Tuesday, May 08, 2007

Cost Of Living

Notice that the headlines are coming more quickly now?

This story isn't news to anyone who drives a car.

According to the USDA, milk prices in New York rose 20 percent last week.

Live in New York City or Westchester County? You'll want to know about this.

This isn't exactly news (and it's more than a bit simplistic) but the presses at the Federal Reserve are running full bore right now. Every hint of weakness in the economy or financial markets is being monetized away, partially because we need to pay for Iraq. This drives up the price of everything, including stocks. Remember, a nation's stock market almost always rises when its central bank inflates; the performance of the U.S. market in the 1970's was the exception and not the rule. Zimbabwe has the world's highest rate of inflation. Wondering how its stock market is doing? Take a look. For those interested, here's a longer post I wrote on this dynamic. Note: betting against this can be even more dangerous than not understanding it.

Of course, the ultimate tells are here and here.

20 Comments:

Blogger Grodge said...

Great to re-read the Mark Gleich Mark post from last November.

One other factor to add to the mix: the absence of investment opportunities besides US dollar-denominated stocks.

If one has a 401(k) through, say, Fidelity or Vanguard, 90% of the investment options are in mutual funds holding predominantly US company stocks. Even the "gold funds" are stock funds that buy shares in US dollars.

For the average investor, where are the "hard assets" that are referenced in the Fergusson's redux of 1920's Germany? This seems to "feed the beast" as hourly workers keep shoveling money into their US stock index funds.

Stocks denominated in foreign currencies? What asset class is immune to the liquidity-induced inflation?

5/08/2007 6:29 AM  
Anonymous Anonymous said...

"According to the USDA, milk prices in New York rose 20 percent last week."

Someone on Giulianni's staff better let him know...in case the question pops up again.

5/08/2007 8:25 AM  
Anonymous goldhorder said...

ummmm...gold. Not gold stock...gold. Silver too....Canadian resource stocks as advised by Doug Casey...not a bad option either. I've made an absolute killing the last two years.

5/08/2007 3:05 PM  
Blogger Grodge said...

Goldhorder,

I agree, and I do have some gold (GLD) in my taxable brokerage account.

The point I'm making is that in a 401(k) account through an employer, which for most Americans is the only retirement fund they have outside of the Treasuries in Social Security, the options are very limited.

Fidelity offers a Select Gold Fund, but it is made up of gold mining stocks. Likewise, the Natural Resource Fund is not "hard asset", but rather a stock fund with a lot of US energy companies, among other things.

This merely leads to every wage-earner in the country blindly dumping a portion of their savings into some stock fund, and most of the fund options are US stock funds that track some major index, such as SPX, Russell 2000 or NASDAQ.

Result: adding more froth to the bubbly markets.

5/08/2007 8:42 PM  
Anonymous Anonymous said...

As the international value of the US dollar continues to decline it artificially increases the value of the stock market by inflating the value of foreign assets held by American companies. When the American dollar begins to recover on international markets the value of the American will make an unexpected, by most people, decline.
If we godless foreign heathens were smart we would be out madly purchasing American stocks just the strengthining of the US dollar could increase their value by 30 or 40 %

5/12/2007 7:56 AM  
Anonymous Anonymous said...

http://www.foreignaffairs.org/20070501faessay86308-p0/benn-steil/the-end-of-national-currency.html

5/16/2007 10:23 PM  
Anonymous Anonymous said...

Hey, while searching for widgets for my blog, I stumbled upon www.widgetmate.com and wow! I found what I wanted. A cool news widget. My blog is now showing latest news with title, description and images. Took just few minutes to add. Awesome!

6/08/2007 12:32 AM  
Anonymous BuyLevitra said...

Thanks for article!

8/17/2007 6:45 PM  
Anonymous Phentermine said...

Thanks for interesting article.

8/18/2007 4:37 AM  
Anonymous Viagra said...

Glad to read articles like this. Thanks to author!

8/28/2007 12:27 PM  
Anonymous Anonimous said...

Excellent website. Good work. Very useful. I will bookmark!

9/09/2007 5:41 PM  
Anonymous viagra said...

Disaster is likely to wreak havoc in the life of an individual as soon as he becomes victim to erectile dysfunction and the most significant dreadful consequence of erectile dysfunction is that the afflicted man becomes incapable of facilitating erections required for sexual intercourse. The sexual vacuum resulted from erectile dysfunction prompts the sufferer to opt for anti-impotency pills, most especially the viagra medication that was approved by FDA (Food and Drugs Administration) as a clinically effective drug to cure erectile dysfunction in men. Viagra is meant to be administered by patients only after availing of viagra prescription from the doctor. The prescription for Viagra provided by the doctor spells out that the patient suffering from erectile dysfunction seriously need Viagra to treat his disorder and further authorizes the patient to avail of Viagra from the pharmacist.

9/25/2007 2:58 AM  
Anonymous Anonymous said...

Online weight loss medications and programs are becoming very popular throughout the world with dietitians. However, not all programs of weight loss are created equal and some are even unnecessary.
Acomplia weight loss drug is an anorexic against obesity drugs. It is a cannabinoid receptor antagonist CB1. Acomplia Rimonabant has been found to stop the food enough to help people lose weight, and could also help reduce the urge other unhealthy as smoking.
Florinef weight loss drug is a corticosteroid used to help your body maintain the proper balance of water and minerals. Florinef pills can also be used to treat other conditions as determined by your doctor.
Hoodia weight loss medication is pure weight loss supplement. Do not be fooled by counterfeit products. Hoodia Gordonii More Hoodia comes directly from South Africa. Not Mexico, China or other so-called Hoodia exporting countries. More sales Hoodia Gordonii directly help the South African Bushmen tribes.
Meridia weight loss drug (sibutramine) is a weight loss aid, prescribed together with a larger plan of diet and exercise for people who need to lose 30 pounds or more, or for overweight people with additional factors risk (high cholesterol, hypertension).
Proactol weight loss medication is a daily supplement clinically proven that easily help to reduce excess body weight and become attractive, slender person you have always wanted to be. Proactol will absorb up to 28% of fat in everything we eat.
Regenon weight loss medication is used in the short term treatment of obesity. Reduce the effect their appetite tends to decrease after a couple of weeks. Because of this, these drugs are useful only during the first weeks of a program for weight loss. Regenon can help you lose weight while you are learning new ways to eat and exercise. Changes in eating habits and activity level should be developed and continued long-term in order to continue to lose weight and maintain the weight lost from returning.
Tenuate weight loss medication decreases appetite. It is used on a short-term (a few weeks), in combination with diet, to help you lose weight. This drug is sometimes prescribed for other uses; Offices You can address your doctor or pharmacist for more information.
Xenical Weight Loss medication a gastrointestinal lipase inhibitor used in the management of obesity in adult and adolescent patients age 12 and older. This medicine may be used during the weight loss phase or following weight loss to assist in weight management. This medicine works by inhibiting the digestion of fats from the diet and should be used with a reduced-calorie diet.

10/27/2007 6:36 AM  
Anonymous GeoArticleDude said...

From a fat dude, thankyou to the above commenter!
Canadian article directory

7/26/2009 6:35 AM  
Anonymous Anonymous said...

I have been looking for a good book to help me with my diet. In the end I googled it and found this site http://www.hungryforweightloss.com.

They are giving away a free ebook called "365 tips for healthy living". I didn't expect it to be any good because it's free but it's actually brilliant so I thought i'd share it here :)

2/09/2010 8:02 AM  
Anonymous Anonymous said...

Earning on-line is not a troublesome task, at the identical time it's not simple as well. There are several methods to earn money online, you'll be able to create different business structures. You'll take affiliate promoting, where you'll be able to select a product, software or a service and persuade you to buy and in come you will get a commission out for selling. The nice advantage of affiliate selling is, you don’t want to speak to folks and sell the merchandise, everything can be done online, at the same time, you need some skills, to try and do it. You would like to create channels for promoting like websites, newsletters, landing page creation and PPC advertisements.

You can conjointly produce a VRE, (Virtual Real Estate) where in you create websites, develop and monetize it using numerous means like CPM or CPC ads, creating and selling your own product. You can develop niche sites and setup ecommerce stores.

There are more methods furthermore, except for beginners, and those that are new to online business the most effective way to make an identical revenue stream is thru actions like filling up surveys, get paid to try to to easy actions like signing up with new sites and getting paid to browse emails. The level two for beginners is mystery shopping and related income streams. You'll get all the free resources to form a career at [url=http://earn-online-money.com/tools-and-techniques/home-business-blueprint-1-0-earn-online-moneys-free-new-launch/]Earn-Online-Money.Com[/url]

2/16/2010 12:59 AM  
Anonymous Anonymous said...

Йа йэбу... Вас тута сборищэ Пейдоразусов!
Писсетец! Фсех бы атписдилл!
Пшлинах!
Сасите!

11/06/2010 6:45 AM  
Anonymous Anonymous said...

Идите на хуй!
111

11/06/2010 7:17 AM  
Anonymous viagra online said...

I have 22 years old right now and the cost of life is so so hard that I don't to get married or have children, thinking no of the responsability, thinking about, would be possible to me to give them all they need ? can I give them a good life ? that's what i think.
Thanks

12/23/2010 8:48 AM  
Anonymous xlpharmacy reviews said...

I don't like when everything is partially controlled to look like nothing is wrong and we are happy that they are trying to live a quite life.

11/21/2011 1:33 PM  

Post a Comment

<< Home