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    Galveston1's Avatar
    Galveston1 Posts: 362, Reputation: 53
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    #1

    Jun 27, 2008, 01:40 PM
    Why the high inflation rate?
    Higher prices are on everyone's mind with a lot being said in these threads. So--- what is your collective opinion of the reason for this sudden rise in prices?
    N0help4u's Avatar
    N0help4u Posts: 19,823, Reputation: 2035
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    #2

    Jun 27, 2008, 01:42 PM
    Gas to transport goods. Truckers say they can not even afford gas.
    George_1950's Avatar
    George_1950 Posts: 3,099, Reputation: 236
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    #3

    Jun 27, 2008, 03:15 PM
    Too many dollars (yuan) chasing too few goods.
    N0help4u's Avatar
    N0help4u Posts: 19,823, Reputation: 2035
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    #4

    Jun 27, 2008, 03:28 PM
    yeah they said the $ devalued because they are printing more money than they are suppose to be.
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #5

    Jun 27, 2008, 03:29 PM
    Hello Gal:

    George is right on. When you INJECT new dollars into the economy, the prices go up to soak up all the extra dollars. Therefore, price inflation is a direct result of monetary inflation. When I say inject, I mean print out of thin air. If the increase in dollars were due to a highter standard of living, then the price increases wouldn't hurt.

    But, they're not. They're the result of a mismanaged federal economy. What I mean specifically, is this. Instead of raising taxes to pay for his war, George Bush borrowed. That's how they inflate the money supply. They create a bond out of thin air, and then sell it to the Chinese, or whomever.

    There's more to it than that... This year alone:

    Crude oil up 42.5%
    Ethanol up 20.7%
    Heating oil up 43.9%
    Natural gas up 76.5%
    Unleaded gas up 39.5%
    Cattle up 1.0%
    Corn up 58.8%
    Soy beans up; 26.4%
    Coffee up 5.9%
    Aluminum up 32.7%
    Copper up 25.7%
    Platinum up 33.4%
    Gold up 6.0%
    Silver up 13.4%.
    Wages up in the 3rd world 18.2%
    Don't know why they're not up here. Maybe because everybody is working at Walmart.

    S&P 500 down 10.24%
    Frankfurt DAX down 18.32%
    London FTSE down 12.23%
    Paris CAC down 19.64%
    Hong Kong Hang Sang down 18.33%.
    Tokyo Nikkei down 9.47%
    Singapore Straits down 14.04%.
    Seoul Composite down 9.57%
    Sydney All Ordinary down 15.76%
    Taipei Telex down 7.40%

    Buy gold.

    excon
    SkyGem's Avatar
    SkyGem Posts: 177, Reputation: 18
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    #6

    Jun 27, 2008, 03:37 PM
    Quote Originally Posted by Galveston1
    Higher prices are on everyone's mind with a lot being said in these threads. So--- what is your collective opinion of the reason for this sudden rise in prices?
    High oil prices? This is also a CURRENT EVENT:

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    tomder55's Avatar
    tomder55 Posts: 1,742, Reputation: 344
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    #7

    Jun 27, 2008, 04:57 PM
    Chicken or eggs . I do not argue that Bernanke has been a disaster ;but if the money supply was tight there is still that demand problem with energy in a global economy and I think that rather than currency is the straw that stirs the drink.
    Galveston1's Avatar
    Galveston1 Posts: 362, Reputation: 53
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    #8

    Jun 30, 2008, 03:44 PM
    I wanted to hear what others think about it. I think that speculators who will never use a drop of oil have been responsible for a lot of it. I also think that every group who has deliberatelly stood in the way of our developing and using our own resources is to blame. Of course, oil prices are driving it all.
    As to borrowing to fund the war, don't only blame Bush. I doubt that he made that decision without congressional consent, since spending has to originate in the House. In WW 2, the gov't borrowed for the war. Can any of you remember war bonds? Maybe if it was done like that now, everyone would understand that there really is a war going on.
    tomder55's Avatar
    tomder55 Posts: 1,742, Reputation: 344
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    #9

    Jul 1, 2008, 02:30 AM
    Yeah war bonds were essentially the same thing in that it was borrowing... except there was an effort to get Americans to invest in the war effort . There should've been a greater effort along that line instead of telling Americans to go about their merry way and shop until you drop.

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