aedens wrote:I think John is right on 3000 dow but on a nominal dollars to a ~15000 dow print. Pass through costs are real for inflation targeting. More are being left behind... "wasting" jlak seen it as we do I feel also.
http://generationaldynamics.com/forum/v ... 1260#p2958
Higgenbotham wrote:If he jacks prices up over what the consumer can afford, the economy will contract anyway, maybe not so much in price but in volume of movement of goods, which in my opinion is worse than letting prices fall.
http://www.guardian.co.uk/society/2012/ ... tion-fallsThe government's annual Family Food survey, which provides the most detailed annual snapshot of food and drink spending and consumption, found that weekly spending per person on all household food in 2011 was £27.99, an increase of 1.5% on the previous year. But because of price rises, that bought less food - 4.2% less in 2011 than in 2007.
The survey also showed how households saved 6.8% by "trading down" to cheaper – and in many cases, less healthy – products, hitting consumption of fresh fruit and vegetables.
These are aggregate numbers and in this instance aggregate numbers are what matter.
I use weasel words here like "may" and "perhaps" quite a bit, but not in this instance. Britain is in a more advanced state of decay than the US, but not by much, and the US could quickly overtake it. Bernanke is pushing price at the expense of future throughput, and in the final analysis economic systems are physical systems, not systems of money flow. In the extreme already created, there will be minimal throughput, minimal jobs, starving people, reduced population, bankrupt corporations, and little to buy unless it is produced locally. That's not a recipe for the resurrection of the current economy - ever. The Dow will go to its current intrinsic value, which is zero. When this forecast turns out to be correct, I won't have any bragging rights because nobody will have time to read this forum. Those who are left will be spending all their time trying to survive. Of this I am 100% certain because the die is already cast and I'll put a time frame on that - no more than 5 years.