Hyperinflation.

[ZenOps]

http://www.americanthinker.com/2011/02/hyperinflation_is_a_small_pric.html

Its getting close. Normally it would have to be about 300% increase on a majority of goods before it could be considered "hyper".

But have no doubt, those cotton overalls might be twice the price they were last year.

[themack89]

Farmers are hoarding cotton and not selling it 'hoping' prices will continue rising. Spot cotton prices I would say are artificially inflated and not super accurate.

Agreed though... The situation of the US Dollar is a frightening one.

[broken_legs]

Originally posted by themack89
Farmers are hoarding cotton and not selling it 'hoping' prices will continue rising. Spot cotton prices I would say are artificially inflated and not super accurate.

Agreed though... The situation of the US Dollar is a frightening one.

Wait until next year when soy and corn farmers plant cotton instead.

[ZenOps]

Notice the one thing that substantially went down.

http://markets.ft.com/markets/commodities.asp

Natural gas.

No wonder the Finance minster quit... Still, Alberta has diversified enough to take the blow.

[sputnik]

Originally posted by ZenOps
Notice the one thing that substantially went down.

http://markets.ft.com/markets/commodities.asp

Natural gas.

No wonder the Finance minster quit... Still, Alberta has diversified enough to take the blow.

Are you sure about that?

The province budgets roughly based on a 65/35 gas-oil split.

If natural gas isn't pulling it's weight, Alberta is in some serious trouble.

This year Alberta is pulling $5B from the Heritage Fund. That leaves less than $11B left. How long will Alberta be able to continue with low natural gas prices?

Another problem with "diversification in Alberta" is that most of those diversified industries still rely on a strong energy sector. Try to name a few industries in Alberta that could survive or would remain without O&G? Aside from agriculture (which is TINY in comparison) it's pretty hard to come up with a list.

[ZenOps]

We will be allright.

There might be a small debt and deficit, but compared to the rest of Canada and the US, that is outright amazingly awesome.

Its time to worry - when Newfoundland starts sending equalization payments to us.

The US paper and electronic dollar is heavily contributing to inflation no doubt, but we can't do much about it - they are a democratic nation and if they want to print up an extra $600B every year and dilute their dollar to the potency of a runny egg, that is their choice.

[TheRealTimHorton]

Originally posted by ZenOps
We will be allright.

There might be a small debt and deficit, but compared to the rest of Canada and the US, that is outright amazingly awesome.

Its time to worry - when Newfoundland starts sending equalization payments to us.

The US paper and electronic dollar is heavily contributing to inflation no doubt, but we can't do much about it - they are a democratic nation and if they want to print up an extra $600B every year and dilute their dollar to the potency of a runny egg, that is their choice.

It is their choice and it becomes everyones problem.

Dollar dilutes.. Wealth is transferred to commodities.. Price of commodities rises.. Cost of living rises.. Our CPI continues rising.. We gain nothing and actually start to lose. I can already see it happening because my wage is not going up, and my President's Choice coffee that I buy used to be 9.99 a few months ago, now it is 12.99. Sugar prices are sky high, cotton prices are sky high, coffee prices are sky high.. As brokenlegs mentioned Corn and Soy prices may be rocketing next year.. Does it matter if our dollar is on par with USD? How will this affect our trade with them? Is the value of our homes rising? Were you planning on moving to the states with this increased US purchasing power?

End Rant :D

I think this problem is very difficult to fully understand in every aspect, thus it is difficult to truly respect the problem.

I truly believe we will be writing and witnessing history: the next great transfer of wealth in the history of the world.

Cheers

*Edit not entirely correct... Our CPI is almost at 2008 levels. Been trending upwards since though.

[ZenOps]

I hear ya.

Its funny that Canadian peeps aren't more up in arms over US dollars. I guess we arent too worried because they are still paying us outrageous prices for oil&gas. I can see how other countries are piping mad though.

By the time a US cheque is converted and cleared, it may have lost 5% of its purchasing power, even with base commodities.

Some economists draw the line at 80% per year to start yelling "hyperinflation" which seems about right to me.

Imo, as a finished good, the F-35 fighter is not quite as bad as raw cotton. That being - only inflated about 100% in one year, rofl :rofl: Better buy them now, because if we wait two years, it won't cost $16 billion, it will be $64 billion at the rate the US is diluting. Or wait... Doesn't that mean they were supposed to be $8 billion when we ordered them last year? lololol.

[troyl]

http://www.cnbc.com/id/41532451


interesting slide show.