if you annualize the most recent inflation report then the U.S. is keeping up nicely with other 3rd world countries’ inflation gains.
Can you elaborate more? Most of your posts are pretty sharp. We started this year with oil prices at ~$60 and now they are at ~$95, thats roughly a 36% increase in this commodity. The dollar is not keeping up with this and neither are wages. Wish I was smarter to figure the big picture here. My hope is that understanding econ for level 1 should assist with this.
c’mon it’s not that bad… Zimbabwe, Venezuela and Iran still have higher inflation! hhhmmm…Zimbabwe looks nice this time of year… you think oil is high now - just wait till george w starts bombing iran - in 12 hours: strait of hormuz will close, in 24 hours: we get $200 a barrell oil. nice
other developed countries have had their currencies plunge. look the history of the yen.
every few years we’ll use the ole’ mexican trick, just chop a zero or two off. ps kjh… i can’t elaborate. The more I think about this macro stuff the less good it does me and my investments. It’s fun to joke about it. Furthermore, the CFA economics stuff was interesting but that’s about it. I will say that economics seemed to keep getting better as i went from 1, 2 to 3 in the program.
Good living is how you fight inflation. Buy the good stuff today and capture the memories cuz tomorrow it will cost more!
virginCFAhooker Wrote: ------------------------------------------------------- > Good living is how you fight inflation. Buy the > good stuff today and capture the memories cuz > tomorrow it will cost more! haha thats awesome. i assume the hooker element of your name is an allusion to your position on the rugby pitch.
In case you havn’t noticed, but inflation is popping up everywhere around the globe. What a surprise… Thing is how you deal with it. In Argentina, Mr. Kirchner (the precessor of Mrs. Kirchner) allegedly had the staff of the statistical office exchanged. Wise move! Damn those bastards, coming up with double-digit numbers. how could they?! What also bugs me is Benny & friends, who - after flooding the financial system with money - kept on saying inflation is under control. Well, ínflation is clearly going up and with an uncomfortable pace. And now they are back, flooding the system with liquidity…
My finance is kind of rusty now after being out of it for 4 months, but since the current rate of inflation is being pushed by high energy prices, which is flooding down to food and other products because of high transportation costs, doesn’t it make sense that the Fed might use interest rate cuts to push the economy forward in order to head off stagflation? It doesn’t seem like raising interest rates is going to have much immediate impact on deflating fuel prices, which seems to be the what’s pushing inflation. At this juncture, raising rates might hurt the economy and do nothing to stop inflation. The solution is more U.S. domestic drilling in the short-term and new technology in the long-term. Just wait until we are driving off water vapers and using nuclear energy for electricity. Inflation will stop in its tracks.
I don’t think that it’s high energy prices; I think it’s a combination of a wreck of a fiscal program, energy (but see #1), credit woes (but see #1), dollar devaluation (but see #1), etc… The Fed cutting interest rates to stimulate an economy to avoid stagflation that last happened 30 years ago in a different era would be the twilight zone for me. I would want tests of the water they are using to make the coffee at Fed meetings.
Yeah, but raising interest rates isn’t going to help 1) credit woes or 2) energy prices (unless the Fed raised rates enough to improve the value of the dollar). If somebody could explain the process of how raising interest rates now in with our current issues will improve the inflation outlook then I’d like to hear it (I’m not saying that sarcastically–I’d actually like a solid explanation for my own understanding).
No doubt about it… raising interest rates will kill reinvestment. It will cause unemployment. People will consume less. Businesses will consume less. It will fundamentally kill inflation and cause deflation. Academically speaking, the fed should do this because employment is high. You guys should watch/read the Warren Buffett “china tour” interview. (Warren Buffet Watch on Cnb, chttp://www.cnbc.com/id/19206666/site/14081545/) It is great. He talks about how interest rates & what the fed does is irrelevant. He also talks about politics. He’s got a good sense of humor for geezer value stock picker. He is hoping for a couple more recessions before he dies.