Monday, October 25, 2010

Re: Inflation

Just got off the phone with someone who owns and operates a boutique food operation.  Wholesale organic beef prices are up 22% in 10 days.

13 comments:

  1. Bernanke doesn't consider the price of food when he measures inflation and he is way smarter than any of us. Besides, everyone knows that you can switch to cat food if the price of organic beef becomes a burden.

    Relax bro. There is no inflation. We must fight deflation.

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  2. probably the transportation costs causing the increase--that's not in core either.

    Has anyone besides me ever reported CPI and PPI to BLS?

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  3. supply and demand. all the fiat money flooding the globe is increasing the demand for beef. transportation costs haven't gone up 22% in this year, let alone the last 10 days. The cost of fuel has been largely flat and the gas at the pump where I buy 91 octane has actually declined a bit in price this monht. inflation is a monetary phenomenon.

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  4. The thing that amazes me is the lengths the government statisticians must have to go to to get the reported numbers so low. The fraud in official statistics closely matches the fraud in the mortgage market and both seem to be bubbling to the surface now. The day is going to come when people snap, but I thought it would be years ago, no doubt when it finally happens I'll be taken by surprise.

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  5. Dave, BAC continues its death spiral. JPM to follow.

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  6. I would think WFC would be ahead of JPM--but I am not the decider.

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  7. JPM ain't goin' under. JPM is basically the Fed. BAC will be the sacrificial lamb. They stuffed Countrywide and MER, to of the biggest ticking timb bombs in the system. They will kill BAC, which they should anyway, monetize the viable assets and transfer the rest onto the Taxpayer balance sheet. WFC has the Buffet stamp on it, so I doubt it will be allowed to die.

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  8. " There are lies, there are outrageous lies and there are statistics " ....

    Mark Twain

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  9. funny animal inflation....
    22 years ago I needed a roof. It cost about $1,900. Now I need the same roof done again. This time the cost is $9,500. Five times as much!
    500%.
    I don't think the CPI has gone up 500% in the last 22 years. Or has it?

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  10. Your thoughts Dave?

    UPDATE 1-U.S. CFTC unveils new tools to stop manipulation

    http://www.reuters.com/article/idUSN2612904620101026

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  11. boutique food operation! organic beef!!

    Oh dear! What will all this mean to the price of my double latte mocha Cappuccino espresso with fat free goat's milk??? Oh! I fell faint! Whatever will I do? I think I will go to the Villa and pout.

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  12. Well bro, your basket of Asian manufactured generics you get at Walmart will be going up double digits as well...

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