What will accompany inflation here?

[scaredyclassic]

I think an oatmeal/ nut/ banana/ veggie/ herring diet may cost about the same as 5 years ago.

[flyer]

More on utility rates. . .

CA electric rate reform adjusts rates from 2001 crisis

[SD Realtor]

Wrong scaredy, bananas, nuts, oatmeal and veggies are all approximately 20% more then 5 years ago.

Now the herring may not be!

[CA renter]

[quote=livinincali]If the fed continues tapering why would you expect inflation? The inflation already happened. It’s staring you right in the face with record levels on the DOW and S&P. I expect to see deflation in asset prices once the spigot gets turned off. It will likely get pretty bad because there’s tons of leverage being used to bet on higher assets prices right now. Margin debt in the stock market is at record highs.

I actually expect main street to weather the coming crash in assets prices better than it has in the past because it hasn’t been benefiting much from rising asset prices. Also many companies have cash reserves so that they aren’t bankrupt when lending gets tight in a coming recession. Sure there will be unemployment increases and people might start redefining their retirement dreams once their portfolios get blown up but we’ll survive.[/quote]

Agree with this.

[moneymaker]

Inflation is definitely government caused. Historically it has been by printing too much paper. Now the government has taken a new course, instead of printing money they are borrowing from themselves, i.e. the credit card method. As everyone knows, with a credit card it can only end 1 of 2 ways. Either you end up paying more in the end (which will cause inflation) or you go bankrupt (deflation). Which do you think it will be for our government?

[scaredyclassic]

[quote=SD Realtor]Wrong scaredy, bananas, nuts, oatmeal and veggies are all approximately 20% more then 5 years ago.

Now the herring may not be![/quote]

berries seem to be often on sale so cheap.

oatmeal not sure but it’s increasing off a l low price.

Thank you for this rain

[livinincali]

[quote=moneymaker]Inflation is definitely government caused. Historically it has been by printing too much paper. Now the government has taken a new course, instead of printing money they are borrowing from themselves, i.e. the credit card method. As everyone knows, with a credit card it can only end 1 of 2 ways. Either you end up paying more in the end (which will cause inflation) or you go bankrupt (deflation). Which do you think it will be for our government?[/quote]

Doesn’t matter if the government borrows or prints. Whether you use your credit card to buy something or cash it spends the same and causes the same demand. Now if you use credit you pulled forward that demand and will pay a price something in the future if you intend to pay the debt off but our government doesn’t intend to pay the debt off because they can’t. Increasing the demand side of the equation while waiting for the supply side of the equation to catch up is always going to cause an initial inflationary effect.

Bottom line whether the government prints and spends or borrows and spends it causes the same initial inflationary effect. Now if the government does pay that debt back or defaults it will cause an deflationary effect but it they just print and pay off the debt it won’t. If they do print and pay off debt it could cause a hyper inflationary event. I.e. a loss a faith in the currency, but it shouldn’t create a major inflationary event since the money has already been spent as credit.

My expectation it it’s likely we’ll see see deflationary pressures for a long time (a la Japan) and/or a shorter deflationary depression that might result in a hyper inflationary event. Depends on what the government tries to do to prevent the deflationary cycle from playing out.

[The-Shoveler]

The Gov cannot afford Deflation.
Hyper Inflation is not desirable either to the Gov.

I guess there is always bitCoin

nuff said

The most desirable outcome from the Gov’s perspective is a rise of the bottom earners income which would promote stability.
Call it redistribution call it whatever you want, instability is not a desirable outcome however.

[FlyerInHi]

[quote=The-Shoveler]

The most desirable outcome from the Gov’s perspective is a rise of the bottom earners income which would promote stability.
Call it redistribution call it whatever you want, instability is not a desirable outcome however.[/quote]

Good for demand, good for sales for producers. Good for stability.

Why is that redistribution? When Ford paid his workers enough to buy his cars he created new demand and new wealth for everyone.

[The-Shoveler]

Like I said call it what you want, it is long over due.

[CA renter]

Yes, it is.

[sdduuuude]

SDR has been saying for years that his food and energy bills are going up. My energy/water bills have been about the same for about 5 years, comparing the same month across years.

http://ycharts.com/indicators/food_index_world_bank

http://forecast-chart.com/cpi-food-prices.html

http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=3y

[moneymaker]

Helix water district charges $42.93 just to have access to water, that is before they even start charging for the first gallon. Granted that is every 2 months and is not a lot of money to me, but this may be a lot of money to someone on a fixed income. It accounts for more than half my bill, so I have cut back on water use and now have rain barrels for watering the fruit trees.

[CA renter]

[quote=sdduuuude]SDR has been saying for years that his food and energy bills are going up. My energy/water bills have been about the same for about 5 years, comparing the same month across years.

http://ycharts.com/indicators/food_index_world_bank

http://forecast-chart.com/cpi-food-prices.html

http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=3y%5B/quote%5D

While I don’t have grocery receipts saved up over the last 5 years, it certainly is costing us more today than it did 5 years ago.

But I do have water bills from the past few years. Our rate in in 2008 was as follows:

0-6 units: $1.45
7-43 units: $2.23
Over 43 units: $2.60

From our last bill in 2014:

0-6 units: $2.26
7-43 units: $3.61
Over 43 units: $4.62

And they sent a notice in our last bill that it will be going up another 3%+ over the next year.

————

For SDG&E:

In 2008:

Gas:
-Baseline (45 therms): $1.27253
-Non-baseline (over 45): $1.51482

Gas Energy Charge $0 8/29 days
$0 21/29 days

Electric:
-Baseline allow (313 kWh) $.06656
-101%-130% of BL $.08673
-131-200% of BL $.12577
-Over 200% of BL $.13459

-DWR Bond Charge $.00477

-Electric Energy Charge: $.05734 (times total kWh used)

In 2014:

Gas Service:

-Baseline (48 therms) $.72514
-Non-baseline $.88550

Gas Energy Charge $.47747 19/31 days
$.51634 12/31 days

Electric Service:

21/31 days 10/31
-Baseline allow (313 kWh) $.08109 $.08552
-100-130% of BL $.10422 $.10934
-131-200% of BL $.27069 $.26120
-Over 200% of BL $.29069 $.28120

Winter Electricity Generation $.06483 (x total kWh)

DWR Bond Charge: $.00513

It’s not formatting properly, but the electric rates have gone up quite a bit, while the gas rates look as though they’ve decreased. They’ve changed the way the bills are displayed, so maybe I’m missing something(?), so if anyone else has bills to compare, that would be great.

In the meantime, income is down — both earned income and investment income (mostly because of the Fed’s interest rate policies).

[scaredyclassic]

maybe energy increases are good. we’ll use less…

im going to be eating cheaper food.

i’m going to severely limit the variety to get into routine and keep costs down.

1. oats/nuts/honey.
2. garden of life plant protein with water.
3. salad. nuts. piece of bread. maybe some fish.

i think through maor food quantity reduction and limiting choice, i can get costs down to five or six bucks a day.

sweaters cancel out heat.

no a/c.

water, i shower at the gym.

it’s that damn pool thats killing me.

[Author]

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