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by Baazill from Arnold

Last Post 71 days, 20 hours Ago


Prices are not rising!
Apr 15, 2008 | 11:46 AM
Category: Political
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Ok, so I've been following some trends for a while here to see if what I'm thinking is on the right track or not.  I'm pretty sure it is, so here goes.

Prices are not rising.  The reason that the cost of everything has gone up is that the U.S. Dollar is sinking internationally.  It seems to me that the Fed has been on a tear of cutting interest rates, which sounds really good.  But in the process of cutting interest rates, the value of our dollar is going into the crapper.

I know that most people won't understand this next statement, I'm not an economist either, but I'm going to say it anyway.  Maybe the fed should re-raise the rates.  Get them back to some kind of normal level.  Maybe people should learn to tighten their belts.  We, as a country, have thrived on over-indulgence.  It's been our moniker for years.

I would like to see the President bite the bullet.  Go on TV and tell people "Look, here's the deal.  We are kicking the rates back up.  Yes, it is going to be really tough going for a while, but everything will eventually be ok.  If we don't get the dollar strong again on the international market, the results will be more catastrophic than if we keep going like we are."

If he did that, I might at least have some respect for the man.  The truth of the matter is, we are digging our own hole, and it just keeps getting deeper.

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Member Comments Total Comments: 12
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AnswerMan read my blog
Apr 15, 2008 | 12:45 PM

I understand your intentions but I respectively disagree.

Prices are rising. The true definition of increase is "to become greater in size or amount, to grow" - therefore the value of the dollar has no relevance to the meaning of price increase. Does it cause prices to increase/decrease - sure.

Increases in product prices are because the cost of making (labor, R&D) and delivering (fuel) these products. Have you noticed that a home service call for an appliance (HVAC) went from $45 to $80 and more in 24 months?

The increase in car prices is due to the labor costs and benefits associated with each automobile. Greed has also been a huge factor in higher prices.

I am a firm believer that this economy is so bad that we can have a 30 year fixed rate mortgage at 5% nad buyers will still, "beware". This year (2008) will be the worst you've seen in 30 plus so sit back, expect the worse, and stay home!
CBNSTL read my blog
Apr 15, 2008 | 1:56 PM

Economy is so bad. The neighbors collect unemployment and have food stamps were complaining about the price they had to pay on a big screen tv. The kids across the road who are on the lunch school program have only three games systems with several dozen games for each. Being a grocery store clerk, seen many a family paying with food stamp EBT Card having name brand clothes and driving real nice vehicles. We are not talking about temporary food stamp help but long time receiptitants.

The economy is real bad for some.
Baazill read my blog
Apr 15, 2008 | 3:46 PM

I hear ya CB. Just doesn't pay anymore to actually hold a job and try and do things the right way, no matter how hard it gets.
bubba-right-wing read my blog view my photos
Apr 15, 2008 | 7:22 PM

To Baazill HELLO SIR. No bash this time and here comes a heart felt comment. I do not have a heart but here goes. As a real estate investor I watched for years as Allen Greenspan (Fed Chairman) continued to keep interest rates to low. To low in my opinion and if rates had been 1 or 2 points above its highest point, there were have been room for the Fed to adjust the rate for inflation or economy concerns. The Low interest rates created the lowest rates for home buyers ever and for the longest time. The Real estate buying boom and now bust was greatly effected by the continued low interest rates. Allen Greenspan is now being questioned about his practices and I feel he made mistakes keeping interest rates to low. Greenspan also now works for a Billionaire investor that made his fortune by selling Real Estate stock short. ??????? Hope I made some sence. I was trying to be constructive this time at least.
Chickenkiller read my blog
Apr 15, 2008 | 10:23 PM

Bubba - agree partially with you, but I think there's more.

My thought is that the rates were kept artificially low to stimulate housing construction (read jobs) since we as a country had worked long and hard at reducing the amount of manufacturing in this country through allowing OSHA and EPA to run through manufacturing businesses unchecked.

When homebuilding started to go south due to too many properties available, the low interest rates and regulation of lending practices was put in place to give loans to people who were not otherwise creditworthy.

We are now reaping the results of this over-regulation.
jimbobbob read my blog
Apr 16, 2008 | 9:37 PM

Baazil

Yeah, I think you are correct about Fed rates. The problems we are facing today are a direct result of over-regulation.

Our system does not give incentive to work. Too many people are playing the system. Seems to me that our policies helped create this mess.

Good blog, liked your comments.
Speedy62269 read my blog
Apr 16, 2008 | 10:36 PM

Soooo prices are rising is what I am gathering from the comments? Labor has a huge impact on pricing. With the minimum wage increased to $7.50 (almost $2 increase in 24 months) our every day items go up and up.

Those combo meals (I know - not healthy but quick) at McDonalds have gone up from $1.99 to nearly $3.29 for the same sandwich combo in 3 years.

I say we pay Congress (any lawmakers) the average household salary and give them the bare minimal healthcare (as they have done now) and see what they say.
PSylvester20 read my blog
Apr 17, 2008 | 12:40 PM

I'm glad someone finally said it. Interest rates have been so low for so long that people have forgotten how to SAVE money. And why should they? You don't earn any interest on it and you don't pay much interest on a loan. So why not live beyond your means?
Now our president, and equally brilliant congress, hope we'll blow our "economic stimulus" checks on more self-indulgent crap so jump start the economy. You can only borrow and spend for so long. It's eventually going to bite us all in the butt!
Speedy62269 read my blog
Apr 17, 2008 | 4:15 PM

PSylvester20: Agree. It's nice to know we can borrow money on a home at 5.75% for a 30 yr FRM but with the unstable economy and fear of job loss - no one is buying!

Even the long term CD's are low. Who can we blame?
Reo184
Apr 18, 2008 | 6:53 AM

Money, wow when I get it it goes right out the door for bills. I am a student currently at ITT Technical Institute and can barely get by. The price of gas and everything else in life has gone up, except my pay check. So what do you do when you don't qualify for government help? Sally Mae is dosing my loan for School, but even they are cutting back. So they say the economy is getting better, then why can't I find a job hardly any where now?
SikUvTheRite read my blog
Apr 22, 2008 | 12:03 PM

Prices are not rising? Wow, that's another good one.

It proves that some people don't need drugs to completely live in a void removed from any sense of reality.

I have to admit, not ALL prices are going up equally. That means, of course, that some people are just getting screwed - the workers and small business people who buy all the things going up but can't charge a higher price because of market rates are really losing right now.

Gasoline, home insurance, food, milk, lettuce (?), heck just about anything made, grown, or based in America is going up. The only thing remaining cheap are the cheap junk being made in China, most electronics (TVs, computers, etc.), plastic toys, etc. And we all know why those things aren't going up - yet.

I do agree our dollar sinking isn't helping our trade right now, but it's mostly the American pig taking more and more to pad their already fat overweight pocketbooks that's causing our problem. And the Republicans stand there and let them while diverting the public's attention with gun and religious issues. Of course, that works for about 40% of the population.
SikUvTheRite read my blog
Apr 23, 2008 | 4:23 PM

Just heard today that beer prices are going up because of the huge increase in price of commodities like wheat and barley. Now THAT'S a tragedy!

But what did you say again, prices AREN'T going up?
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Baazill

Custody case is over. Let me self get screwed over by the lawyers so the kids have to stay with her for now. With any luck, I can get them before they start high school so I can get them back on track and not watch them become a statistic.

Member Since: 1/12/2007


 

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