More bad news that inflation is here

Wholesale prices for choice-grade beef -- the main variety consumed in the U.S. -- surged 11 percent over the 12 months through May as cattle prices reached all-time highs, according to the U.S. Department of Agriculture. The gains come as supermarkets gear up for the week of Fourth of July -- typically the year's busiest period for beef sales.


http://money.msn.com/top-stocks/pos...r-rising-beef-prices?gt1=33048&ocid=ansmony11

Just as I said once again, as well as a few others here, that inflation is getting worse because the value of the American dollar is getting weaker due to to much money in the system. When over 6 trillion dollars is injected into the economic system there's going to be problems especially when your just printing new money and not really earning it.

I'll bet Social Security won't get any increases in the retirement checks anywhere close to 10 percent or people won't get that in their cost of living increases.

 

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Social Security retirement & disability increases have not kept up with inflation for the past 8 years. I do not personally know about other types of Social Security but I would guess they've been the same. I certainly do not expect them to suddenly change for the better.

 

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I suggest you actually read the article you referenced or at least scan it before you orgasm. Fed monetary policy didn't cause the drought which your article identified as the reason for increased beef prices.

 

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Well actually they have. The data, the price surveys conducted across the country every month, have consistenty proven inflation has been very low.

 

Bloomberg: How to Beat Inflation: Skip Kids, Cars, Getting Old

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You'll hear over and over again, that inflation is 'good' for the economy because if prices fell, no one would buy anything. You know, like what's happened with computers, smart phones, 3D flat screen smart TVs and iPads. No one bought any of that stuff because each year the items are cheaper and better. Oh, and I'm sure the village idiot who runs out to buy the latest electronic is thinking about delaying their purchase because of the 5% savings made today against just waiting a couple more years without a TV or smartphone. Yeah, especially since they can barely calculate what interest they're paying on their 25% YoY annual interest baring "Credit"(/debt-slavery) Card they buy their shit with.

 

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Except that is either blatent ignorance or partisan horse shit. CPI numbers are weighted to compensate for the issues mentioned. And your post is a gross misrepresentation of deflation. Deflation due to a lack of aggregate demand is a serious problem. Price reductions which result from competition isn't the same animal - another one of those damn minor details.

Life and economics is a little bit more complicated than your libertarian, "See Spot Run", world view allows.

 

Price inflation due to high demand and limited supply is good as it ensures the price rises to prevent the good or service from being over consumed and is available to those who really want or need that good or service. That is not the same as a 2% price inflation "target" set because some douche' at the Federal Reserve works to monetize our Central Planners idiocies . Yet, there you stand carrying water for the Fed per usual. Which matches your generation's MO, given you're the one's who hyper-regulated the markets in favor of screwing one another - and eventually your own kids, their kids, and their kids as well.

Pretending with a straight face inflation (due to outright price manipulation) is 'good' for the economy. What? Is it helping you pay off some slum-housing? The ultra-low interest rates not good enough? You need to debase what little currency the poor managed to scrape together with the hopes of buying their own house or putting their children through community college?

Don't worry Joe, this train has just left the station. It's only been, what? Half a decade or so? There's plenty more years worth of Central Planning to go. Decades actually. To all you Gen X/Y and Millennial's: Welcome to the New "To Big Too Fail" Economy. Hope you're enjoying it - because your grandparents have ensured you'll be living it for the rest of your productive lives. Hyper-regulated Tax Chattel in our Central Planners Tax Pen. Vote for whomever you want, that reality is not going to change.

 

Ignoring the fact that we don't have central planners, what you described as "GOOD" is the classic definition of inflation.

 

From: FederalReserve.Gov

From: WSJ
John Cochrane: The Federal Reserve: From Central Bank to Central Planner

Forbes: Dreams of a Central Planne




Enjoying life in our Central Planners Tax Pen Amoorikkka? Don't worry, you have the rest of your life to get used to it.

 

None of that changes the fact that we don't have central planners. We have a congress which manages fiscal policy and the Federal Reserve which manages monetary policy. I suggest you and your partisan friend find out what a central planner is before you use the term.

 

From: FederalReserve.Gov

You live in La La Land Joe.

We live as Tax Chattel in a Tax Pen called the United States of America.
We live under the mismanagement of Central Planners, both in our Fascistic Central Bank and the warmonger Federal Government it owns. Together these two immoral institutions work Hand-In-Glove fleecing the Amoorican Tax Chattel by selling Debt on their children's future labor. Of course, after 100 years of Progressive Socialism propaganda, that's exactly what Amoorikkkan Chattel Class want. They WANT to be hyper-regulated. They WANT to pay the State a labor tax - it makes them feel secure knowing some moron own's them. They love being required to take State Licensing tests to arrange flowers or fix computers. They love that the State spends $100s of billions of dollars spying on them.

That way Amooorikkkan's can complain about the LEFT or the RIGHT and fullfill their destiny as Cannon Fodder in mismanaged Wars of Aggression - that we eventually lose.


By having their lives Centrally Planned for them, Amoorikkkan's can forgo personal responsibility and living within their means. Why do that when you can borrow from your grand-children's (hypothetical) future prosperity. Hell, thanks to Government Schooling, you won't need to worry about them questioning their "Social Contract". They wouldn't be able to read and comprehend it, and if they could, would be too brainwashed to question it anyway.





Enjoy the Centrally Planned NEW Economy that's crumbling all around you - it's going to be here for quite some time. Decades.

From the total and utter mess that is Common Core to disaster that is O-blah-ma Care the edifice of our Centrally Planned USSA society is crumbling away.

 

I see you haven't done your homework. You are not interested in truth and honesty. Your only interest is in mindlessly repeating libertarian ideology.

 

Actually they have not. I know many people on Social Security & I see the prices jumping, in this area at the very least. And I seriously doubt it is much better any where else in the US.

 

US's "central planners" don't act directly. They bias publics decisions to promote "desirable" choices. For example, they believe that home owners are more responsible / desirable than renters, so give many millions (billions, I suspect) each year in tax relief to home owners. Promote other things like home insulation, solar energy or electric cars, etc. This is more effective central planning than the USSR ever had, with far fewer screw ups.

I have several times told about my conversations on train ride in Hungry with pretty economics major at University of Moscow. She worked summers at tomato processing plant. One summer sitting at her work station and reading ~6 classic books in English, as the directly acting central planners had forgotten the cans needed lids. Plant manger bribed the two or three dirviers of truck loads of tomatoes to dump them directly in the town dump after he signed for delivery. Every other summer was a different economic disaster. In one the same tomatoes crossed the border 8 times (four each way) to gain commie cone export credits for the Plant manger and his friend in Bulgaria. - first just steam briefly before canning, then came back just pealed in other cans, etc. until finally the when as tomato paste they returned on their 8th border crossing made into catsup.

SUMMARY: US certainly has central planning - but it is much more efficiently done than the direct acting old USSR's central planners were.

 

Good for several reasons.
1) Less beef = healthier Americans who live longer and stress the healthcare system less.
2) Less beef = fewer resources wasted (water, natural gas)
3) Inflation = about the only way we will ever be able to pay off our debt

 

But beef prices are going up 11 % and other food items as well. My point is that increases in any prices that the general consumer buys makes it more difficult for families to buy food supplies whatever they might be and if they are on a fixed income it really hurts more and more no matter what you say.

 

Actually, they have. It is the law. People notice when prices go up, but they are a little more reticent to notice when prices go down. The fact is price surveys are conducted every month. And the CPI is based on a basket of goods and services...not just one or two prices.

 

Of course people are hurt when prices rise and income doesn't increase commensurately. But that isn't what you posted. You cited the increase in beef prices and attributed that increase to monetary actions taken by the Federal Reserve when the article you cited clearly identified the increased beef prices to a draught. The Federal Reserve does not control the weather. It doesn't do droughts.

I am well aware of folks on Social Security and their finances. I managed by aunt's finances during the later years of her life. So I know what expenses he had as well as her income. And her costs were in line with her Social Security increases. If fact, due to Medicare Part D and Obamacare, she did better than the inflation rate. Her single largest expense was her home health aids who helped her with her activities of daily living. Unfortunately, most Americans don't have long term care insurance or the have the financial ability to bear that expense. But that has nothing to do with inflation. By the way, her home health aid expenses over the years was flat. There were no increases in that cost for many years.

 

LOL, no Billy T the US certainly does not have central planners. There is no tsar or governing body determining how resources will be allocated. There are fiscal programs (i.e. trade policies, incentive programs in virtually all industries) which are intended to boost demand and consumption. But that isn't central planning. There is no central planner in Washington DC deciding how the nation's resources will be allocated and what will be produced. That is just more wing nut conspiracy nonsense.