Inflation

Discussion in 'Markets & Economies' started by mmm....shiney!, Jan 16, 2021.

  1. Ag bullet

    Ag bullet Well-Known Member

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    What value do they add? Merchants buy it off the farmer then buy and sell it amongst themselves adding to the price but not the value, then charge the farmer 15% commission!! Then Woolworths and Coles do nothing other than provide a point of purchase for the consumer. Zero risk.
    At least that's what happens here for tomatoes.

    Honestly, the fresh produce market system needs a Royal commission. The consumer could pay half the price, the farmer could make twice as much. The middle men would then get fair value.
     
  2. Michael Kay

    Michael Kay Member

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    So you double down on being an arrogant, condescending d**che? I hope you don't talk that way to your friends and colleagues :p, because you have all the charm of Sheldon Cooper. Just because you are (or think you are) smarter than others, doesn't mean you should beat people over the head with it.

    But whatever, you asked for evidence, you get it.

    1000% rise in house prices, plenty of graphs for you to ogle https://datamentary.net/australian-house-prices-over-the-last-50-years-a-retrospective/

    On the economic "confidence trick"
    Academic paper by Steve Keen https://ro.uow.edu.au/cgi/viewcontent.cgi?article=1052&context=aabfj
    Academic essay https://aeon.co/essays/the-financial-world-and-the-magical-elixir-of-confidence
    An MSM article on this very topic, published today https://www.canberratimes.com.au/st...nuation-housing-policy-is-a-confidence-trick/

    Over to you.
     
    Last edited: May 17, 2022
  3. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Getting it from the farm gate to the shelves for consumers to buy. Yes it's a pretty simple process from all accounts, if you ignore logistics, contracts, what competitors are doing, seasonality etc etc.

     
  4. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    My message is not getting through obviously.

    Screen Shot 2022-05-17 at 2.20.34 pm.png

    Back on the house price bandwagon again I see? Sigh.

    Anyway, thanks for the bibliography which I won't be responding to. You tell me what those 4 articles are arguing, frame it in the context of the current debate on inflation ie by refuting my position that QE did not cause price inflation for goods/services and then I will respond. But if it's about housing prices or the sharemarket then don't hold your breath, I probably won't feel like repeating myself for the 3 457th time.
     
  5. Michael Kay

    Michael Kay Member

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    Well-read but refuses to read. Here's a summary: the articles support my claims.

    But when someone starts posting childish memes, it kinda unravels any kind of facade of intelligence, doesn't it? You're not helping your cause.
     
  6. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    EU coming to realities and allowing EU Oil/Gas giants to buy as much oil/gas from Russia in Rubles (via magic FX swap), in Euro or Dollars
     
    Last edited: May 18, 2022
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  7. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    ^^^
    Reality is a bitch!
     
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  8. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Here it is again:

    https://courses.lumenlearning.com/olemiss-writ250/chapter/structure-of-argument/

    The essence of presenting an argument is to include your own research-based writing, not simply to just make a claim and then provide a list of sources for the other person to go off and read and do all the work. That's a bibliography, not an argument.

    Not really. I'm not the one resorting to ad hominem.

    [​IMG]
     
    Last edited: May 17, 2022
  9. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    No one has responded on the blog to my question on how to increase supply without forcing inflation higher. Either no one has an answer or the ones that know haven't seen my question. So I'm at a loss and can only concur with your ideas around reducing taxation as well increasing infrastructure spending and eliminating unemployment. Naturally, this has all got to have some effect on inflation though. That is until everything starts functioning properly again and these measure begin to take shape.

    Steph Kelton highlights why she thinks inflation is at all time highs. Fiscal stimulus is omitted because she discusses it previously in the article and concedes that it does have an inflationary effect, but only minor. Not everyone will agree with her here (she is a lefty after all) but there are plenty of root causes she lists and plenty of options for governments to take action:

    https://stephaniekelton.substack.com/p/z-inflation-problem?s=r

    Pick you favourites from that list and come up with any strategies to solve them. There's some interesting ones in there that even lefties and national-socialists would find common ground in. :p
     
  10. 66rounds

    66rounds Well-Known Member Silver Stacker

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    What weight do you give to the idea that fixing negative gearing would help cool the housing market down?
     
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  11. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    I probably couldn't give much by way of economic insight into that as it's not been an option I support so I just haven't looked into it. But you'd have to assume that the old saying "Show me the incentive and I'll show you the outcome" would ring true there. If an individual couldn't offset their tax obligations by claiming IP related expenses then the demand for IPs would surely have to fall. Whether that cools the market in any meaningful way I couldn't say.
     
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  12. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    That complaint will move on to something else.

    People who can't buy a property no matter what help is given will never be able to buy a property.
     
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  13. Timmy88

    Timmy88 Well-Known Member Silver Stacker

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    So are prices going up or the dollars going down.

    Timmy
     
  14. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    In absolute numbers prices are going up (numbers on the price tags keep getting bigger), while real wages are not keeping up with the pace and pensioners have not been getting any interest on their savings - so incomes (and purchasing power) are going backwards?
     
  15. jultorsk

    jultorsk Well-Known Member Silver Stacker

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  16. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    Sheesh.. :eek:

    Screen Shot 2022-05-18 at 10.32.38 am.png

    FS5mjbzXEAApSDW.jpeg
     
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  17. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    What are the chances the RBA keeps interest rates on hold for a while?

    From the minutes of the last meeting:

    snip

    snip

    https://www.rba.gov.au/monetary-policy/rba-board-minutes/2022/2022-05-03.html

    Forecasts were at 0.8%. The previous quarter was also 0.7% so I'm not sure where the RBA's "labour costs were rising at a faster pace" that helped justify a rate hike bit fits in.

    Anyone else reckon someone's liaison program is likely totally fkd? I'm thinking the RBA's it's just a pseudonym for asking economists from financial institutions what they think. But don't worry, those same "professional" economists are predicting that these figures won't change the direction the RBA is intending to head:

    https://www.3ba.com.au/news/national-news/111844-sluggish-wage-growth-wont-stop-rate-rises

    Gotta look after their banking buddies. o_O
     
  18. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Red arrow shows the RBA's expectations regarding wage growth was to continue on the path it has since the height of the pandemic ie 4 consecutive qtrs of growth. Blue bars show the actual.

    Screen Shot 2022-05-18 at 4.52.33 pm.png
     
    Last edited: May 18, 2022
  19. jultorsk

    jultorsk Well-Known Member Silver Stacker

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  20. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    ^ are they blaming gas/electricity price rises on QE? :p
     
    Last edited: May 18, 2022

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