Big inflation bump in January

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Link

Inflation at the wholesale level soared in January, pushed higher by rising costs for food, energy and medicine. The monthly increase carried the annual inflation rate to its fastest jump in a quarter century.

Well, this is lovely, isn't it?

My only commentary is save yourselves and save your money. Take that rebate check in May and drop 'er in a savings account or invest in something that will work later, like maybe wheat or oil

 

[Rio Rebel]

Why would you advise people to save money during an inflationary period? The money is worth less.

 

[Slew Foot]

That savings account will net you a 3% thanks to Helicopter Ben. Youre better off buying a years supply of noodles or something.

Home prices take the biggest plunge ever during the last quarter of teh year (8.9%), comsumer confidence WAYYY lower than expected, crappy news opn the econ front today.

Oh yeah, google says its profits are getting stuck, they're taking a nose dive today.

 

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Originally posted by: Rio Rebel
Why would you advise people to save money during an inflationary period? The money is worth less.

For when we all lose our jobs!!

 

[Rio Rebel]

Actually, our jobs are safer. The one good thing about the plunge of the value of the dollar is that offshore outsourcing is now more expensive.

Add the fact that India's workforce is beginning to demand higher salaries, and the value proposition of outsourcing is now much less than what it was a few years ago.

So as our economy falls, our jobs are safer.

 

[Hayabusa Rider]

Originally posted by: Rio Rebel
Actually, our jobs are safer. The one good thing about the plunge of the value of the dollar is that offshore outsourcing is now more expensive.

Add the fact that India's workforce is beginning to demand higher salaries, and the value proposition of outsourcing is now much less than what it was a few years ago.

So as our economy falls, our jobs are safer.

What if they outsource moderator positions? :Q

 

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Originally posted by: Rio Rebel
Actually, our jobs are safer. The one good thing about the plunge of the value of the dollar is that offshore outsourcing is now more expensive.

Add the fact that India's workforce is beginning to demand higher salaries, and the value proposition of outsourcing is now much less than what it was a few years ago.

So as our economy falls, our jobs are safer.

Hey, I had to put a commentary down on SOME aspect of it

 

[dullard]

Here is the snapshot of the economy that I use. Look at that and tell me which statistics are heading in the right direction.

 

[PingSpike]

I'm busy replenishing/building my emergency fund after buying a house anyway...but yeah, even I am tempted to actually buy a lot of solid goods/materials before they go up in price. Its annoying...I'd like to build a shed/garage, put in some hardwood floors and do something with our kitchen. I plan to save up for these things and do them, but its certainly irritating having the cost of those things go up while the value of your savings account money goes down.

 

[Skitzer]

Originally posted by: dullard
Here is the snapshot of the economy that I use. Look at that and tell me which statistics are heading in the right direction.

Interesting charts ....... I'm sure they are correct but where did you obtain them?

 

[dullard]

Originally posted by: Skitzer
Interesting charts ....... I'm sure they are correct but where did you obtain them?

Change in real GDP: Bureau of Economic Analysis.

Inflation: Bureau of Labor Statistics.

S&P: Yahoo Finance historical stock prices, graphed monthly.

Housing: Realtor.org combined with Census.gov.

 

[piasabird]

Real Inflation is probably higher than reported because food prices are not always factored in. This silly plan to use Corn to supplement gas is really bad for our economy. A lot of food stuffs and sweeteners of all kinds are causing a lot of food to go up in price because of the price of the Corn is going up. It is like all food has gone up at least 30% because of Corn.

 

[CycloWizard]

Good for me. I owe a fair chunk of change to the student loan vendors, so a low interest rate and high inflation makes me money. Hopefully I can get off of my fixed grad student income soon, then I'll be good to go.

 

[brxndxn]

Originally posted by: piasabird
Real Inflation is probably higher than reported because food prices are not always factored in. This silly plan to use Corn to supplement gas is really bad for our economy. A lot of food stuffs and sweeteners of all kinds are causing a lot of food to go up in price because of the price of the Corn is going up. It is like all food has gone up at least 30% because of Corn.

Fuck corn. Corn sucks.

 

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Originally posted by: dullard
Here is the snapshot of the economy that I use. Look at that and tell me which statistics are heading in the right direction.

The third one is going up at a high enough rate to actually negate the downward trend on the other three (it goes up an inch and the others go down combined about an inch), so basically it's a net effect of zero. That could be worse, I guess!

 

[LegendKiller]

Originally posted by: piasabird
Real Inflation is probably higher than reported because food prices are not always factored in. This silly plan to use Corn to supplement gas is really bad for our economy. A lot of food stuffs and sweeteners of all kinds are causing a lot of food to go up in price because of the price of the Corn is going up. It is like all food has gone up at least 30% because of Corn.

The BLS released 2 statistics, core and full. Both came in higher, many expected core to be at .2%, which turned out to be .4%. They expected the full PPI to be .4% and it came in at 1%. Keep in mind that the full PPI includes all food prices, which accelerated in Jan, somewhat due to wheat ballooning due to a global wheat supply reduction. Also keep in mind that this index posts volatile numbers.

There are a lot of issues going on here, including global weather occurances from the past year. That includes hard freezes, droughts, and accelerating demand for US crops since the dollar has fallen, making our domestic goods cheaper. This will provide support for the dollar.

After talking to some traders here, a lot of commodity prices are going up because hedge funds are going into the markets. Since the commodity markets are rather small compared to the amount of capital the funds can toss around, you're seeing wild variability.

 

[Mxylplyx]

Originally posted by: piasabird
Real Inflation is probably higher than reported because food prices are not always factored in. This silly plan to use Corn to supplement gas is really bad for our economy. A lot of food stuffs and sweeteners of all kinds are causing a lot of food to go up in price because of the price of the Corn is going up. It is like all food has gone up at least 30% because of Corn.

Thank the dumbass gullible environmentalists and the politicians that so easily fool them for votes, while at the same time helping their farm buddies, for that.

 

[EagleKeeper]

Originally posted by: Hayabusa Rider

Originally posted by: Rio Rebel
Actually, our jobs are safer. The one good thing about the plunge of the value of the dollar is that offshore outsourcing is now more expensive.

Add the fact that India's workforce is beginning to demand higher salaries, and the value proposition of outsourcing is now much less than what it was a few years ago.

So as our economy falls, our jobs are safer.

What if they outsource moderator positions? :Q

They already did.

 

[sandorski]

Originally posted by: Mxylplyx

Originally posted by: piasabird
Real Inflation is probably higher than reported because food prices are not always factored in. This silly plan to use Corn to supplement gas is really bad for our economy. A lot of food stuffs and sweeteners of all kinds are causing a lot of food to go up in price because of the price of the Corn is going up. It is like all food has gone up at least 30% because of Corn.

Thank the dumbass gullible environmentalists and the politicians that so easily fool them for votes, while at the same time helping their farm buddies, for that.

Politicians and Agri-business. Environmentalists didn't push it near as hard, what they did was to push Alternatives to Petroleum.

 

[Rio Rebel]

Originally posted by: Common Courtesy

Originally posted by: Hayabusa Rider

Originally posted by: Rio Rebel
Actually, our jobs are safer. The one good thing about the plunge of the value of the dollar is that offshore outsourcing is now more expensive.

Add the fact that India's workforce is beginning to demand higher salaries, and the value proposition of outsourcing is now much less than what it was a few years ago.

So as our economy falls, our jobs are safer.

What if they outsource moderator positions? :Q

They already did.

The whole point of outsourcing is to get your work done at a cheaper cost. How can it get any cheaper than "free"?

 

[NoStateofMind]

OMG! Its NOT inflation! Its everything BUT!

 

[LegendKiller]

Originally posted by: PC Surgeon
OMG! Its NOT inflation! Its everything BUT!

And you, among others, would like to classify it as a definite trend. If you look at prior month's numbers you can see that these numbers vary quite a bit.

Additionally, it's not inflation, per se, in your defined terms. You like to classify inflation in terms of monetary expansion. It's perfectly clear in this case that exogenous circumstances to monetary policy are causing problems. I have listed out several of these circumstances, which I am sure you are more than willing to dismiss in your zeal to pin all of the world's problems on the Fed.

 

[nullzero]

Originally posted by: Skoorb

Originally posted by: Rio Rebel
Why would you advise people to save money during an inflationary period? The money is worth less.

For when we all lose our jobs!!

You should be advising people to obtain and save hard assets... gold, land, farms, etc.

 

[NoStateofMind]

Originally posted by: nullzero

Originally posted by: Skoorb

Originally posted by: Rio Rebel
Why would you advise people to save money during an inflationary period? The money is worth less.

For when we all lose our jobs!!

You should be advising people to obtain and save hard assets... gold, land, farms, etc.

No no no no NO! Invest in Fiat, it is the savior of economic progress!! Fiddling with such archaic commodities such as land and gold :disgust:


Wake up and smell the fiat revolution! It's is definitely good, look, everyone else is doing it!

 

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Oh, plese, not this gold standard nonsense again!