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Inflation beginning due to Feds QE

By rigidmember follow rigidmember   2013 Mar 27, 7:32am 5,634 views   12 comments   watch   nsfw   quote   share      


While monthly headline inflation data continues to come in below the Fed's 2% target, Kenny and many other market watchers see it showing up elsewhere "in everything we assume is a part of our daily life."
Those items include the classic data carve-outs of food and fuel, as well as in commodities, and even in things like farm land - despite ongoing drought conditions.
By his math, the cost of Q-E, at least as it pertains to crude oil, is pushing up the price by about 50%, instead of the $65 a barrel level where he thinks current supply and demand metrics imply that it really should be. But since the Fed is actively (and justifiably) putting more dollars into the economy, he says that has resulted in "more dollars chasing that fuel," which of course leads to higher prices.

http://finance.yahoo.com/blogs/breakout/fed-unintended-consequences-hitting-everyday-life-kenny-134021901.html

1   tdr   ignore (0)   2013 Mar 27, 9:30am     ↓ dislike (0)   quote   flag        

Yeah, the inflation rate is low as long as you don't need to eat or travel in your car.

2   Bellingham Bill   ignore (5)   2013 Mar 27, 4:41pm     ↓ dislike (0)   quote   flag        

Nah, I actually compared my Trader Joes receipt from March to October's (I house-sit in Santa Cruz occasionally and buy the same stuff each time).

Same, to the penny.

Now, TJ fruit generally sucks, yes.

3   New Renter   ignore (11)   2013 Mar 27, 6:59pm     ↓ dislike (0)   quote   flag        

Are you kidding? Two buck Chuck shot up to two buck fifty cent Chuck. That all happened within a day!

Zimbabwae ain't got nothing on us!

5   rigidmember   ignore (0)   2013 Mar 28, 12:56am     ↓ dislike (0)   quote   flag        

^^^^^^

This is what I notice everywhere now. I believe everything costs more than a year ago since either the prices increase or the quantity decreases.

7   NDrLoR   ignore (1)   2013 Mar 28, 2:22am     ↓ dislike (0)   quote   flag        

I notice it in little, insignificent things that I buy all the time, like my Blackburn's (made in Jefferson, TX since 1927) butter maple waffle syrup that was $1.95 last year and is now $2.17.

8   curious2   ignore (0)   2013 Mar 31, 7:03am     ↓ dislike (0)   quote   flag        

I've been seeing a mix of prices. Housing costs have increased dramatically due to federal manipulation. Packaged foods have also increased in price or reduced quantities or substituted cheaper ingredients (I noticed a popular alfredo sauce got replaced with a new "cheesy" version - yes they call it that - and the new version uses soy and corn starch instead of parmesan). Gasoline prices remain high, but not as high as during the W administration. Ground coffee and cocoa seem to be falling, while chocolate seems to have increased.

9   Bellingham Bill   ignore (5)   2013 Mar 31, 7:55am     ↓ dislike (0)   quote   flag        

http://research.stlouisfed.org/fred2/series/GASREGCOVWCA

gas prices went from $1.50 to $3.50 prior to QE

and $3.50 to $4.00 with QE

10   kt1652   ignore (1)   2013 Mar 31, 10:28am     ↓ dislike (0)   quote   flag        

tdr says

Yeah, the inflation rate is low as long as you don't need to eat or travel in your car.

Or you don't pay for college, nor Health Insurance.
Damn bubble in Blue Chip collector cars, we are so phucked, buy now or be priced out forever.

11   kt1652   ignore (1)   2013 Mar 31, 11:37am     ↓ dislike (0)   quote   flag        

robertoaribas says

college tuition has increased mostly due to states completely abandoning financial support. When I moved to AZ, the state government funded 30% of the community college budget (county property taxes covered another 30% or so), and over 50% of the state universities. Now, it is down to something like 8%. We are close to having zero state financial support, and yet we still answer to a state board... go figure!

QE didn't do much of anything to gas; gas prices collapsed into the recession, because they had not anticipated it, and the oil was already out of the ground, global growth in demand and the ending of the world wide recession, plus a rebound from crashed prices caused the increase.

get an efficient car, and live close to work. the world of cheap gas, excepting some very special circumstances, is long over.

Gas/oil prices would be higher if not for the resurgence of energy exploration and production.(shale/sand)
I drive a plug-in that gets 90mpg on short trips.
The US is on her way to energy self sufficiency.
Edit: Fix format error. Added link
http://newsoninvest.com/?p=11130

http://www.ft.com/cms/s/0/b2202a8a-2e57-11e2-8f7a-00144feabdc0.html#axzz2PAcvajk8

12   New Renter   ignore (11)   2013 Apr 5, 9:23am     ↓ dislike (0)   quote   flag        

kt1652 says

tdr says

Yeah, the inflation rate is low as long as you don't need to eat or travel in your car.

Or you don't pay for college, nor Health Insurance.

Damn bubble in Blue Chip collector cars, we are so phucked, buy now or be priced out forever.

Maybe you should change your avatar from a classic Jaguar to a Ferrari


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