Tag Archives: interflation

MayDay 2011: Price & Purchasing Program

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Canadians are getting ripped off.

We are paying more at the gas pump, despite being one of the world’s largest (albeit dirtiest) sources of oil.

We consistently pay anywhere from 20-50% more on basic items like cars, books, food products and other goods.  The continuous – and lame – excuse from suppliers is that the cost of doing business in Canada is rising.  Labour, regulations and other ‘impediments’ are positioned as the point of blame for these rising prices.

However, think of these excuses in context of current events:

  • Unions are being broken.  They are not increasing in strength.
  • Although minimum wages are increasing, they are not increasing 20-30% every year.
  • When was the last time you saw an overzealous government implement a broad change in tighter regulations anywhere in Canada?

Despite the fact that our dollar continues to rise in value, we are paying more for the goods and services we rely on each day.

As a reminder, for those of you who aren’t familiar with economic terms, when your currency rises in value, imported goods should be cheaper in an inverse manner.  That is, if your currency rises 20% compared to all other currencies, the cost of goods imported into your country should drop by roughly 20% to represent this increase in buying power.

As it stands, Canadians are getting screwed over twice because they only

The progressive party (as opposed to the regressive Conservatives) that proposes an investigation into the skyrocketing prices that Canadians are paying will win this election.

MayDay 2011: Super Price Me

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Canadian inflation stats came out today and it’s not pretty for Canadians.

A jump of 3.3% in prices means that we are effectively being taxes by bad economic policy.

As the Conservatives continue to lie about their economic track record, it’s important that Canadians remember it’s time we started to gain from the increase in our Canadian dollar and started paying LESS instead of MORE when our exchange rates changes.

Not enough for you?  The resulting jump in prices will likely lead to an increase in interest rates, another f-u to Canadians.

Canadian & International Price Issues: The US Dollar Did It

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Analysts everywhere are reminding us that the US dollar is collapsing, both because of exploding debt in the US, but also because of substantial instability in this country.  Political uprisings in Libya have less to do with instability than rallies like this.

I’ve been warning about the prospect of a collapse in the US dollar for some time and have even invented my own term for the impact that this will have on anyone living outside the US:  interflation.  The US will continue to export its inflation to other countries, punishing us in prices for their inability to control their spending.  It’s the internationalization of inflation that none of us can afford.

The ponzi scheme has to stop.  Gerald Calente has described that food and oil prices will continue to skyrocket in the US and that resulting increases in interest rates will crush any opportunity for growth in the American economy.

This situation is what Jeremy Rifkin calls ‘Economic Endgame’, where the US economy (and the global economy by dependency) ping-pongs between states of uncontrollable and unpredictable deflation and growth hitting a wall because any growth translates to rapid expansion in oil prices (which then results in rapid price increases in most other commodities).

Canada, the EU and other countries around the world can avoid this instability by uncoupling themselves and their economies from the influence of pricing everything in US dollars.  Once they do, appreciation will translate to real price decreases in their own economies, fueling real and natural rates of growth and consumption without inflation.  These growth rates will then translate to real demand for US goods and services, presuming they are willing to make anything any more and not survive on the ‘hand in someone else’s pocket’ economy.

Once again, any politician in Canada would be wise to recommend and run on a platform of price equality and stabilization for Canadians, but that’s very unlikely to happen with our current slate of Harper clones.

Another solution for the US will be to eliminate their outrageous level of defense spending, but right now, it’s the only thing keeping this economy alive.

Prices: Why Canadians Should Be Outraged!

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I’ve been hearing a lot of talking heads lately yammering on about how we’re facing increases in prices for food basics like bread, meat, produce and other imports from around the globe.

Unfortunately, they’re all morons and they don’t know what they’re talking about.

Canada is a land of abundant resources and a dollar that’s appreciating because of a number of factors, the main one being the decline in the value of the US dollar.  Other factors include demand for our oil, wheat, soy, corn and other consumable products that are increasing in cost to the rest of the world.

As our dollar appreciates, we should be able to buy MORE goods in exchange for fewer dollars.  We should be selling our goods within Canada at Canadian prices, not international prices.

However, because we’ve surrendered our food security and general sovereignty to multinational corporations, most of which price their goods in US funds and then add a 20-50% markup for Canadians, regardless of the value of our currency, we are facing severe price increases.

If you don’t believe me, here’s an example:  Margaret Atwood publishes a book and the US price is $10.95.  The Canadian price is probably something like $14.95.  Canadian paper and Canadian author, but Canadian buyers get hosed.

This is insane.  If Canadians were faced with a 20 to 50% increase in tax rates, there would be rioting in the streets.

What’s also going to happen is that this will spike inflation, prompting our sophisticated economists with the Bank of Canada to hike interest rates, driving up the costs for all of us to borrow money.  Just when we need it most.

However, when the talking heads with mainstream media tell us that these things are unavoidable (eg. Libyan uprisings mean we pay more for food), we owe it to ourselves to call BULLSHIT.

What astounds me is that we live in a land that is filled with political opportunists, but NO SINGLE PARTY has jumped on the opportunity to demand price parity or price improvements for Canadians.

Until then, do yourself a favour and avoid buying from the companies that are behind these lies.  Loblaws and Weston (which is owned by Loblaws) seem to be the central forces behind this big push to increase prices.

How Gluttonous Boomers are Going to Screw Us All

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In the US, walking away from a mortgage or excessive loan is becoming a common occurance.

This piece on how Boomers walking away from their responsibilities tries to go so far as to make the idea seem cool.

It’s not.

Gecko-like Greed has driven the US economy into the basement and the housing crisis is just starting to happen there.  In time, the US will likely depreciate its currency in order to fuel a modest recovery, only to discover that when it does this, it also fuels the prices of almost all commodities in the world, as they are priced in US funds.

Even though the couple depicted in the article did everything they could to be good citizens, they were ultimately ‘forced’ into their own version of ‘vigilante finances’.

The result?

When the backbone of a country starts thinking that laws and rules are not worth following, it’s just a hop, skip and a jump to anarchy.

TV has given us the illusion that anarchy is people rioting in the streets, smashing car windows and looting every store in sight. But there’s also the polite, quiet, far deadlier anarchy of the core citizenry—the upright citizenry—throwing in the towel and deciding it’s just not worth it anymore.
If a big enough proportion of the populace—not even a majority, just a largish chunk—decides that it’s just not worth following the rules anymore, then that society’s days are numbered: Not even a police-state with an armed Marine at every corner with Shoot-to-Kill orders can stop such middle-class anarchy.
Brian and Ilsa are such anarchists—grey-haired, well-dressed, golf-loving, well-to-do, exceedingly polite anarchists: But anarchists nevertheless. They are not important, or powerful, or influential: They are average—that’s why they’re so deadly: Their numbers are millions. And they are slowly, painfully coming to the conclusion that it’s just not worth it anymore.

Once enough of these J. Crew Anarchists decide they no longer give a fuck, it’s over for America—because they are America.

I’m of the opinion that the rest of the world should be munching on the sweaters of this J Crew crowd that has had everything for the last 6 decades simply because they represent a big chunk of voters.

But that doesn’t matter because I’m not one of them.  I’ll be paying for their follies for the rest of my life and my grandchildren’s children will still be paying for their mess.

Unlike the article, I don’t say Fuckit, like the article suggests.

I say Fuckem.