Deflation is really scaring me!

[Vague_Boy]

Commodity prices on the rise in the last 2 months.

 

The report highlights how despite cotton rising by 54%, corn rising by 29%, soybeans rising by 22%, orange juice rising by 17%, and sugar rising by 51% during the months of September and October alone, these huge commodity price increases have yet to make their way into America's grocery stores because corporations have been reluctant to pass these price increases along to the consumer. In today's dismal economy, no retailer wants to be the first to dramatically raise food prices.

 

LINK

 

With QE2 now official, expect more scary "deflation" to come in 2011.

 

Aren't we lucky that CPI inflation figures (the ones that people's salary increases are based on) exclude energy and food costs (link). After all, who really needs food, or heating, or anything else transported by air, rail, road or sea?

[anywebsite]

You seem to have got it the wrong way round. QE causes inflation, the opposite of deflation. Deflation is when prices drop (which is much more scary than prices rising).

 

CPI includes food & fuel costs, it excludes housing costs (thats the difference between CPI & RPI). The link mentioned a proposed change away from CPI to 'core inflation', which excludes food & fuel, it was only a proposal made by a (non-government) professor, in May, it isn't likely to happen.

[chem1st]

10% threshold is soon upon us and interest rates shall rise accordingly. Poverty shall reveal itself when the have-have-nots have-not.

 

Soon afterwards we descend into war, need we describe the import/export -(global tax-benefit) system and following pandemonia...

 

The SDR's have gone overboard, they lack the value needed to secure confidence in the markets of which they have a diminishing share. A new monetary system shall emerge, whether we like it or not, we no longer control the means of production and our market share has declined rapidly against emerging markets.

 

Ostentation, avarice and laziness and the incentives underlying them have sealed our fate. Rather than continuing our decline, we need to rise up and assert our economic power and capabilities, else our future is a bleak one. The lucky few have the option to move, many are already condemned to a future they know nothing of.

[chem1st]

You seem to have got it the wrong way round. QE causes inflation, the opposite of deflation. Deflation is when prices drop (which is much more scary than prices rising).

 

CPI includes food & fuel costs, it excludes housing costs (thats the difference between CPI & RPI). The link mentioned a proposed change away from CPI to 'core inflation', which excludes food & fuel, it was only a proposal made by a (non-government) professor, in May, it isn't likely to happen.

 

 

Possibly a saver, where inflation of money = real time deflation

[anywebsite]

You've lost me chem1st, are you referring to stagflation?

[Tipex]

lol stop panicking.

[andyofborg]

don't worry, the LHC is about to produce some negative strangelets which will initiate the ice-9 reaction which will condensate the planet into a 15km ultra dense strange star

[sccsux]

don't worry, the LHC is about to produce some negative strangelets which will initiate the ice-9 reaction which will condensate the planet into a 15km ultra dense strange star

 

Sounds plausible:).