DEFLATION: Comin-in strong

[biglentil]

The same ones that told us that inflation is transitory are the same ones telling us inflation has peaked. Never take advice from the serially wrong, unless to do the opposite. Inflation is the expansion of the money supply a rising CPI the symptom. The printing presses are running faster than interest rates, there is continually more dollars chasing fewer goods. Even in a stable environment the dollar has continually lost purchasing power, the world is destabilized more than ever, M2 growth the fastest in modern history and somehow the dollar is going to regain purchasing power. Give me a break.

[Guest]

GOUGING might be a mild term my daughter's Toronto apartment 10 months ago was $1550 /month when she moved now when she checked this month same place is $2200. $1550 at % 8 inflation =1674 not 2200. This is what a lot of folks are dealing with these days in the higher population areas. The level of hurt has a long way to go yet I'm afraid.

unfortunately this is what toronto voted for

[blackpowder]

One little exercise for us all to consider. Cap your wage transfer from your corporate to your personal account at $1000/week.
A sobering reality for over half our population.

[errolanderson]

The same ones that told us that inflation is transitory are the same ones telling us inflation has peaked. Never take advice from the serially wrong, unless to do the opposite. Inflation is the expansion of the money supply a rising CPI the symptom. The printing presses are running faster than interest rates, there is continually more dollars chasing fewer goods. Even in a stable environment the dollar has continually lost purchasing power, the world is destabilized more than ever, M2 growth the fastest in modern history and somehow the dollar is going to regain purchasing power. Give me a break.

Call me weird, but inflation has both peaked and transitory.

Inflationists never mention the ‘D’ word . . . Debt. Printing buckles of money offers little protection to the intensity of deflation now hitting markets. Debt crisis amplified by insane rate hikes at the worst possible forcing asset prices to pennies-on-the-dollar.

Whats’s ahead is a serious changing of the guard to rejuvenate the economy. Inflation can no longer protect the indebted . . . .

[TOM4CWB]

The obvious solution is to change the way ‘ inflation’ is measured… which they are in the process of doing…

A new term has already been coined ‘Disinflationary’ the Emperor used this term last week…

I saw an interesting protection on gasoline prices…

Some folks say as more EV’s take the place of gasoline/ICE powered vehicles…. Gasoline will fall in price….

Not.

Oil refineries will reduce supply… prices will not fall… new refineries won’t or can’t be built by new industry participants… onerous environmental restrictions make new fossil fuel capabilities uneconomic….

Biofuel capacity is increasing because subsidies and ethanol is cheaper than fossil fuel… ESSO is spending $800M in Edmonton…. On biodiesel…refining… United Airlines is going to build ethanol biodiesel production facilities….

None of this is disinflationary… therefore since energy costs are unlikely to decrease….

Food production is being restricted…, nutrient restrictions, nitrogen restrictions… the cost of agricultural land… is only increasing….


Reports of up to $600/ac/yr US cash crop land rent…recently paid in 2023….

Equipment cost, wages, no disinflationary indications on the horizon… drought in the Midwest…


Cattle cycle short of breeding animals…



Well over 40% of meat consumption is beef… drought has reduced inventory considerably… while consumption is increasing…

Disinflationary indications are few and far between…

Putin is very likely to continue to squeeze the western world… inflation is not over.

Blessings
Cheers!

[biglentil]

There was a period in the 30's when the fed dried up credit that the dollar actually gained purchasing power, but since 1900 the dollar has lost 98% of its purchasing power. World wars are particularly high inflationary periods. When I say inflation I mean adding dollars to the money supply just like adding air to a balloon. The only deflationary thing Biden has done is shoot down a balloon.

[jazz]

Errol, disinflation can not take hold until the money supply is reduced. Do you see any govts doing that.

For every dollar the fed might tighten in the money supply, govts are adding 2 more.

Until a rekoning on our debt levels happens, nothing will change. Everyone is getting 2nd jobs to pay for inflation. US NFP were 4 times higher than estimates.

Look at this stunned idiot, now after Trudeau gave every dollar to pet causes including stupid Ukraine, the kitty is almost empty in Canada and no economic growth to pay for it. I told you all before, Canada is heading for a debt downgrade and 60ish cent loon. If you have anything you need to buy from the US better do it now.

GD canadians are a stupid bunch.

[TASFarms]

Errol, disinflation can not take hold until the money supply is reduced. Do you see any govts doing that.

For every dollar the fed might tighten in the money supply, govts are adding 2 more.

Until a rekoning on our debt levels happens, nothing will change. Everyone is getting 2nd jobs to pay for inflation. US NFP were 4 times higher than estimates.

Look at this stunned idiot, now after Trudeau gave every dollar to pet causes including stupid Ukraine, the kitty is almost empty in Canada and no economic growth to pay for it. I told you all before, Canada is heading for a debt downgrade and 60ish cent loon. If you have anything you need to buy from the US better do it now.

GD canadians are a stupid bunch.

[ATTACH]11939[/ATTACH]

What she is means “I don’t have money for provincial programs, I don’t care about Canadians, screw the poor and middle class. I want to spend as much tax payer money I can my hands on by throwing it out the window to my friends so they can launder it and in turn they can give some back.

[Old Cowzilla]

Selling that clean natural gas would have been a great cash cow plus put our $ par with U.S.A. Think of the buying power we would have buying high quality steel from Germany and Japan instead of lower quality steel from China. Wonder if so much damage has been done if we will able to recover even when change of government happens. Not a lot of love for Canada now on the world stage.

[jazz]

Before retard Trudeau came in, the sands had a plan to go to 8-10M bbls a day production by 2025. Had that happened, we would be making $500B a yr off oil.

But instead, according to Trudeau we are going to be a rocking economy by bringing in 500k new immigrants and getting them to work take out windows and drive for uber.

Canadas federal pmts on the debt is now $70B a year. Add in the provincial debts and this country is paying $200B in interest on the debt alone.

Absolute insanity.

[shtferbrains]

" A few years prior to 2017, it appeared that British Columbia would enter an LNG boom. Twenty-two LNG proposals aimed for the coast were to move fuel from the methane-rich Montney Basin in northeastern BC to Asia. Sightline reports that the provincial government fueled the LNG boom by granting permits, cheap power, and tax breaks. The provincial government promised it would deposit tax revenues from LNG projects in a “prosperity fund” that could reduce other taxes or eliminate debt."

Nothing happens in this country even when large multinational companies that are capable and experienced at making multi billion dollar projects happen.

But we are suppose to believe that we are going to transform the whole economy to net zero by 2050 with penny stock outfits like PMJT was pumping last week in Saskatoon?

How long till the world wakes up to this farce?

[blackpowder]

The major investors of the world have placed Canada in a certain category for two decades or more.
The majority of Canadians oblivious.
What happened to your neighbor's farm when it was given to the son who never worked for it?

[biglentil]

[rumrocks]

https://cms.zerohedge.com/s3/files/inline-images/2023-02-06_05-25-12.jpg?itok=zCG5gq_L

I would like to see Canada's numbers since this government started borrowing.

[bucket]

Where do they measure or benchmark deflation from?

Pre pandemic or after the increases.

A halfton or 3/4 ton was quite a bit cheaper than today. If it deflates 6 percent off todays price , it still way more expensive than pre-pandemic.

Bought a new halfton in 2016 for under 40k. To replace that halfton with the same options would be well into the 70s. Maybe more.

If it deflates enough to look at a new one , it is still too expensive for new fenders.