Inflation....

[pellow]

The US are raising their interest rate to make holding their currency attractive to countries trading in USD so they don't use an alternative currency, every other western country has to raise their interest rate in line with the USD otherwise their currency will be devalued against the USD

 

[yoki]

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

That's the nonsense of the 'green agenda' in a nutshell right there.

 

[teslacoils]

The US are raising their interest rate to make holding their currency attractive to countries trading in USD so they don't use an alternative currency, every other western country has to raise their interest rate in line with the USD otherwise their currency will be devalued against the USD

Because a strong currency is good?

 

[pellow]

Because a strong currency is good?

A weak currency against the USD would cause more price inflation on products priced in USD

 

[DaveGrohl]

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.

The word "cost" always makes me smile. In this case (and previously) they invented huge amounts of money. Money printing isn’t new and it always ends in the same thing. That "new" money always devalues total money. And that new money still ends up somewhere. It’s not a "cost" as such, but it devalues itself. Whether it ends up in someone’s bank account or balance sheet makes no difference. What’s different this time is that it’s actually had an effect on food prices which has come as quite a shock to the first world countries. Meanwhile, the UK and US spend the lowest % of av income on food. That’s why we’re making the most noise…

 

[teslacoils]

A weak currency against the USD would cause more price inflation on products priced in USD

This is, and has been the problem, with all reserve currencies. But again that would be "external shock" inflation and not systemic inflation.

Currency may, and does, move to the dollar in times of high inflation not due to relative interest rates but simply for safety. This is seen now and recently in the rush for Swiss Franks.

What is needed there are short term currency controls.

Its similar to this months outpouring from UK banks to National Savings. Folk will take a lower return for safety as interest rates alone are not the only factor in currency "investment" ie not used for short term trade.

 

[robs1]

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

View attachment 1109835

Bet that won't get posted on the Brexit thread, and in many countries food is a fair bit more than here already.
Governments are happy with inflation for a year or two especially with Putin to blame it on.
Reduces the value of the covid debt and higher vat on increased prices, higher nat ins and income tax on wages to pay off a bit more of that debt, the only cost is higher public service wages

 

[Robw54]

I’m calling a peak. There’s a lot on the bandwagon but everything from fuel , houses , auction car prices, wheat, electric, stock markets etc all dropping double digits. Won’t get back where we were but starting to feel things are becoming more competitive.

Now that might fuel a second peak as people feel a little more in their pockets and getting 10% rises. Wanted nipping in the bud in 2021, was plain as day.

 

[tullah]

All Kneeler does is tell the masses he's going to give them a higher standard of living and they believe him and he's voted in. There's no such thing as an ever increasing standard of living but still they all think they can have it.
A basic logic test is needed for everyone about how to cut up a cake before being eligible to vote.

 

[czechmate]

All Kneeler does is tell the masses he's going to give them a higher standard of living and they believe him and he's voted in. There's no such thing as an ever increasing standard of living but still they all think they can have it.
A basic logic test is needed for everyone about how to cut up a cake before being eligible to vote.

hmm, but I suppose so far, the standard of living is always getting higher. It’s not like we are all still living in caves

 

[warksfarmer]

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

In some areas property prices have dropped by 15%.

I know a few private investors and they are adamant the banks are in trouble and this time they won’t be bailed out. They are getting into land (in particular renewables) and property.

 

[BrianV]

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

Top 10 hedge funds made £1.5bn profit from Ukraine war food price spike​

Analysis covering first quarter of last year raises questions over role of speculators in inflating food prices
hedge-funds-profit-ukraine-war-food-price-surge

 

[Canada Farmer]

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...

Unfortunately Australia hasn't got the monopoly of f**ktards, just look at Freeload Freeland!!!

 

[DaveGrohl]

I’m calling a peak. There’s a lot on the bandwagon but everything from fuel , houses , auction car prices, wheat, electric, stock markets etc all dropping double digits. Won’t get back where we were but starting to feel things are becoming more competitive.

Now that might fuel a second peak as people feel a little more in their pockets and getting 10% rises. Wanted nipping in the bud in 2021, was plain as day.

We’re well past the peak. The official numbers will catch up eventually.

 

[DaveGrohl]

Top 10 hedge funds made £1.5bn profit from Ukraine war food price spike​

Analysis covering first quarter of last year raises questions over role of speculators in inflating food prices
hedge-funds-profit-ukraine-war-food-price-surge

Er, that’s their job….

 

[ollie989898]

Er, that’s their job….

Any kind of instability is a boon for this kind of investor. They don't care if it's up/down, good or bad, they can make money out of it.

 

[Macsky]

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

View attachment 1109835

I struggle to believe it’s that low, I came out of the local Coop today with three carrier bags and some milk after spending £90!!! It’s unreal

 

[red]

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

It depends on which taxes you cut, Truss nearly crashed the economy.
Remember the whole ethos of Capitalism is that the markets know best and they voted Truss and her administration a bunch of morons. Bare in mind she was following Patrick Minford’s economic philosophy (Minford who brought down Thatcher with his idiotic Poll Tax and he was a leading advocate for Brexit)

 

[soapsud]

I struggle to believe it’s that low, I came out of the local Coop today with three carrier bags and some milk after spending £90!!! It’s unreal

Yeah, but how much of that was Speyside Single Malt given we wee southerners can get it cheaper!

 

[som farmer]

It depends on which taxes you cut, Truss nearly crashed the economy.
Remember the whole ethos of Capitalism is that the markets know best and they voted Truss and her administration a bunch of morons. Bare in mind she was following Patrick Minford’s economic philosophy (Minford who brought down Thatcher with his idiotic Poll Tax and he was a leading advocate for Brexit)

and some say, it was a bold move, that could have worked brilliantly.

the money market decided otherwise, and it flopped badly. I do wonder how much money the 'market' made though.

l wouldn't have a clue about if it could have worked or not, but it showed who is in charge of the economy !