Tuesday, September 27, 2016

Food Prices still falling


Oil rent removal continues apace... economorons at Fed probably think they will have to go negative.



17 comments:

Michael Norman said...

Yes that's coming. I think they will go negative now. Yellen is an idiot. #worstFedever

Greg said...

Best I can tell, prices in the stores aren't falling much. Consumers aren't getting lower grocery bills so once again the only ones receiving the "benefit" of this price fall are the guys who can get a larger margin of profit and then stuff it in their pockets.

And if prices fall off a cliff all that will happen is production will dry up and people will starve as producers can no longer sell for a profit.

Falling commodity prices will not help the average guy

Andrew Anderson said...

Actually, the most a risk-free deposit should return is 0% otherwise we have welfare proportional to wealth.

That said, individual citizen accounts at the central bank, when we are finally allowed to have them, should be negative interest free up to, say, $250,000 US.

Greg said...

I agree about the negative rates too. Probably within next 6 months.

BTW did either of you see Mike Sankowskis post over at Monetary Realism about the future of money? I thought it was pretty good. He says it will be about cancellation and control. Seems about right to me. Fascist/authoritarian CBers will lower the boom soon. Should be interesting

Matt Franko said...

Greg I see lower prices in stores for sure...

Matt Franko said...

No you would have interest income proportional to savings....

Greg said...

@Matt

Really? Ill take your word for it cuz although I do some of our shopping and I havent noticed much of a change in what WE buy, groceries are a small part of my monthly budget, fortunately for me, and I dont track it closely.

Restaurant prices aren't coming down.

My impression is this...shitty food is cheap (and has been for the most part) but the stuff that is good for you is expensive.

Andrew Anderson said...

Risk-free savings, beyond legitimate liquidity needs, are money hoarding.

But progress requires taking risks, not money hoarding. Thus positive interest on sovereign debt is anti-progress.

Matt Franko said...

Greg yes it is the less prepared foods that I see coming down...

Food sector with less labor component and more energy (oil) component...

Matt Franko said...

"progress requires taking risks"

No it doesn't ...

Bob said...

Never give up your rent willingly. I believe that is taught by all the major business schools.

Tom Hickey said...

Right, you worked hard to put yourself in a position to extract it.

Matt Franko said...

"Restaurant prices aren't coming down. "

Some are maybe just starting ... Keep an eye out...

Saw Buffalo Wild Wings and Olive Garden doing some big discounting ...

Bob said...

No change in Walmart's "Great Savings" brand, which is quite popular where I live.

Matt Franko said...

BWW leveraged to poultry (way down) and Olive Garden leveraged to wheat, eggs, and cheese (all down)...

Matthew Franko said...

loonie still stuck at 1.30 Bob

You guys have to get your oil prices back up in USD terms so the loonie will go back up... then you might see some deals on some things...

Andrew Anderson said...

Right, you worked hard to put yourself in a position to extract it. Tom

Rent is one thing, government welfare proportional to wealth is quite another.