czech Republic Prague $4.19
Romania Bucharest $4.09
Andorra $4.08
Estonia Tallinn $3.62
Bulgaria Sofia $3.52

SO, we aint the most expensive when it comes to gas, but, with gas prices up, cost to ship goods increases, thus, coffee prices increase. Go to yer local supermarket, the price per pound of java has increased dramatically in the past year, and probably will continue. If not mistaken, coffee is the second highest commodity behind petroleum. Anyhow, cost of doin business is first covering costs, then making a profit. The ability to do this either makes shareholders of public companies very happy, or one sees a shareholder revolt, demanding changes in management. The companies first concern is the "owners", then the consumer.

Have Jeep will travel :D

[stupidjet]

and those numbers should be per liter, not gallons, correct?

[shaggy]

and those numbers should be per liter, not gallons, correct?

Nope from report per gallon, US dollar

Have Jeep will travel :D

Oh, and prices from 06, latest I could find. Dollar has weakened, so many may be more dramatic in USD comparison.

[shaggy]

Latest news:

SINGAPORE - Oil prices broke through a new intraday high of $102 a barrel Wednesday as a slide in the U.S. dollar prompted investors to pump more money into energy futures as a hedge against inflation.
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The dollar sank to a record low against the euro after the release of three disheartening U.S. economic reports Tuesday that show that the economy is slowing as prices for consumer goods rise. The dollar's decline prompted investors to seek a safe haven from turmoil in the financial markets and the threat of inflation.

"Crude has cracked through the $100-level again and that's driven by financial investors moving money into commodities markets," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

So, it appears neither inflation or greed, but the possibility of recession at worst, stagflation at best. Weaker US dollar means we pay more US dollars for imported goods. Once again, as some did with the sub-prime mortgages, we could blame Wall Street for hedging on the oil commodity futures, thus driving up the price per barrel, or maybe they are just semi-wealthy individuals, who see a risk reward return on investment to make the decision seem with little downside risk.

Have Jeep will travel :D

Oh smaller folks may be able to reap some returns by buying into companies such as Exxon/Mobil or Valero.

Note, under the SEC disclosure rule, I neither work for, or currently hold investments in either company. And, must add, past performance is no guarantee as to future returns, so only monies one can safely lose should be invested.

[saltandsand]

Well some of this is true, and then maybe not. According to one source wholesale inflation shot up in 2007 by the largest amount in 26 years even though falling gasoline costs allowed price pressures to moderate in December. http://www.rawstory.com/news/mochila/Whole_prices_up_by_6_3_percent_last_01152008.html

So I know how we can fix this...we can lower the Fed funds rate to a negative amount; thus your tax dollars will stimulate the economy by subsidizing the lending between banks...after all it'll help support all their wonderful lending decisions like writing no document, no job required mortgages *a real smart move indeed*.

With rate reductions you pay twice, the other way is with the loss of purchasing power. A growing list of economic reports suggest stagflation is becoming a serious threat, and the Fed may have to choose whether to keep cutting rates to stimulate the economy, or halt rate reductions to cool off inflation.

If they stop the senseless rate reductions the non-competitive companies will have trouble and jobs will be lost. Recessionary trends will set in and loss of value within equities will further inhibit growth, compounding job loss. While culling away the non-competitive companies is good for the long-term, we are at a point where the short-term cost is prohibitive.

We've got some serious problems here, caused by decades of lazy, self absorbed thinking, gluttoneous spending, and over extension of our resources. I hope we can avert serious economic pressure to re-write laws wholesale.

[shaggy]

4am this day:

WASHINGTON - "Federal Reserve Chairman Ben Bernanke is giving Congress a fresh assessment of the country's economic health, which has been pummeled by a housing bust, a credit crunch and soaring energy prices.

Back-to-back appearances on Capitol Hill were scheduled to begin Wednesday for Bernanke, who is facing his biggest challenges yet in his two years at the Fed's helm.

Bernanke, testifying before the House Financial Services Committee, was expected to signal another cut in a key interest rate, despite fresh evidence that inflation is picking up. Since September, the Fed has been lowering its key rate, which now stands at 3 percent. Economists are predicting another reduction at the Fed's next meeting, on March. 18.

The government reported Tuesday a sharp increase in wholesale prices. That followed a big increase in prices paid by consumers.

At the same time, the economy is losing speed, raising the specter that stagflation is brewing. That's a dreaded mix of stagnant economic activity, rising prices, lagging wages and higher unemployment — something the country hasn't seen since the 1970s.

The Fed's mission is to nurture economic growth, while keeping inflation under control. With fears growing that the economy is headed for a recession — if it hasn't toppled into one already, the Fed has been focusing on shoring up the economy through interest rate reductions."

Agree things don't look rosy presently, but don't think a rate cut is the cure. We need to watch spending, as the deficit grows, the dollar will only further weaken. Rate cuts are great for those that can benefit from them, but isn't that where many "sub-prime" borrowers were able to get loans? Thus money more readily available in time of, or just prior to a recession. Some that get these loans, may not now know, but may lose thier jobs, thus raising mortgage defaults once again.

A strong dollar is the better answer, yet the question remains, how do we strengthen the dollar?

Have Jeep will travel :D

Oh and link did not open story. Just home page, would like to read it can ya pm or email it to me?

[saltandsand]

Agree things don't look rosy presently, but don't think a rate cut is the cure. We need to watch spending, as the deficit grows, the dollar will only further weaken. Rate cuts are great for those that can benefit from them, but isn't that where many "sub-prime" borrowers were able to get loans? Thus money more readily available in time of, or just prior to a recession. Some that get these loans, may not now know, but may lose thier jobs, thus raising mortgage defaults once again.

A strong dollar is the better answer, yet the question remains, how do we strengthen the dollar?

Oh and link did not open story. Just home page, would like to read it can ya pm or email it to me?

A strong dollar would be the dream cure....don't think it's likely unless Europe comes to its senses and pays tribute for our continual bailing of their butts outta war and threat of war.... not likely either. Strap in tight it's gonna be a rough ride.

[shaggy]

A strong dollar would be the dream cure....don't think it's likely unless Europe comes to its senses and pays tribute for our continual bailing of their butts outta war and threat of war.... not likely either. Strap in tight it's gonna be a rough ride.

" BERLIN - The dollar sank to new lows in Europe Wednesday following a series of dour reports on the U.S. economy and expectations that the Federal Reserve will continue slashing interest rates.

The 15-nation currency hit a series of highs, culminating in $1.5087 before falling back slightly to $1.5031, nearly a full cent more than the $1.4967 it bought in late trading in New York on Tuesday.

Tuesday's high matched a record high set in November.

The British pound soared to $1.9971 before falling back to $1.9857, down from $1.9862 late Tuesday, while the dollar fell to 106.90 Japanese yen, from 107.26 yen.

Along with the rising pound, which is nearing $2 again, the muscular euro will not be kind to Americans visiting Europe. They'll have to pay more for a hotel room in Rome, more for entrance to the Louvre in Paris and more for chocolates in Belgium.

On the other hand, the stronger euro makes shopping trips to the U.S. more appealing to Europeans.

A higher euro also makes goods from the euro-zone more expensive for customers abroad, and cuts into manufacturers' profits if they try to keep the U.S. dollar price of products constant.

In Paris, France's budget minister Eric Woerth called the euro "a handicap for our exports.""

May not be long, if rates decline before foreign monies return to the US real estate markets, since with a weak dollar, everything here compared to foreign companies may look like bargains.

Have Jeep will travel :D

[dirtyhandslopez]

The U.S. will catch up to the rest of the world as far as costiliness. Then people will have to adjust there standard of living. Think; 4 cylinders instead of 8, less fancy foods from afar, smaller houses, more public transportation and more trains. but this would also mean less dependence on the rest of the world. I think people would actually have a greater sense of Americanness or national pride, whatever you want to call it.

[sprtsracer]

Nope from report per gallon, US dollar

Have Jeep will travel :D

Oh, and prices from 06, latest I could find. Dollar has weakened, so many may be more dramatic in USD comparison.

Actually, all countries have to purchase their oil in U.S. Dollars, so as the dollar weakens, our prices go up and the other countries' prices go down.

[saltandsand]

Actually, all countries have to purchase their oil in U.S. Dollars, so as the dollar weakens, our prices go up and the other countries' prices go down.


A quick question: Are the transactions merely denominated in U.S. dollars (i.e., the current global unitized currency) or are they actually purchased in greenbacks? Reason is that if it is the later then this provides me with further insight.

[shaggy]

Actually doesnt matter, if ya got to pay in US dollars, and a Euro is worth $1.50 in USD then at $100 per barrel, in USD cost would run about 670 Euros, since they would be able to exchange 1.5 euros for each USD.

$100 barrel divided by the $1.50 USD that a Euro be worth, $66.66 USD.

Have Jeep will travel :D

Or maybe something like that.

[saltandsand]

Actually doesnt matter, if ya got to pay in US dollars, and a Euro is worth $1.50 in USD then at $100 per barrel, in USD cost would run about 670 Euros, since they would be able to exchange 1.5 euros for each USD.

$100 barrel divided by the $1.50 USD that a Euro be worth, $66.66 USD.

Have Jeep will travel :D

Or maybe something like that.

It matters considerably because there are reserve requirements to facilitate the transactions (assuming the transactions themselves are in greenbacks.) Just think of the history of banking. So if we're having difficulty then rising oil prices increase the volume of dollars required to be reserved which essentially is just another way of passing the buck (no pun intended) and deferring a solution til another day. Just something to chew on a bit.

[shaggy]

Not sure about reserves, not into international banking or any of that, but would assume, if I can buy a futures contract at $100 USD, then someone in europe could buy same for the equivalent of $100 USDs in euros, or about 66.7 euros. And, as a side note, with the USD in a continual downward trend, how long until we see the Euro overtaking it as the currency of choice?

Have Jeep will travel :D

[saltandsand]

Not sure about reserves, not into international banking or any of that, but would assume, if I can buy a futures contract at $100 USD, then someone in europe could buy same for the equivalent of $100 USDs in euros, or about 66.7 euros. And, as a side note, with the USD in a continual downward trend, how long until we see the Euro overtaking it as the currency of choice?

Have Jeep will travel :D


As a practical matter the Euro has already done just that. We've allowed ourselves to become a subservient state of the European Union.

[saltandsand]

23 Retail Stores Closing, or Reducing Size...
http://money.aol.com/special/retail-stores-closing-doors