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Poor versus Rich



October 16, 2008 – Comments (8)

Lets see, $2.25 trillion for financial crisis bailout...

Here's a story about $22 billion pledged to help to deal with the world food crisis due to the commodity price.  The rise in the price of things like grain doubled the cost of living for people that were already going hungry.

It seems only 10% of the pledges have shown up, or $2.2 billion...

Good going hedge funds, financial genocide of the poor...

8 Comments – Post Your Own

#1) On October 16, 2008 at 7:57 PM, DemonDoug (30.72) wrote:

Aren't grain prices going down with the rest of the world's commodities?

Still no deflation: Disinflation then lots of inflation

As we explained years ago, the Fed has a bottomless bag of tricks to use to fight deflation. When deflation inevitably threatens, the Fed planned to continuously change the rules of the game to fight it, and so they have.

Btw we are going to have some of the most massive inflation in the history of the US outside of the Confederate dollar starting some time in the next 3 years:

Look at that huge jump in M3 over the past few weeks!

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#2) On October 16, 2008 at 9:05 PM, dwot (29.43) wrote:

Yes they are Doug, but they still haven't gone down enough and I suspect when the prices were higher it completely stripped their resources.

So Doug, just what kind of wager do you want on this inflation versus deflation debate?  And what kind of timeline?

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#3) On October 16, 2008 at 9:35 PM, outoffocus (24.11) wrote:

I think the fed wants massive inflation by any means necessary. What to they care? They will be rich regardless. It doesnt matter that salaries arent rising to meet this inflation. As long as the fed continues to print money, we are going to have stagflation. You cant squeeze blood from a rock.  But the Fed is sure going to try.

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#4) On October 16, 2008 at 10:59 PM, dwot (29.43) wrote:

Here's a post of companies that will feel the Lehman spillover

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#5) On October 17, 2008 at 2:27 AM, DemonDoug (30.72) wrote:

It has to be a long timeline, because disinflation can occur for over a year or more.  Like 3-5 years.

If there is one bubble happening right now, it is the dollar and treasury bubble.  Dollars and t-bills are WAY overvalued right now.  Can you name an asset class that is more overinflated in terms of value more than dollars?

As far as a wager deb... I'll leave the terms up to you.

btw, the prices in my vending machine at work went up another 3 cents.  While milk is down a tad, eggs, bread, yogurt, and everything else i buy at a grocery store is either the same or higher than it was 6 months ago.

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#6) On October 17, 2008 at 2:27 AM, DemonDoug (30.72) wrote:

whoops typo i meant 5 cents.  no pennies in vending machines for decades in this country.

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#7) On October 17, 2008 at 9:02 AM, Gemini846 (34.78) wrote:

You know more vending machines are taking credit cards. They add in the fee so it pushes up the prices for everyone. 2 months ago they wen't up $0.25.

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#8) On October 17, 2008 at 9:28 AM, leohaas (29.42) wrote:

We are a nation of debtors. Inflation is our way out!

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