19 Feb 11
Originally posted by PalynkaThe CPI numbers are lies. It is more like 6 - 7%.
Holding it's value? 😕
What do you think would happen to consumer prices in the new currency when gold rises by about 30% in one year (since Feb 2010)? Note that CPI inflation in US dollars was less than 2% during this period.
It is amazing that the rise in agriculture commodity prices is blamed on bad weather. Only a naive dolt would believe that.
No 1 will come along soon and blame it on global warming and want to tax carbon emissions. Meanwhile, Al Gore is searching for manbearpig. That is it, manbearpig ate all the cotton from the fields. That is why the price doubled. Go Al Gore!
19 Feb 11
Originally posted by AThousandYoungRight, we have never had silver coins in circulation.
You can't peg a currency to two different commodities. If silver was discovered all over the world in easy to harvest form, the silver to gold ratio would change.
I have a bunch of older quarters that are 90% silver.
What are you thinking?
19 Feb 11
Originally posted by Metal BrainHow about blaming it on increased demand?
The CPI numbers are lies. It is more like 6 - 7%.
It is amazing that the rise in agriculture commodity prices is blamed on bad weather. Only a naive dolt would believe that.
No 1 will come along soon and blame it on global warming and want to tax carbon emissions. Meanwhile, Al Gore is searching for manbearpig. That is it, manbearpig ate all the cotton from the fields. That is why the price doubled. Go Al Gore!
19 Feb 11
Originally posted by Metal BrainAnd yet those quarters never varied from being worth 25 cents, even when the metal they were made of was worth more. The value of those quarters was not based on the value of the metal they were made o
Right, we have never had silver coins in circulation.
I have a bunch of older quarters that are 90% silver.
What are you thinking?
19 Feb 11
Originally posted by AThousandYoungTrue, but you can't buy them for 25 cents.
And yet those quarters never varied from being worth 25 cents, even when the metal they were made of was worth more. The value of those quarters was not based on the value of the metal they were made o
We have also had currency redeemable in silver before. There is no reason it cannot be done again.
19 Feb 11
Originally posted by KazetNagorraPrices have increased a lot in a short period of time.
From increased consumption in Asia and from biofuels.
Crop yields don't increase that fast in order to meet demand.
Why all the sudden now? Cotton was not in that high demand a year ago. Did they just decide to buy more as a new years resolution?
Cotton is not a biofuel. I'm sure the seed oil could be used for biodiesel but I think that is rare.
19 Feb 11
Originally posted by Metal BrainOf course there's always speculation and local events which distort prices. Maybe cotton producers had bad yields?
Prices have increased a lot in a short period of time.
Why all the sudden now? Cotton was not in that high demand a year ago. Did they just decide to buy more as a new years resolution?
Cotton is not a biofuel. I'm sure the seed oil could be used for biodiesel but I think that is rare.
19 Feb 11
Originally posted by Metal BrainMore numbers pulled out a hat. Whatever. Call it 7% then.
The CPI numbers are lies. It is more like 6 - 7%.
It is amazing that the rise in agriculture commodity prices is blamed on bad weather. Only a naive dolt would believe that.
No 1 will come along soon and blame it on global warming and want to tax carbon emissions. Meanwhile, Al Gore is searching for manbearpig. That is it, manbearpig ate all the cotton from the fields. That is why the price doubled. Go Al Gore!
The price of gold in USD went up by 30%, the price of other goods your 7%. So the relative price of goods went up more than 4 times the price of other goods. What would this mean for prices in a gold backed currency?
19 Feb 11
Originally posted by KazetNagorraDon't you think the global currency wars are a factor? Many countries are debasing their currencies. You are from Europe. Isn't the ECB doing about the same thing as the USA with quantitative easing?
Of course there's always speculation and local events which distort prices. Maybe cotton producers had bad yields?
http://theeconomiccollapseblog.com/archives/[WORD TOO LONG]
19 Feb 11
Originally posted by PalynkaI gather you think gold and silver are overvalued. You are entitled to that opinion.
More numbers pulled out a hat. Whatever. Call it 7% then.
The price of gold in USD went up by 30%, the price of other goods your 7%. So the relative price of goods went up more than 4 times the price of other goods. What would this mean for prices in a gold backed currency?
Some would argue that future inflation is priced into the cost of gold and silver to an extent. QE2 has not worked it's way through the economy yet. We are just starting to see the effects of QE1 now.
The FRS is unlikely to raise interest rates to counter inflation. They know the economy will tank if they do. That is why we are being given all of this propaganda about how these high commodity prices will not result in much inflation. It is a lie and Bernanke knows it.
Oops, behind the curve again. Maybe next time we will get it right. Monetary policy is tricky ya know.
19 Feb 11
Originally posted by Metal BrainAs far as I am aware the ECB is not doing any quantitative easing at the moment - the ECB also has a different mandate than the Fed as the ECB's goal is to watch over stability and inflation, while the Fed's purpose is to also do this but balance this with encouraging growth. The Bank of England has been doing QE and they've been troubled by inflation quite a bit.
[b]Don't you think the global currency wars are a factor? Many countries are debasing their currencies. You are from Europe. Isn't the ECB doing about the same thing as the USA with quantitative easing?
http://theeconomiccollapseblog.com/archives/[WORD TOO LONG]/b]
19 Feb 11
Originally posted by Metal BrainAre you going to answer the question or keep diverting?
I gather you think gold and silver are overvalued. You are entitled to that opinion.
Some would argue that future inflation is priced into the cost of gold and silver to an extent. QE2 has not worked it's way through the economy yet. We are just starting to see the effects of QE1 now.
The FRS is unlikely to raise interest rates to counter inflation ...[text shortened]... ehind the curve again. Maybe next time we will get it right. Monetary policy is tricky ya know.
19 Feb 11
1 edit
Originally posted by Metal BrainWhat? I thought the CPI was all lies? Which index are you using to measure prices, and how did it perform over the time period in Pal's post?
Prices have increased a lot in a short period of time.
Why all the sudden now? Cotton was not in that high demand a year ago. Did they just decide to buy more as a new years resolution?
Cotton is not a biofuel. I'm sure the seed oil could be used for biodiesel but I think that is rare.
Unless you're using a ridiculous index I guarantee prices didn't move by 30% over that period.