So lets go back some years and think back to the time when oil was surging and all these companies that deliver goods and services were adding all these extra fuel surcharges, hey even my local pizzeria raised prices on his pizza to make up for the huge rise in commodities.... Now let's fast forward... Commodities are down huge and oil and fallen off a cliff yet prices are still rising....I haven't seen my local pizza guy knock off 25 cents off the slice of his pizza because oil is down over 65% in the last 2 years...I haven't seen prices of good or services come down at all with the drop in commodity prices..go to any supermarket and check the prices of fruit and cereal...check-out how much it cost to send a guy to just look at your broken washer machine or dishwasher....always quick to add a surcharge or increase the price of a slice of pizza but never take it away when prices fall.....hopefully a deep recession will keep people in check and maybe balance things out in the long run because all those free trillions the fed pumped into the system really fuc$ked things up. http://www.cnbc.com/2016/02/10/oil-...s-hit-record-high-economic-woes-continue.html
This is idiotic. By your logic, so should everyone's pay. Have you or anyone you know talked to their boss and said give me a pay cut? This is why inflation is critical to growth. It allow our little capital market to keep rolling in a pyramid scheme. More debt... roll the debt forward....pay off w/ less valuable asset via inflation...take on more debt. Eventually, shit hits the fan on the credit market when inflation stops naturally. This is when government kicks in w/ printing and devaluation. Savers get whipped out. Debt-ers get saved - these debt carries include GE, F, GM, your well known banks, local pizza joints, etc. So if you actually want to have some sorta of a decent living, you would want your pizza prices to go up, preferably by $0.1 cents... not jump by a $1 b/c shit has hit the fan.
Markets blow up when top down monetary controls fuzz out natural market signals... Then the monetists call for more intervention... Then more and then more.... It's never worked out in the long run... It's akin to drinking more to get sober.. I heard someone pst that the other fay
Consumers are still paying a lot more for commodities than they were fifteen years ago. Here's a pic of the spot price of commodities. This is what consumers have actually paid for them. The crb index that is making new lows is what investors in futures contracts have earned speculating in commodities. Those lower prices reflect that there is a cost to carry and that is primarily why they're lower.
wrong. monetarists never claim that intervention is a solution. monetarists believe that money supply should grow at the same rate as productivity.
Meaning increase money supply as growth increases??? Cause that's exactly the opposite of what they do... They increase the money supply when the shit hits the fan