INFLATION--now the top issue for young adults in the 2024 election

+6.8% inflation November 2021 from one year ago. Highest inflation in over 40 years.

Compared to 12 months ago:
Used cars up 31.4%
Gasoline up 58.1%

Spike in food items:
Tomatoes up 40%
Onions up 25%
Beef up 20.9%
 
The President said it’s just a “bump in the road”, and the worst is past.

The administration said they will apply pressure on meat packers…:confused:
 
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Start a thread about inflation…

and soon enough, they’re talking about the breast size of Japanese women…

:rolleyes:
 
The Fed is loathe to hike interest rates, but they’re back in a corner. Inflation has reached a state where they’ll likely ease in to some smallish incremental rate hikes. Stay tuned.
 
Adding to the food inflation—

approx 1400 Kellogg’s cereal workers (at 3 cereal plants) remain on strike after over two months. Workers have rejected the company’s latest offer. One sticking point is a two-tiered pay and benefits system. The company is threatening to replace them permanently with non union employees.

While I have much empathy for these arguably under-appreciated workers, it’s another piece in the food inflation puzzle. So be prepared to keep paying more for your Corn Flakes and Rice Krispies. And don’t think Post and the other cereal companies haven’t taken advantage of the situation to jack up their cereal prices.
 
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Kellogg’s.

The striking plants are located in:

:huskers::um::psu::tenn:

A tad North of :tech:is a whole bunch of corn and wheat farms — most of what cereal is made of. Sugar beets a bit further North of that. Low cost of living, abundant space, a business friendly environment, and no unions. Oh yeah, and no state income tax. Hmmmmmmmmmm.
 
I promise that no matter what, I'll always judge and ridicule Switzer more harshly.
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"US Inflation Rate Highest since 1982
Annual inflation rate in the US accelerated to 6.8% in November of 2021, the highest since June of 1982, and in line with forecasts. It marks the 9th consecutive month the inflation stays above the Fed's 2% target as global commodities rally, rising demand, wage pressures, supply chain disruptions ..."


6.8 percent annualized inflation as of November. The talking heads on Larry Elder's radio show this evening said look for the low double digits next year.

Energy is one of the big drivers of this. Easy $$$ is another. Not enough people working and making stuff and performing services is another. The ongoing clusterf@ck at the ports is another.

United States Inflation Rate | 2021 Data | 2022 Forecast | 1914-2020 Historical
 
Have to raise interest rates at this point. Asset prices will fall because they are artificial.

Better yet end central planning of the money supply.
 
The Fed Meets Amid Faster Inflation and Prepares to React

Swedish c.bank chief says inflation surge due to energy prices

UK medium-term inflation expectations joint-highest since 2013 - Citi/YouGov

Rising grocery prices force customers to buy less, change brands and switch stores - CNN

Some of this is just common sense -- if your budget is tight, save some $ by buying the store brand food and other products. Or go to the cheaper store.

Last month, grocery prices were 6.4% higher than they were a year ago, the fastest pace of food inflation in more than a decade. Some shoppers are responding by trimming the number of products they're buying at the store and trading down to less-expensive private-label brands.

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The cheaper store. Don't buy their produce though...
 
Bernie Sanders 'Concerned About Inflation,' But Insists $3.5Tn Bill Won't Make it Worse

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Bernie says:

"... this $3.5 trillion and then there's another $600 billion in a so-called bipartisan infrastructure bill—will pay for itself. :confused:
...
So that should not add to the inflation concerns."


Chop says:
Well, what it would likely do is re-distribute $$$$ from savings and investments (taxes on wealthy and corps.) to the infrastructure workers and suppliers through the gov't. Those workers and suppliers will promptly spend the $$$ as will the gov't. In this bill, $$$$ will be spent--whether it comes from taxes or borrowing. More spending--could be inflationary. Just saying.


Bernie Sanders "concerned about inflation," but insists $3.5 trillion bill won't make it worse
 
More thoughts on inflation/deflation from the perspective of Austrian economics.

Price Deflation and the Horrors of Falling TV Prices | Kyle Ward

Applying Austrian praxeology, we can understand how economic calculation happens within the human mind/soul, and use that to evaluate the deflationary death spiral idea.

First, at each point in time there is a perceived benefit of an item and its cost by an individual.

If an individual perceives that a good will benefit himself more than the cost to purchase it then he will purchase the good. The fact that the good's cost could decrease in the future doesn't change the decision point at all. The benefit outweighs the cost today so the ordinal ranking is set, good > money. This is how humans make economic decisions. It is according to an ordinal ranking. Once the good is ranked ahead of the cost, the individual will purchase the good. Why wouldn't he if he values it more? It would be illogical not too.

Of course the real world doesn't follow theory 100%, so maybe a person would wait a week or a month to buy a good they already value over cost in order to save money. However, that doesn't change the fundamentals of the situation. I think this is a clear refutation of the deflationary death spiral idea using Mises' praxeological framework.

Also as a supporting example, people buy on impulse all the time with no thought outside of the moment.
 

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