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 Yes, the US has an expansionary monetary policy right now which does cause general inflation (in this case it is being correctly used to combat a general post bubble deflationary environment) but our inflation is specific to food and fuel where as just about everything else is experiencing deflation. Also food prices are at record levels all over the world independent of what happens in dollar denominated markets.Originally posted by gribbler View PostHe's not competing with Ben. You just aren't bothering to think about why an expansionary monetary policy would make prices go up.Try http://wordforge.net/index.php for discussion and debate.
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 The price of food rose and it doesn't appear that any natural disasters substantially reduced supply.Originally posted by notyoueither View PostEvidence that incomes of at least a large number of 'poor' people increased greatly would help.
 
 Unless you have an alternative explanation for why food prices rose (one beyond "um, QE, therefore!")? Do you think every farmer in the world conspired to charge more money?
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 He should now come back with info about rising standards of living in China (and India?).Originally posted by Jon Miller View PostAll the data I have seen show that the income of the lower ~40% has held constant over the last ~40 years.
 
 JM(\__/)
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 Kuciwalker was responding to a criticism of the Fed that its policy would make the price of food go up, and he pointed out that the same policy also makes wages go up so it doesn't make it harder for the poor to buy food. Bad weather and other external factors do make it harder, of course.Originally posted by Oerdin View PostYes, the US has an expansionary monetary policy right now which does cause general inflation (in this case it is being correctly used to combat a general post bubble deflationary environment) but our inflation is specific to food and fuel where as just about everything else is experiencing deflation. Also food prices are at record levels all over the world independent of what happens in dollar denominated markets.
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 Ehrr, please explain why such a policy should force prices going up ? Yes, if it creates inflation, the prices do that, but otherwise it will be demand/competition/cost that decides the price.Originally posted by gribbler View PostHe's not competing with Ben. You just aren't bothering to think about why an expansionary monetary policy would make prices go up.With or without religion, you would have good people doing good things and evil people doing evil things. But for good people to do evil things, that takes religion.
 
 Steven Weinberg
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 Commodities are a global market. The Fed has no power to make commodities cheaper relative to wages in the US, except perhaps by grossly mismanaging the money supply in a way that throws the global economy into a depression, collapsing economic growth in the developing nations even more than at home.Originally posted by Jon Miller View PostOf course I am speaking of the US.
 
 JM
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 I am sorry, I misunderstood you, I didn't realize you were talking about poor in India/China/etc.
 
 The rising wealth of the third world definitely increases the demand for food.
 
 JMJon Miller-
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 GENERATION 35: The first time you see this, copy it into your sig on any forum and add 1 to the generation. Social experiment.
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 Heck yeah there have been natural disasters which have substantially reduced supplies. Remember the fires which swept through Russia as most of their grain crop was wiped out by drought? Remember how Australia has had drought for years with farms so dry not even weeds grow? We're talking about that happening across most of Australia's wheat belt. China has had massive floods which swept down their main rivers, which just so happens to be the area making up China's rice bowl. For more specific localized example is how bananas now cost ~$4 a banana (not a bunch) in Australia due to a cyclone destroying most of Australia's banana plantations.Originally posted by Kuciwalker View PostThe price of food rose and it doesn't appear that any natural disasters substantially reduced supply.
 
 There have been a lot of big natural disasters over and above bad government policy (like the ethanol debacle).Try http://wordforge.net/index.php for discussion and debate.
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 Originally posted by gribbler View PostKuciwalker was responding to a criticism of the Fed that its policy would make the price of food go up, and he pointed out that the same policy also makes wages go up so it doesn't make it harder for the poor to buy food. Bad weather and other external factors do make it harder, of course.
 Has the Fed's policy inflated markets, including commodities? My impression from reading is that it has (I could be mistaken).
 
 Kucis might say that the problem is that not much of it is making it through to the rest of the economy. Or, that there has not been enough of it to make businesses and individuals behave as if deflation were not imminent.(\__/)
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 That's a bad idea, ask Argentina and Thailand. Food still costs next to nothing compared to incomes for most Americans so let the farmers cash in on world markets.Originally posted by Kuciwalker View PostThat said, Congress could certainly control rising food prices at home by prohibiting or taxing exports, since we are a net exporter of food  Try http://wordforge.net/index.php for discussion and debate. Try http://wordforge.net/index.php for discussion and debate.
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