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Inflation...worse than we all think?

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    So. This week is my boyfriends 34th Birthday and what does his mom give him? He gets a magnet that has the cost of things since he was born... I was shocked and appalled that prices have increase so much in 34 years!

    Coffee: 2.50 a lb to what 15 a lb now?
    Gas: 79 cents a gallon to 3.30 a gallon now...ok I knew this one
    Milk: 1.70 a gallon to 3 a gallon ...finally one not so bad

    Imagine in 30 more years...
    Coffee could be 90 dollars!

    Is this normal? Can we stop it?

    HELP!
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    In l938, I bought gas for my Chevy for l2 cents a gallon, 8 gallons for 96 cents. It is now $4.00 a gallon. What will gas be in 70 more years? You figure it out. Math is my worse subject. I just read a poll that many voters will not vote for Obama unless gas prices go down. Crazy! What can the Republicans do to lower gas prices? Nothing! Since oil companies are recording as much as ll BILLION DOLLARS PROFIT for only 3 month periods, it is obvious that oil companies are a monopoly and there is no competition to bring down gas prices. Pres. Obama is not an oil man as pres. Bush was. Obama promises to investigate the oil companies for possible monopoly violations, and he also wants to do away with the 4 Billion tax cut we give oil companies every year. The Republicans refuse to go along with any investigation, and they positively insist we continue to give them this 4 BILLION TAX CUT EVERY YEAR.  The good news is as gas prices go up and up, we will produce more and more better  battery-operated autos at less and less cost. The day will come, sooner than later,  when we all will own battery-operated autos, and we will never have to buy gas again!  God bless.
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    The great writer Ogden Nash wrote, "Money, I do not think you are holy, But how can you go out so fast and come in so slowly?" I just read that many ecomomists predict than gas prices will go down about 50 cents a gallon. That decrease in gas prices plus the end of bin Laden will make it that much more difficult to defeat Pres. Obama in 20l2. Will Trump run for president? Strange. Republicans are praying Trump does NOT run. Democrats are praying he does! 'I believe in prayer, but one should not waste their prayers on elections. I pray that millions of unemployed Americans find jobs soon. THAT WILL GUARANTEE AN OBAMA REELECTION. God bless.
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    Are we heading for "runaway" inflation? It is possible. I hope we never do see this. Quite a few South Amrerican countries have had "runaway" inflation. I read recently that this one country had "runaway" inflation and the smallest denomination paper bill they printed had a value of ONE BILLION DOLLARS. Can you imagine a loaf of bread costing l0 BILLION DOLLARS? Bill Gates, our richest man, has about 45 BILLION DOLLARS, not quite enough to buy 5 loaves of bread!!! Nightmare? It certainly is and it would make all our current money in banks completely worthless. I, as with most old people, have all my money in certificates of deposit with banks. Bill Gates and I finally have something in commom. "Runaway inflation" will WIPE US BOTH OUT!!! God bless.
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    It is strange but some people just do not understand that money is worth only what it will buy. Now if the U.S. govt. gave a million dollar check to every American family, we would all be millionaires. Right? We could all retire. Right? No, wrong. Okay, all families receive a million dollars. We all retire. You go to buy gas. No gas at all. Remember, we are all retired. You go to buy food. Same story. No food. YOU HAVE A MILLION DOLLARS, AND YOU ARE GOING TO STARVE TO DEATH!!! Now you know. MONEY IS WORTH ONLY WHAT IT WILL BUY. Money is, AS WE ALL NOW, BUYING LESS AND LESS EVERY DAY. I doubt if even one American knows what our money will buy this afternoon, let alone what money will buy tomorrow. God bless.
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    Inflation is a natural phenomenon. - Milton Friedman

    Today, bread is near 15 times its 1950 price and decent labtops are about $500.
    If bread was still 15 cents, would decent labtops cost $34 (rounding)?
    NO.

    Theoretically, everything has an exact 'cost' of production. This exact price could be thought of as an identifying code for a particular good or service, which sellers add their profit margins to and then offer for purchase.
    Now, monetarily we don't measure infinitely small price differences between goods and services. We could introduce coins below the penny, but our physical accounting efforts would cost us more than any savings realized (long-term) through defining exact measurements of price.
    So we kind of hit the dollar's Plank Scale at the penny. Even if we employed quantum computers for accounting and managed a digital currency....we still would find a limit to our ability to determine exact minute details.

    Now, there are literally thousands of components in a computer. Some more valuable than others....
    It simply would not be possible to differentiate so many items with only 3400 currency units. You would end up with raw materials costing nearly as much as the internal components of the computer that they are turned into. This does not make sense. It's unworkable even on huge economies of scale. You would have to employ slave-labor.

    Point is....as economies grow in complexity.....with more goods and services....and greater demand.....the monetary base has to extend to the right of the decimal point.
    Otherwise, nobody could make determinations on the relative value of goods...and expansion would not be possible.

    Now, we live in a world where the prices of goods fluctuate with respect to the fundamentals of supply and demand, which are often influenced (for better or worse) by intervening governmental forces. It's worth noting that price increases can occur during both expansion and contraction of the money supply. For instance, when banks have less funds on hand, it costs more to borrow.
    .....................
    Today's current price increases are primarily resulting from rising energy prices, resulting from a smorgasboard of issues.
    In many ways, globalization has provided price stability (relatively speaking). With a global market for oil= there are more producers and more buyers impacting prices. The affect of commodities speculation in a smaller marketplace would be even worse. Secondly, globalization connects nations otherwise hostile to one another, producing interests in cooperation.
    America's close ties to Saudi Arabia have prevented another recurrence of OPEC political stunts, even as our dependency on foreign sources of oil and, thus, vulnerability to political blackmail has risen.

    Europeans have been paying upwards of $10 a gallon for years. This is partly due to taxes...and environmental regulations....but also due to a lack of domestic supplies and different refining capacities.
    America's domestic supplies help offset costs in transporting oil and our refining capacity deficiencies for gasoline, while infuriating, aren't the same as the situation in Europe.
    Our refineries are geared to produce gasoline, while Europe is more reliant on diesel.

    But the fundamentals have changed. It costs more to extract oil, as less and less is as easily pumped from the ground; this while demand has steadily risen as a result of emergence of BRIC. Meanwhile, we are legally mandating gasoline that's 10% domestic ethanol. However, our domestic ethanol sources primarily consist of the corn variety, which is not as efficient as the sugar beet-based variety that Brazil produces. So, there is a small energy conversion savings, which reduces dependency on the world oil-market, but it comes at the expense of higher food prices. It's a geo-political shift, as opposed to a cost-savings maneuver.

    So, we got a lot going on there just in terms of physical cost increases; throw in some high marginal tax cuts into a loosely regulated marketplace; add War in 5 Muslim countries by my count (and a rather hostile relationship with Iran and, to a lesser extent, Venezuela), resulting in one hefty "fear premium," and you got yourself the ingredients of a raging bull market for the price of oil, irrespective of fluctuations in demand.*
    (I forgot to mention the "Arab Spring")
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    The recession never ended and never will as long as greed rules.  What happened to work hard, follow the rules and you will be rewarded?  It's more like see who who you can squash fast and first to get where you want to be.  You can not keep cutting taxes, jobs, education, services, and so on and not expect to have finanial problems. 
    We elected people to do what is right for this country not all the others.  It is necessary to take care of your own backyard others.