Inflation....

TelesnaAg · May 5, 2023

We in Australia possibly have the dumbest central bank in the world if not the universe.

12 increases in 13 months and it hasnt made a zack of difference, maybe the silly old grey headed jokers start to realise this tool aint going to fix it, its seriously embarrassing.

Not all inflation can be controlled via interest rates.

Has anyone elses country or area put some policy in to help or are they all out there depth.

Alot of companies/corporations have shifted to a margin based business not a volume based business, and interest rates add to inflation which is what we are seeing here.

When labour markets are not managed correctly and financial infrastructure is not in place for small business then this is what you get, less employees can mean the same or more profit with less headaches.

Will be interesting to see where this goes.

As discussed on $ per hp thread, what incentive is there for JD to put on extra shifts to supply more tractors when they booked a year or two out??

The govt will have to raise tax here to pay for rampant covid spending, which will kill volume as they target the hardest workers.

Ant...

warksfarmer · May 5, 2023

U.K. is the same. Cutting taxes increases growth but instead they increase taxes

kiwi pom · May 5, 2023

Lots of rises here official cash rate 5.25%, I think property prices are falling, annual inflation 7.2%, the experts say its at its peak

DrWazzock · May 5, 2023

Raising taxes and interest rates because we are short of power generation and energy infrastructure seems like a particularly mad idea.

czechmate · May 5, 2023

And it got me thinking Roxy Music

…

soapsud · May 5, 2023

What Is Stagflation, What Causes It, and Why Is It Bad?

Stagflation is the combination of slow economic growth, high unemployment, and a high rate of inflation.

www.investopedia.com

The BoE bases its hopes on continued money issuing/debt incurring to keep GDP artificially high. Without all our state spending to keep itself proped up we'd be in a worse place. God help us when Labour gets in!

DaveGrohl · May 5, 2023

We’re all Argentina now.

DaveGrohl · May 5, 2023

soapsud said:
What Is Stagflation, What Causes It, and Why Is It Bad?

Stagflation is the combination of slow economic growth, high unemployment, and a high rate of inflation.

www.investopedia.com

The BoE bases its hopes on continued money issuing/debt incurring to keep GDP artificially high. Without all our state spending to keep itself proped up we'd be in a worse place. God help us when Labour gets in!

Considering the tax rate here now, I’m not sure Labour can outdo Sunak and Hunt frankly. Highest tax take since WW2. Under a Tory govt……

DaveGrohl · May 5, 2023

And as for UK food inflation, pah, we're not even trying.

colhonk · May 5, 2023

And yet us farmers are still getting shafted.

TelesnaAg · May 5, 2023

Im not denying we have inflation, its just using old methods to control it, which clearly arent working as there are different factors for the price increases.

They dont factor volume as much as they should plus things they cant control.

Our RBA governor, nice bloke just dumb as a bag of hammers, is citing we jeed to raise rates more becise energy prices tipped to rise....yeah ok...

Our gas and oil is sold on the world stage so reducing Australia's tiny demand will do zero, our power stations are on manadated pricing from the govt reviews, so they review power every 3 years and sign of on increases...reducing vomume for a mine does little as a large amount of the costs are fixed, plus they are closing power plants because of climate making the electricity rarer...then the central bank say we have to raise interest rates...there mad and clearly in bed with our banks. As they are now reporting big profits.

Most of these will be private educated amd woth degree...they wasted there money.

Ant...

Frodo · May 5, 2023

DaveGrohl said:
And as for UK food inflation, pah, we're not even trying.

View attachment 1109835

Can anyone explain how some countries are keeping it lower than others. Hungary and Italy are both in Europe, and food is fairly tradeable.

TelesnaAg · May 5, 2023

Frodo said:
Can anyone explain how some countries are keeping it lower than others. Hungary and Italy are both in Europe, and food is fairly tradeable.

Supply chain and export import models.

If italian farmers are working on volume, and rely on imports very little, they have the competition regardless of big biz to keep under control.

Exporters of italian goods are probably raping it as usual, or staying competitive and keeping up volume.

Some of our food jumped due to drought, when the rains come the female stock were used to re stock instead of go to feedlot, nothing to with consumer spending, now its dropping and so are supermarkets meat prices slowly.

Volume usually returns as someone gets gready, and when they jump you have to run with them otherwise they secure the marlet with cheaper products, some will try stay on margin based business, thos only works if supply stays tight, and id say this will extend long into the future more than normal, as margins are good and theres no real want to go to a volume model as it means more people and more headaches.

Ant...

TelesnaAg · May 5, 2023

Why is the Hungarian inflation the most problematic in Europe? - Daily News Hungary

Regarding all products, Hungarian inflation was the third-highest in Europe, but food prices rose by far the highest in Hungary.

dailynewshungary.com

The baseline they start from is also a factor...if they were along way behund and this were cheap there, some inflation may be purely from being re balanced into average prices in the EU.

Hence why hungary, turkey were favoured for tourists.

And places like albania are now taking there place.

you dont have to knock out much supply for your business to swap to a margin based business and survive.

Ant...

yoki · May 5, 2023

Large numbers of people continue to spend money they don't have on sh!t they don't need, not sure how anybody is supposed to 'fix' that.

And if some political party did try to address it seriously, they'd probably be out on their ear at the next general election, only to be replaced by another party who'd promise to make it easier again.

And that's not even looking at how any party who tried to reign in consumer spending would suddenly loose a lot of it's larger donors for that very reason as well.

som farmer · May 5, 2023

10% inflation this year, = 0% next, if prices don't rise.

Covid cost countries billions. It has upset the normal run of things financially. The energy crisis, just completely fudged it. That money has to be found and repaid, 10% inflation, reduces that borrowing, by 10% as well. So inflation has benefits as well.

But present policy, seems to be recover/repay that money by taxation, again that could have been the right thing to do, in previous periods. This time is slightly different, inflation has been caused by events, rather than consumer led. The cure, should be production based, produce more, to create more tax, employ more people, that pay tax, less 'social' payments.

Food inflation is the direct result of guvs policy, for decades, in keeping food cheap, to a point, where it cannot be produced, at the price they would like.

One could say, their policy, has just taken a big bite on their stupid ass.

teslacoils · May 5, 2023

Wonder how many more USA regional banks need to fail before folk start to take notice.

hoff135 · May 5, 2023

Whether interest rates are working or not, the fact is raising them does not seem to have bothered very many people. Those that said they wouldn't be able to afford their mortgage are still going off on foreign holidays and buying new cars. Just shows that there was no need to have had them so low for so long

TelesnaAg · May 5, 2023

yoki said:
Large numbers of people continue to spend money they don't have on sh!t they don't need, not sure how anybody is supposed to 'fix' that.

And if some political party did try to address it seriously, they'd probably be out on their ear at the next general election, only to be replaced by another party who'd promise to make it easier again.

And that's not even looking at how any party who tried to reign in consumer spending would suddenly loose a lot of it's larger donors for that very reason as well.

Exactly and this is why theybwill never lower the carbon footprint much on this planet, as consumption is carbon, and he who limits them gets voted out.

The price may be up, but volumes are down, the central banks think they will limit spending so business lowers there price...wrong...if they making margin, why go volume and low price when labour is tight and humans have never been more of a pia to employ.

They have mental health days, gender days, off sick, you dont get much work done for your money these days. Accountability is near gone.

Ant...

TelesnaAg · May 5, 2023

hoff135 said:
Whether interest rates are working or not, the fact is raising them does not seem to have bothered very many people. Those that said they wouldn't be able to afford their mortgage are still going off on foreign holidays and buying new cars. Just shows that there was no need to have had them so low for so long

I agree running them at 0 was idiotic, they didnt want to take any pain, again central bank failure, people in positions clearly out of there depth.

Ant...

Inflation....

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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