US Credit Rating Dropped. Again

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#4
Yeah and they've removed things such as FOOD from the CPI index. :roll: Check the cost of food over the last few years and you'll see a steady trending upwards.
 
#5
Yeah and they've removed things such as FOOD from the CPI index. :roll: Check the cost of food over the last few years and you'll see a steady trending upwards.
Being very subtly done with packaging proportionately downsized to include less product and at higher cost. It is predictable and telling to see our Masters (current and former) "cook the books" on these various indices to make lemonade out of lemons. The best example is the so-called unemployment numbers put out by the Bureau of Labor Statistics so that the rate is determined only using those actively seeking work and drops off those who have given up looking but are still unemployed. If they were included in an honest report, the rate would approach 20% in many areas of the US.
 
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Yeah and they've removed things such as FOOD from the CPI index. :roll: Check the cost of food over the last few years and you'll see a steady trending upwards.
Again, false. In 2009 the BLS separated the CPI into three groups by giving separate figures for food and energy. The cost of food has risen 2.0% since end of Aug 2011. The core CPI is 1.9%.

BFD.

If the price of food rises markedly in the coming months, it's going to be because of the drought, not a drop in the credit rating and not because of QE3.

The immediate proof of any negative effect of the credit downgrade will be an upturn in interest rates on government borrowing.
 
#7
That's funny, I saw food prices rise both in supermarkets and at my office's vending machines, and at my local bar, SEVERAL times in the last 4 years, and apologetic notes along with the price increases noting increased prices of gasoline and electricity.

I guess it was all part of a Republican conspiracy to make Obama's energy policy look like the utter shit it is. Including by my bar owners, a union dues-paying, die-hard Democrat, committed lesbian couple. :roll:
 
#8
That's funny, I saw food prices rise both in supermarkets and at my office's vending machines, and at my local bar, SEVERAL times in the last 4 years, and apologetic notes along with the price increases noting increased prices of gasoline and electricity.

I guess it was all part of a Republican conspiracy to make Obama's energy policy look like the utter shit it is. Including by my bar owners, a union dues-paying, die-hard Democrat, committed lesbian couple. :roll:
Dara O'Briain: Science doesn't know everything - YouTube
 
#9
Gee that's funny, the LA Times in December, 2011 was projecting CONTINUED increase in food prices, long before we knew about any drought this year:

Food prices will continue to rise in 2012, says USDA - latimes.com

Whaddya know. :roll:

Get ready for more high food prices going into 2012 –- the USDA is projecting that next year will bring an overall spike of 2.5% to 3.5%.

That’s less than the 3.25% to 3.75% boost that the Department of Agriculture is projecting for 2011. High commodity and energy prices along with soaring demand for food pushed up the value of items including ice cream, lettuce and bread.

Grocery store shoppers this year watched prices rise as much as 4.75% while diners in restaurants saw menu prices go up as much as 2.5%, with a surge near the end of the year.

As of last month, beef prices were up 9.8% compared with the same month last year. Pork prices were up 6.9% and poultry was 3% higher. With fewer fertile hens around, egg prices were 10.2% higher; dairy was up 8.7%.
 
#10
This jumping around insisting there has been no dramatic rise in food prices puts me in mind of an old Soviet era joke: Lenin, Stalin and Brezhnev are all on a train, when the train suddenly comes to a halt. The 3 leaders debate how to get the train moving again.

Lenin: We must appeal to the socialist revolutionary fervor of the workers to get this great engine of progess functioning once more!

Stalin: We must execute the counter-revolutionary reactionaries who have sabotaged this great work of the people.

Brezhnev: Comrades, let's close the blinds, put our hands over our eyes, and pretend we're moving.
 
#11
Bankers heading off against the US economy. If we listen to these guys we are all fucked.
 
#12
October 2011, again that haven of Obama worship, the LA Times:

Based on data out Wednesday from the Bureau of Labor Statistics, the cost of food is already up 7.8% this year. The 0.6% jump from August to September was the fourth consecutive monthly increase in prices and the 13th in 15 months.

By the end of the year, prices could make their strongest gains since 1980, when costs soared 8.1%, Grindy wrote. If the trend holds, wholesale food prices will have soared 26% in five years.
Food prices set to rise most in 30 years, economist says - latimes.com


Food cost increases? What food cost increases, Comrade?
 
#13
Gee that's funny, the LA Times in December, 2011 was projecting CONTINUED increase in food prices, long before we knew about any drought this year:

Food prices will continue to rise in 2012, says USDA - latimes.com

Whaddya know. :roll:
Go and do two things for me.

First, go and compare the 4.75% figure the article mentioned with the core CPI, which at the time was 4%.
Secondly, go away and learn something about globalisation. Increased demand in the global marketplace easily accounts for the rise in prices, rather than any downgrade of the US credit rating.

Incidentally, food and energy were removed from the core CPI since it was decided- rather sensibly- that the markets for both were too volatile to guide cogent monetary policy.
 
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And it makes the President's energy policy look like shit.

Energy policy is driving food price. We've got cattle farmers feeding their livestock candy because corn has become too expensive due to the COMBINED effects of the drought, and 40% of our corn yield going into fcuking ethanol instead of being used to FEED PEOPLE.
 
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The increase for food has been due in part to drought conditions in the midwest of the US. Part has also been due to increased fuel costs for all the machinery needed to operate a farm. However a significant cost has been due to the large portion of the corn (maize) crop that has been diverted from use a livestock feed to the production of ethanol due to the mandate to include ethanol in motor fuel. The mandate came in during the Bush43 years when problems were discovered with an additive mandated during the Clinton years.

An article discussing this in the Washington Post is at:
Study: U.S. could put a big dent in food prices by relaxing ethanol rules

Fuel costs have gone up sharply in the past 3 years. One food sharply affected is seafood. I know lobster prices have gone down to the economy and the dock price is about half of what it was a couple of years ago. The lobstermen have had hard times due the increased costs of marine diesel. I know some who have laid of their sternman and are fishing less pots to cut costs. Others have tied up their boats and taken shore jobs.
 
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YOU ARE USING DATA WHICH IS A YEAR OLD. INFLATION WAS HIGHER BETWEEN 2010-2011 and the current period 2011-2012.
You said that "if anything, food prices would go up this year due to the drought". What drought was there in 2011, when you denied any great increase in food prices?
 
#18
The increase for food has been due in part to drought conditions in the midwest of the US. Part has also been due to increased fuel costs for all the machinery needed to operate a farm. However a significant cost has been due to the large portion of the corn (maize) crop that has been diverted from use a livestock feed to the production of ethanol due to the mandate to include ethanol in motor fuel. The mandate came in during the Bush43 years when problems were discovered with an additive mandated during the Clinton years.

An article discussing this in the Washington Post is at:
Study: U.S. could put a big dent in food prices by relaxing ethanol rules

Fuel costs have gone up sharply in the past 3 years. One food sharply affected is seafood. I know lobster prices have gone down to the economy and the dock price is about half of what it was a couple of years ago. The lobstermen have had hard times due the increased costs of marine diesel. I know some who have laid of their sternman and are fishing less pots to cut costs. Others have tied up their boats and taken shore jobs.
An article I read a few months back said the lobstermen were also having bumper harvests, and in some supermarkets lobster meat was cheaper than deli lunchmeat.
 
#19
You said that "if anything, food prices would go up this year due to the drought". What drought was there in 2011, when you denied any great increase in food prices?
Do you not remember droughts in Russia, Latin America, China and Australia last year? Flooding during the planting season in Canada?

And I didn't deny there wasn't a spike in food prices.
 
#20
An article I read a few months back said the lobstermen were also having bumper harvests, and in some supermarkets lobster meat was cheaper than deli lunchmeat.
bumper early in the season as there were weather conditions that meant the soft shell lobsters(i..e. recently molted) arrived early and softshells get low prices, like culls (i.e. lobsters missing claws). However chix and jumbos are also down in price. Lots of guys are hauling less pots. You drive around my town and see stacks of pots in the back yards like you would see in midwinter when fewer fish and those who do fish close to port. Due to fuel prices some are taking turns fishing each others pots and splitting the catch or sometimes acting as each others sternman. Bait is also up in price, due in part ot NMFS bycatch rules.
The man who picks up my trash is 80 and helps on his sons' boats to help keep them going. He says the only thing some have going for bluefin tuna which is a bit of a crapshoot. Lobstermen will troll on the way back from their fixed gear hoping for a bluefin. Catching a bluefin is like hitting the lotto number but they can bring tens of thousands of dollars. There is a businessman in this area who keeps a marine radio in his truck and coffinlike cases full of ice. Radio you have a blefin and he meets the boat at the dock, buys the fish and off to the airport to put it on the next flight to Tokyo where people will pay $50-100 for a piece of sushi/sashimi with bluefin. They sell for tens of thousands here but can bring hundreds of thousands in Tokyo. Not all many are caught here though.
 

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