IMF: Global inflation is alarmingly low!

[Madison320]

"The global economy is strengthening but faces threats from super-low inflation and outflows of capital from emerging economies, the International Monetary Fund warned Tuesday."

http://news.ino.com/headlines/?newsid=282196476


This is an amazing propaganda victory for the Keynesians. 99% of these economists are going to look like idiots when we get a global fiat currency meltdown.

 

[Ronin Truth]

Gee, how much more worthless paper printing do they "think" the world needs? I've got two 100 trillion dollar bills framed and hanging on my office wall.

 

[Madison320]

Not that long ago the idea was to have a stable currency. Now a stable currency is "dangerous".

 

[acptulsa]

Not that long ago the idea was to have a stable currency. Now a stable currency is "dangerous".

Of course it is. Stable currency is dangerous to the profit margins of the banks that print the money.

If you don't believe me, just ask them. Oh, wait--no need. The IMF just said so. Of course, they tried to say what's bad for them is also bad for us. But you have to expect that from Keynesians and other people who have their heads up their own asses.

 

[Madison320]

Of course it is. Stable currency is dangerous to the profit margins of the banks that print the money.

If you don't believe me, just ask them. Oh, wait--no need. The IMF just said so. Of course, they tried to say what's bad for them is also bad for us. But you have to expect that from Keynesians and other people who have their heads up their own asses.

What gets me is the how quick and successful this propaganda has been. Just imagine if "health experts" started saying that drinking water was bad and in a few years every article you read is about the "dangers" of drinking water.

 

[specsaregood]

Of course it is. Stable currency is dangerous to the profit margins of the banks that print the money.

If you don't believe me, just ask them. Oh, wait--no need. The IMF just said so. Of course, they tried to say what's bad for them is also bad for us. But you have to expect that from Keynesians and other people who have their heads up their own asses.

They need inflation in order to keep the pyramid scheme alive...

 

[Dr.3D]

I'm still waiting for a bout of deflation. Seems like we've needed some for at least the last 60 years. Too bad every time it looks like there might be a bit of deflation, they absorb it by printing more money.

 

[acptulsa]

I'm still waiting for a bout of deflation. Seems like we've needed some for at least the last 60 years. Too bad every time it looks like there might be a bit of deflation, they absorb it by printing more money.

Seems like ever since they succeeded in turning deflation into a scary boogeyman, they've been doing everything they can think of to purposely trash the economy.

Maybe if we create a vocal demand, somehow, among the general population for deflation they'll at least stop deliberately destroying our gross national product. Of course they won't stop making money the old fashioned way--by printing it--but at least they might allow enough recovery to shut us up. It has to be worth a try, if we can find a way to do it.

 

[Madison320]

I'm still waiting for a bout of deflation. Seems like we've needed some for at least the last 60 years. Too bad every time it looks like there might be a bit of deflation, they absorb it by printing more money.

My theory is that by far the most important indicator of future price inflation is the expansion of the monetary base (QE). Much more so than low interest rates. Since we've quadrupled the monetary base over the last few years I would expect prices to do the same, even if they do the right thing and stop printing and raise interest rates.

 

[Peter4Paul2016]

Ron Paul stated that Janet Yellen’s policies “will likely lead to a financial crisis that could very well dwarf the meltdown of 2008.” Peter Schiff, another long time critic of the Federal Reserve was also quick to criticize these policies.

 

[vickersvimy]

I think you may be misunderstanding what the IMF are saying. They are worried because inflation has two types but the main one is to do with an increase of aggregate demand. In a depression or recession inflation will lower or deflation will start. They are worried because it may show a low amount of aggregate demand and so we may be in for a recession. They aren't calling for mass inflation.

 

[acptulsa]

I think you may be misunderstanding what the IMF are saying. They are worried because inflation has two types but the main one is to do with an increase of aggregate demand. In a depression or recession inflation will lower or deflation will start. They are worried because it may show a low amount of aggregate demand and so we may be in for a recession. They aren't calling for mass inflation.

And they aren't saying that outright because...?

Because they don't want people to question the official narrative that the Grand Recovery has been well underway for five or six years now? Because they don't want people to wonder if this incessant money printing is hindering, rather than helping, this mythical recovery?

In any case, I'm pretty sure they're being somewhat obtuse on purpose. The IMF doesn't want to be fully understood. And who can blame them? A thorough and widespread understanding of the true nature of the IMF could lead to undesirable consequences. Like tar and feathers.

 

[vickersvimy]

And they aren't saying that outright because...?

Because they don't want people to question the official narrative that the Grand Recovery has been well underway for five or six years now? Because they don't want people to wonder if this incessant money printing is hindering, rather than helping, this mythical recovery?

In any case, I'm pretty sure they're being somewhat obtuse on purpose. The IMF doesn't want to be fully understood. And who can blame them? A thorough and widespread understanding of the true nature of the IMF could lead to undesirable consequences. Like tar and feathers.

Actually on the part about the recovery you are right that it isn't working but not about the reason. "Printing money" as you put it isn't working because we are in a liquidity trap - banks aren't lending because people aren't buying because they have less wages and more debt because less people are buying...

They do seem to be trying to make it confusing though.

 

[Madison320]

Actually on the part about the recovery you are right that it isn't working but not about the reason. "Printing money" as you put it isn't working because we are in a liquidity trap - banks aren't lending because people aren't buying because they have less wages and more debt because less people are buying...

They do seem to be trying to make it confusing though.

The reason banks aren't lending is because people have no savings. People have no savings because interest rates are artificially low. Interest rates are artificially low because politicians were/are trying to get people to spend to create a short term boom so they can get re-elected. The solution is to shrink the size of govt, stabilize the currency, and allow the market to set rates. Unfortunately that would cause a sharp, short term recession/depression and no polititician is going to allow that.

 

[acptulsa]

The reason banks aren't lending is because people have no savings. People have no savings because interest rates are artificially low. Interest rates are artificially low because politicians were/are trying to get people to spend to create a short term boom so they can get re-elected. The solution is to shrink the size of govt, stabilize the currency, and allow the market to set rates. Unfortunately that would cause a sharp, short term recession/depression and no polititician is going to allow that.

Even though if we had done that five years ago, this painful recession would likely be long since over by now.

Reminds me of people who keep treating their cold symptoms for weeks when if they'd just let it run its course and suffer through it, they'd be completely over it in days. Wish we could convey this to the general population...

 

[vickersvimy]

The reason banks aren't lending is because people have no savings. People have no savings because interest rates are artificially low. Interest rates are artificially low because politicians were/are trying to get people to spend to create a short term boom so they can get re-elected. The solution is to shrink the size of govt, stabilize the currency, and allow the market to set rates. Unfortunately that would cause a sharp, short term recession/depression and no polititician is going to allow that.

Not so much. The banks did lose money however that was because people took out too much debt. The Gov. bailed them out but no-one was taking out loans because they couldn't afford them.

 

[acptulsa]

Not so much. The banks did lose money however that was because people took out too much debt. The Gov. bailed them out but no-one was taking out loans because they couldn't afford them.

The government bailed them out and they foreclosed on millions of homes.

It was a real win-win. If you're a banker. For the nation as a whole, not so much.

 

[vickersvimy]

The government bailed them out and they foreclosed on millions of homes.

It was a real win-win. If you're a banker. For the nation as a whole, not so much.

I agree. More should have been demanded - we should have forgiven the debts.

 

[Madison320]

Not so much. The banks did lose money however that was because people took out too much debt. The Gov. bailed them out but no-one was taking out loans because they couldn't afford them.

So people just randomly decided to take out too much debt? All at once, the whole nation was consumed by animal spirits and they all decided to go into debt?

Or maybe, just maybe, it was because interest rates were set artificially low.

 

[Carson]

Nabisco's Oreo cookies
We Americans love our Oreos!
[1913] 10-25 cents/no size
[1922] 32 cents/lb
[1931] 32-35 cents/lb
[1932] 25 cents/lb
[1934] 27 cents/lb
[1936] 10 cents/pkg
[1948] 15 cents/4.5 oz
[1949] 14 cents/4.25 oz
[1950] 34 cents/11 oz
[1952] 35 cents/11 oz
[1953] 23 cents/7.25 oz
[1954] 21 cents/7.25 oz
[1955] 39 cents/11.75 oz
[1956] 33 cents/11.75 oz
[1957] 35 cents/12.75 oz
[1958] 33 cents/11.75 oz
[1959] 37 cents/11.75 oz
[1960] 45 cents/lb
[1961] 45 cents/lb
[1962] 49 cents/lb
[1963] 45 cents/lb
[1964] 39 cents/lb
[1965] 43 cents/lb
[1966] 43 cents/lb
[1967] 49 cents/lb
[1968] 45 cents/lb
[1969] 51 cents/lb
[1970] 45 cents/15 oz
[1971] 55 cents/15 oz
[1972] 49 cents/lb
[1973] 49 cents/15 oz
[1974] 55 cents/15 oz
[1975] 89 cents/15 oz
[1976] 99 cents/19 oz
[1977] 89 cents/15 oz
[1978] 79 cents/15 oz
[1979] 1.05/15 oz
[1980] 99 cents/15 oz
[1981] 1.69/19 oz
[1982] 1.65/19 oz
[1983] 1.85/19 oz
[1984] 1.79/20 oz
[1985] 2.17/19 oz
[1986] 1.69/20 oz
[1987] 1.99/20 oz
[1988] 2.49/20 oz
[1989] 2.49/20 oz
[1990] 2.69/lb
[1991] 2.39/lb
[1992] 1.99/20 oz
[1993] 1.19/5.8 oz
[1994] 2.49/20 oz
[1995] 1.09/4.8 oz
[2004] 2.99/lb
[2008] 4.29/18 oz
[2012] 4.59/15.5 oz
[2013] 4.59/14.3 oz
SOURCES: food ads published in major U.S. newspapers included in ProQuest's Historic Newspaper database, 2000+ recent prices from FoodTown, Cedar Knolls NJ.


Food timeline;

http://www.foodtimeline.org/foodfaq5.html#oreoprices