huge inflation without wage increases in vietnam - How?

Quote from Covertibility:

So every time there is a heatwave that destroys a lot of crops and causes a rise in food prices, the Fed is going to raise rates to combat these high prices?

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Inflation is a monetary phenomenon.
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IF prices regressed to the mean following weather related price spikes, your argument would have some validity. But that ain't the case now is it?
 
Quote from jem:

come on, why feign ignorance.
haven't you seen jim rogers rant about inflation and how it is calculated for more than a decade.

or more importantly have you been to the grocery store to buy food or the gas station to buy beer or soda?

remember when you could get lunch for 5 bucks in the states.
a decade later its 10.

I order a buritto with beans and a coke yesterday...
$9.72. for lunch.

I wonder how people making 10 bucks an hour can eat.
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Well 45 million of them are on food stamps. I don't know the formula, but I'd image that there are federal poverty guidelines and those who meet the criteria receive the assistance.

Just another example of how "the social safety net" from Medicair/Medicaid, Student Loans, Fannie Mae, foodstamps, etc, etc, etc..play a significant part in distorting the real world prices for the rest of us who are stuck somewhere in the middle...
 
Quote from denner:

IF prices regressed to the mean following weather related price spikes, your argument would have some validity. But that ain't the case now is it?
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Food doesn't appear to move in lock step with the core. Either weather or worldwide demand is moving it all over the place. I still wouldn't bother with the price of food when tinkering with monetary policy.
 
Quote from denner:



Just another example of how "the social safety net" from Medicair/Medicaid, Student Loans, Fannie Mae, foodstamps, etc, etc, etc..play a significant part in distorting the real world prices for the rest of us who are stuck somewhere in the middle...
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Definitely. A much needed crash/purging in higher education would occur and tuition would be lower if not for all the gov't involvement (guaranteeing student loans and such).
 
Quote from MKTrader:

Definitely. A much needed crash/purging in higher education would occur and tuition would be lower if not for all the gov't involvement (guaranteeing student loans and such).
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Yes, most definitely. I've mentioned it on here a few times before, but I literally laughed at the absurdity back in 08-09 when the politico's did their whole song and dance about "saving" the student loan market, as it was so crucial for funding higher education costs...yada, yada...All it did was ensure these liberal hack administrators could pay themselves a million bucks a year to serve as President of the university, knock down and rebuild their campuses a few times over and gauge those naive students for their annual 6-10% tuition increase...

Nothing I would love more than a few high profile private universities to fold up shop. Such arrogance with so little practical benefit.
 
Quote from denner:

Yes, most definitely. I've mentioned it on here a few times before, but I literally laughed at the absurdity back in 08-09 when the politico's did their whole song and dance about "saving" the student loan market, as it was so crucial for funding higher education costs...yada, yada...All it did was ensure these liberal hack administrators could pay themselves a million bucks a year to serve as President of the university, knock down and rebuild their campuses a few times over and gauge those naive students for their annual 6-10% tuition increase...

Nothing I would love more than a few high profile private universities to fold up shop. Such arrogance with so little practical benefit.
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Harsh. True though.
 
Quote from denner:

Well 45 million of them are on food stamps. I don't know the formula, but I'd image that there are federal poverty guidelines and those who meet the criteria receive the assistance.

Just another example of how "the social safety net" from Medicair/Medicaid, Student Loans, Fannie Mae, foodstamps, etc, etc, etc..play a significant part in distorting the real world prices for the rest of us who are stuck somewhere in the middle...
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Good point.

45 million people X an avg of $200 per month in food stamp benefits = $9 billion per month injected into the grocery aisles (or $108 billion per year) Now if you inject $108 billion dollars into ANY industry and you will see inflation in that industry.

Basically 22.5% of all grocery sales comes from food stamps. Thats not including WIC either.
 
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