November 8, 201015 yr Interesting everyone is talking about the India trip but the Fed continuing to print money by the billions doesn't seem to bother anyone. Based on other things I've read I'm not sure if the "printing of more money" is wise.
November 8, 201015 yr Based on other things I've read I'm not sure if the "printing of more money" is wise. I am afraid one of two things is at play: 1) The key players of this administration do not understand the term 'capital' funds and how it differs from 'expense' funds and believes more funds floating around will magically trigger an economic recovery or 2) This is deliberate attempt to devalue the benchmark currency used throughout the world - the US dollar. If the case is one, then Obama, Bernanke and Geithner need to take an economics class. The focus of the 'stimulus' seems to have been on 'expense' type items such as maintenance of roads and other non-investment activities. Now repair of roads is needed. Its a necessary thing. But it is not 'investing', it is not 'capital investing'. Accounting wise and economic impact wise it is purely 'expense' - a one time spend of dollars. No return, no ongoing impact. Just spent dollars that will never re-appear. And the apparent results show this. Compare to FDR and 1920s. At least there dollars were used for 'capital investment' - examples include Hoover Dam and other dams for hydro-electric that not only created the one time jobs to build them, but also created new energy sources that are still used today for economic activity. Also, they created NEW roads that lead to NEW, ongoing commerce activities - a lasting, long term impact. This was 'investing' in America. If the case is two, then we are in trouble. We are an import nation now. We import oil obviously, but we import many finished goods. Unfortunately we export the raw material to make a lot of what comes back as imports. The raw material - wood, iron-ore for steal, etc. is exported as a commodity, it comes back as a finished good that has higher value. So as the dollar weakens against other currencies - which it will with this flood of the market with printed dollars then prices will go up. Sleeping inflation will wake up and go on a tear. We are already seeing inflation in the food prices. Milk prices have recently jumped. In our household we took notice of that since we go through 4 - 6 gallons a week. The value of the dollar - the defacto world currency - does have impact on us. If it is allowed to devalue we are in serious trouble. Edited November 8, 201015 yr by Bluegrasscard minor sp
November 9, 201015 yr I am afraid one of two things is at play: 1) The key players of this administration do not understand the term 'capital' funds and how it differs from 'expense' funds and believes more funds floating around will magically trigger an economic recovery or 2) This is deliberate attempt to devalue the benchmark currency used throughout the world - the US dollar. If the case is one, then Obama, Bernanke and Geithner need to take an economics class. The focus of the 'stimulus' seems to have been on 'expense' type items such as maintenance of roads and other non-investment activities. Now repair of roads is needed. Its a necessary thing. But it is not 'investing', it is not 'capital investing'. Accounting wise and economic impact wise it is purely 'expense' - a one time spend of dollars. No return, no ongoing impact. Just spent dollars that will never re-appear. And the apparent results show this. Compare to FDR and 1920s. At least there dollars were used for 'capital investment' - examples include Hoover Dam and other dams for hydro-electric that not only created the one time jobs to build them, but also created new energy sources that are still used today for economic activity. Also, they created NEW roads that lead to NEW, ongoing commerce activities - a lasting, long term impact. This was 'investing' in America. If the case is two, then we are in trouble. We are an import nation now. We import oil obviously, but we import many finished goods. Unfortunately we export the raw material to make a lot of what comes back as imports. The raw material - wood, iron-ore for steal, etc. is exported as a commodity, it comes back as a finished good that has higher value. So as the dollar weakens against other currencies - which it will with this flood of the market with printed dollars then prices will go up. Sleeping inflation will wake up and go on a tear. We are already seeing inflation in the food prices. Milk prices have recently jumped. In our household we took notice of that since we go through 4 - 6 gallons a week. The value of the dollar - the defacto world currency - does have impact on us. If it is allowed to devalue we are in serious trouble. I will second that. My 19 month old still drinks whole milk and it has gone up to over $4.00/gallon at Wal-Mart. He goes through about 1 1/2 gallons per week. My daughter goes through about 1-1/2 - 2 gallons of 2% and it's $3.79/gallon. My wife and I usually go through 1 gallon of skim milk a week and it's the same as the 2%. A year go we use to be able to get everything we needed for the week at Wal-Mart for around $200 and that included my sons Enfamil at $25 a week. Now we can't go there without spending at least $200-$225 without the Enfamil.
November 9, 201015 yr I will second that. My 19 month old still drinks whole milk and it has gone up to over $4.00/gallon at Wal-Mart. He goes through about 1 1/2 gallons per week. My daughter goes through about 1-1/2 - 2 gallons of 2% and it's $3.79/gallon. My wife and I usually go through 1 gallon of skim milk a week and it's the same as the 2%. A year go we use to be able to get everything we needed for the week at Wal-Mart for around $200 and that included my sons Enfamil at $25 a week. Now we can't go there without spending at least $200-$225 without the Enfamil. I read something from the WSJ saying food prices have risen 0.6% this year which is the slowest pace since they started keeping track in 1968.
November 9, 201015 yr I read something from the WSJ saying food prices have risen 0.6% this year which is the slowest pace since they started keeping track in 1968. 12/22/09 I bought 2 of the large containers of Folgers coffee for the office @ $6.48/ea. On 6/02/10 I bought 2 more at $7.76/ea. Right now they are over $8.00.
November 9, 201015 yr I try to stay away from Wal-Mart for food. I buy my milk (along with just about everything else that we eat and drink) at Kroger. Almost always $1.25 or $1.33 per half gallon. Often the gallons are priced higher than two half-gallons; makes me wonder what kind of math geniuses are buying by the gallon under those circumstances. No getting around that $3.00 gasoline, though.
November 10, 201015 yr I try to stay away from Wal-Mart for food. I buy my milk (along with just about everything else that we eat and drink) at Kroger. Almost always $1.25 or $1.33 per half gallon. Often the gallons are priced higher than two half-gallons; makes me wonder what kind of math geniuses are buying by the gallon under those circumstances. No getting around that $3.00 gasoline, though. I wish we would get a Krogers if even in Evansville. The closest one is Owensboro and I'm not driving 30 miles for groceries.
November 10, 201015 yr 12/22/09 I bought 2 of the large containers of Folgers coffee for the office @ $6.48/ea. On 6/02/10 I bought 2 more at $7.76/ea. Right now they are over $8.00. The coffee issue is separate than general food prices raising. A trifecta of bad news has sent coffee futures soaring 44% since June, and companies such as Dunkin' Donuts, Green Mountain and Maxwell House are passing on those costs. I know most people judge their assumptions of inflation based on what they personally consume, but there are so many variables that cause different products to rise in cost. Often we assume that everything is rising outrageously, when it's only select items that we happen to use most frequently. Consumer Price Index Data for September 2010 Food The food index rose 0.3 percent in September after a 0.2 percent increase in August. Both the food away from home and the food at home index increased 0.3 percent. Within the latter group, four of the six major grocery store food groups posted increases, with the other two unchanged. The index for meats, poultry, fish, and eggs rose the most, increasing 0.9 percent after declining in August. Within that group, the eggs index rose 7.2 percent. The index for cereals and bakery products rose 0.8 percent in September after a 0.1 percent increase in August. The indexes for dairy and related products and for fruits and vegetables posted slight increases in September, while the indexes for nonalcoholic beverages and for other food at home were unchanged. Over the past year, the indexes for cereals and bakery products and for nonalcoholic beverages have declined, while the indexes for the other four groups have increased.
November 10, 201015 yr A lot of things haven't gone up in price at the grocery store, but the amount you get in the package has decreased. Anyone else notice this trick.
November 10, 201015 yr The coffee issue is separate than general food prices raising. I know most people judge their assumptions of inflation based on what they personally consume, but there are so many variables that cause different products to rise in cost. Often we assume that everything is rising outrageously, when it's only select items that we happen to use most frequently. I actually believe the biggest factor in the increases I have seen at the local Wal-Mart is Wal-Mart seeing what they can get away with. There isn't much competition for them in Henderson so I think they feel they can get away with it.
November 10, 201015 yr I actually believe the biggest factor in the increases I have seen at the local Wal-Mart is Wal-Mart seeing what they can get away with. There isn't much competition for them in Henderson so I think they feel they can get away with it. My son and daughter-in-law have begun shopping more and more at Schnukes (sp?). They said that with the exception of a few things, the quailty was better (especially for things like produce) and the cost was comparable.
November 10, 201015 yr My son and daughter-in-law have begun shopping more and more at Schnukes (sp?). They said that with the exception of a few things, the quailty was better (especially for things like produce) and the cost was comparable. There is one a few miles from my office and I may have to go over on lunch one day and do so price comparisons. If I can save enough money it would be worth the drive. We usually come to Evansville at least once on the weekend anyways. Henderson is dieing for a big chain grocery store to open up but it just hasn't happened. There are several Sureways but they are really hit or miss on quality and prices.
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