or too few paper money competes for food abundance corn soya wheat getting cheaper - food abundance !!!
Brazil has expanded its export of corn due to the high demand from China. Also, a fellow BRICs member. China in retaliation for sanctions imposed by the US has cut off the US corn exports to China from 31% to just 5% now. US farmers facing huge losses as US inventories of corn and soy beans rise. China buying the bulk of its corn from Brazil now. US getting a dose of sanctions from China now. Economic war is messy and not one sided as Western media makes it seem.
I have a modification: "too much paper money competes for a shrinking share count in the US stock market" Think about it.
The ONLY reason we have inflation is GREEDY POLITICIANS... Always trying to "get something for nothing" by printing money. At some point, we can't take it any longer and get overwhelmed. (Right around the corner, if not already.)
The US consumers also benefitted from the cheap corn, soy, and wheat. The Brazilians are happy with their fantastic export sales. China happily bought cheap corn to feed their pigs. When someone is happy, some other people might be sad.
Europe imposed 38% tariffs on Chinese EV cars, Chinese retaliated by taxing Cognac (38%) and other wines. France and Italy are very much affected by new Chinese tariffs on Cognac and luxury items like Louis Vuitton. Also, China now buying more pork from Russia and much, much less from Europe, another hit for them. European economies will take a huge nose dive because of the high Chinese tariffs.
The Big Mac index was created by The Economist magazine as an informal way of measuring the purchasing power parity between different countries and currencies. The idea is that in every country, the Big Mac sold at McDonald’s is the same. The price of the Big Mac should reflect the local price of ingredients, wages and other expenses like advertising. Therefore, even though the Big Mac sandwich is the same in every country, its price differs. Many people use the Big Mac index to roughly gauge the relative strength of foreign exchange rates. But does this price index also reflect a country’s inflationary pressures? In this blog post, we compare U.S. data from the Big Mac index to the U.S. consumer price index (CPI) for all items, which is the headline price index number that gets reported in the media. The Big Mac and the CPI In the figure below, we plot biannually the price of the Big Mac and the CPI, which are normalized to 100 in January 2012. As we can see, since 2012, the indexed price of the Big Mac has been above the CPI, but the two move similarly. However, when inflation started to take off in 2021, the price of the Big Mac did not increase as fast as the CPI.
The US banned cotton from Xinjiang China. And the world population keeps on growing from 1 to 6 or 7 billions. in just a few decades. And there is flood and famine and hurricane and El Nino and La Nina here and there. Yet the Cotton is getting cheaper and cheaper. Supply is simply very very much higher than demand.