An interesting phenomenon is happening globally. As prices rise, countries demand more and more USD in order to buy fewer and fewer things. Contagion is setting in and countries are defaulting on their loans, destroying dollar reserves banks thought they had. So the dollar is becoming very strong, holding prices in USD much lower than they should be. You can think of it as all fiat currencies falling against the value of goods, but the dollar is falling much, much slower than all other currencies.
So the USD is getting a free subsidy right now because it is still the reserve currency of trade.
However, once the new BRICS asset backed currencies are fully in play, banks get all their foreign currency correspondent accounts opened and established, and countries start shedding USD in order to balance their reserves with BRICS accounts, that artificial demand for the USD is going to plummet. (India just announced yesterday that all trade henceforth will be in INR)
That is when real inflation will start. That is when the dollar will weaken...a lot. This is just spring training. Expect the season opener in a couple of months.
Ok, I understand people are having a hard time. But I'm wondering if inflation is region specific. The reason I wonder is because I don't think my staples have gone up much.
Of course we are all paying insane gas prices.
But as for food, I eat mostly carnivore. Lamb chops have been $7.99 per pound at costco for years, costco sized packages of kerrigold butter hasn't gone up in a long time, eggs haven't gone up much, but I do think bacon has gone up some. We have at least 5 big grocery chains close to us, I can get quality steak for under $10 per pound from one of them each week. I bought 10 pounds of t-bone steaks for $6.50 a pound last night.
I'm sure cleaning products and such have gone up, but it's not something we buy very often, and because of that I don't really know the prices, we just buy a lot whenever it is on sale.
Here the power and gas haven't gone up yet, but I understand that is set to go up by 10s of percentage points soon.
What are people's specific experiences with inflation?
Even my local Fry's still has reasonable prices. Just picked up chick thighs for 99c per lb and pork shoulder roast for 1.49 per lb. Beef prices were reasonable but I already had a hefty freezer of beef. 5.47 per lbs of T-Bone and 3.47 per lbs of chuck roast.
Then again, since moving to West Phoenix, I've gotten most food here cheaper than anywhere else I have lived which includes KY, FL, TX.
I'm glad most of West Phoenix is supplied via local farms. I just got chicken thighs for 99c a pound and chuck roast for 3.47 a lbs, which is more than reasonable, better than pre-covid pricing really.
Inflation hasn't really kicked off yet.
An interesting phenomenon is happening globally. As prices rise, countries demand more and more USD in order to buy fewer and fewer things. Contagion is setting in and countries are defaulting on their loans, destroying dollar reserves banks thought they had. So the dollar is becoming very strong, holding prices in USD much lower than they should be. You can think of it as all fiat currencies falling against the value of goods, but the dollar is falling much, much slower than all other currencies.
So the USD is getting a free subsidy right now because it is still the reserve currency of trade.
However, once the new BRICS asset backed currencies are fully in play, banks get all their foreign currency correspondent accounts opened and established, and countries start shedding USD in order to balance their reserves with BRICS accounts, that artificial demand for the USD is going to plummet. (India just announced yesterday that all trade henceforth will be in INR)
That is when real inflation will start. That is when the dollar will weaken...a lot. This is just spring training. Expect the season opener in a couple of months.
Solid analysis!
...just in time for the midterms....
...compelling observation, nicely stated and framed....
Ok, I understand people are having a hard time. But I'm wondering if inflation is region specific. The reason I wonder is because I don't think my staples have gone up much.
Of course we are all paying insane gas prices.
But as for food, I eat mostly carnivore. Lamb chops have been $7.99 per pound at costco for years, costco sized packages of kerrigold butter hasn't gone up in a long time, eggs haven't gone up much, but I do think bacon has gone up some. We have at least 5 big grocery chains close to us, I can get quality steak for under $10 per pound from one of them each week. I bought 10 pounds of t-bone steaks for $6.50 a pound last night.
I'm sure cleaning products and such have gone up, but it's not something we buy very often, and because of that I don't really know the prices, we just buy a lot whenever it is on sale.
Here the power and gas haven't gone up yet, but I understand that is set to go up by 10s of percentage points soon.
What are people's specific experiences with inflation?
...valid observation...
Even my local Fry's still has reasonable prices. Just picked up chick thighs for 99c per lb and pork shoulder roast for 1.49 per lb. Beef prices were reasonable but I already had a hefty freezer of beef. 5.47 per lbs of T-Bone and 3.47 per lbs of chuck roast.
Then again, since moving to West Phoenix, I've gotten most food here cheaper than anywhere else I have lived which includes KY, FL, TX.
They're trying to finish off the middle class once and for all. This is probably just the beginning.
Filed under "Highly Probable".....
That gas price inflation is the gift that keeps on giving. If gas stays where it is you can expect several record setting months to come.
We are going into hyperinflation just like Venezuela. People will be taking their pets to the pound or eating them before it is over.
Trust the plan.
I'm glad most of West Phoenix is supplied via local farms. I just got chicken thighs for 99c a pound and chuck roast for 3.47 a lbs, which is more than reasonable, better than pre-covid pricing really.