I’ll say this again as a 40 year futures trader. These commodity prices are exploding out of control. This WILL cause run away inflation for consumers. This isn’t a scare tactic, but a fact! Pull up a charts on Oil, gas, grains, lumber, OJ, etc….😳
— BAW690 (@baw690) February 2, 2022
Janet Yellen defended the size of the stimulus package that many blame for fueling inflation, though she conceded that describing rising prices as “transitory” was a mistake.
— unusual_whales (@unusual_whales) February 3, 2022
Food Prices Climbing Closer Toward Record High…
The United Nations’ index of prices rose 1.1% in January, pushed up by more expensive vegetable oils and dairy. The gauge is edging closer to 2011’s all-time high, and unfavorable weather for crops and the fallout from an energy crisis threaten to keep prices high going forward.
Inflation has been running rampant across the globe, and the latest leg higher in the UN’s food index could further stretch household budgets. The commodities tracked by the gauge are used in most grocery store products or fed to animals from which those items are produced. That’s particularly bad news for the poorest consumers and nations with the least disposable income.
The poorest “segments in the population will feel the pinch the most,” Josef Schmidhuber, deputy director for markets and trade at the UN’s Food and Agriculture Organization, said by phone. “High energy costs and high food costs and high necessities — they account for a large part of their overall expenditures.”
Inflation is the worst in 40 years.The price of cars is up 37%. Gas is up 49%.During the last few years, as politicians spent ever more money, experts told us not to worry.Jerome Powell, chair of the Federal Reserve, said inflation would be “transitory.“Treasury Secretary Janet Yellen said, “I don’t anticipate inflation is going to be a problem.“Now she says, “I’m ready to retire the word transitory.“What went wrong?“Big corporations have taken advantage,” says Rep. Ted Lieu.Sen. Elizabeth Warren tweeted: “greedy corporations are charging Americans extra.” It’s “price gouging.“This is nonsense.“Greed is constant,” says economist David Henderson in my new video. “If it’s greed, how do we explain prices falling?” When oil prices fall, is it because “oil companies just suddenly decide, ‘I’m gonna be less greedy’?“Prices change because of supply and demand.Inflation results “from too much money chasing too few goods,” explains Henderson. “If government’s spending more money, that’s more money chasing too few goods.“L …