Inflation : 40 Year High

[Warhippy]

26 minutes ago, nuckin_futz said:

 

Fancy that.

[ronthecivil]

On 7/26/2023 at 12:15 PM, Warhippy said:

*scrolls back over the last 55 pages at Hippy's posts saying just this*

 

You don't say....

 

Oh hey wait, absolutely ZERO disruptions in the supply chain.  Production still at near record levels.  Price is still jumping by 10 cents after staying static for the last 15 days without a single reduction.

 

fancy that, it is almost as though...food, fuel/transport.  the most significant drivers of inflation after housing are the largest part of the issue.  What does it boil down to?

Corporate greed.  Why?  because they know people are stupid enough to blame the government for it.

Well on oil....

 

Canadian oil is underproducing on purpose because as discussed nobody came to their aid when they almost went bankrupt so now they are being "prudent".

 

I mean, the government taxes gasoline to the hilt, blocks pipeline etc. so it's easy to blame government too.

 

Heck, the banks that put a gun to the head of oil companies "f you pay me" when they were in their darkest hour, well, that's a prime driver of the prudence, so you can blame them too.

 

And of course people, with their fascination with SUVs and bigger and bigger trucks and bigger everything, the number of people that gave up transit during the pandemic, and the fact everyone is just "revenge travelling" makes it easy to blame Joe Q public.

 

Fact is all those factors go into it. That's why it's so easy to point fingers. That's a LOT of blame to go around,

[Warhippy]

3 hours ago, ronthecivil said:

Well on oil....

 

Canadian oil is underproducing on purpose because as discussed nobody came to their aid when they almost went bankrupt so now they are being "prudent".

 

I mean, the government taxes gasoline to the hilt, blocks pipeline etc. so it's easy to blame government too.

 

Heck, the banks that put a gun to the head of oil companies "f you pay me" when they were in their darkest hour, well, that's a prime driver of the prudence, so you can blame them too.

 

And of course people, with their fascination with SUVs and bigger and bigger trucks and bigger everything, the number of people that gave up transit during the pandemic, and the fact everyone is just "revenge travelling" makes it easy to blame Joe Q public.

 

Fact is all those factors go into it. That's why it's so easy to point fingers. That's a LOT of blame to go around,

Canadian oil is underproducing because they allowed the US to do it in the 80s when the US system flooded money in to ensuring that Canada only had 1 customer for their product and that customer wasn't even Canadian.

 

The government does this and that but again, we do not truly refine our fuel here we end up buying back the bulk of it from US producers.  To say that we subsidize oil to the tune of billions annually and then do nothing for them is kind of not on point.

 

At days end oil and gas companies dictate the price.  We have VERY clear evidence of this right now because of how fuel is priced over oil.  Hell it jumped again over night in the Okanagan for no reason other than "hey, it's Sunday jack it up they'll blame the government again"

 

Fuel prices directly inflate the literal cost of EVERYTHING as increased transportation costs, increased energy costs get passed directly down to the consumer.  It costs 2 cents more to make this after the most recent fuel hike.  OK but i costs 2 cents more as well to get the raw materials to fabricate it.  Cool.  now it also costs 2 cents more to make it.  then 2 cents more to ship it to a holding facility.  2 cents more to load it.  2 cents more to transport it to a store.  2 cents more to unload it.

 

That adds up very fast and it's damning to us as consumers because we pay it yet all the hard done by oil and gas companies have barely recorded record profits for the last 8-10 consecutive quarters and need our sympathy

[ronthecivil]

1 hour ago, Warhippy said:

Canadian oil is underproducing because they allowed the US to do it in the 80s when the US system flooded money in to ensuring that Canada only had 1 customer for their product and that customer wasn't even Canadian.

 

The government does this and that but again, we do not truly refine our fuel here we end up buying back the bulk of it from US producers.  To say that we subsidize oil to the tune of billions annually and then do nothing for them is kind of not on point.

 

At days end oil and gas companies dictate the price.  We have VERY clear evidence of this right now because of how fuel is priced over oil.  Hell it jumped again over night in the Okanagan for no reason other than "hey, it's Sunday jack it up they'll blame the government again"

 

Fuel prices directly inflate the literal cost of EVERYTHING as increased transportation costs, increased energy costs get passed directly down to the consumer.  It costs 2 cents more to make this after the most recent fuel hike.  OK but i costs 2 cents more as well to get the raw materials to fabricate it.  Cool.  now it also costs 2 cents more to make it.  then 2 cents more to ship it to a holding facility.  2 cents more to load it.  2 cents more to transport it to a store.  2 cents more to unload it.

 

That adds up very fast and it's damning to us as consumers because we pay it yet all the hard done by oil and gas companies have barely recorded record profits for the last 8-10 consecutive quarters and need our sympathy

That is for sure. I think of gas prices as a economy capacitor. Sure everyone is monkeying with it in one way or other, usually in the make it cost more way, as discussed.

 

Butt that's why I started by saying "sure, inflation is in the target range RIGHT NOW, but that's largely on the (insert favorite adjective on timing or direction of) price of oil, which will go UP in fairly good confidence if economic activity picks up, which will of course drive inflation!

 

In other words, the drivers of inflation haven't really gone away at all, and perhaps that lower price at the pumps, the one we agree has a giant effect on prices, was itself transitory....

[ronthecivil]

1 hour ago, Warhippy said:

Canadian oil is underproducing because they allowed the US to do it in the 80s when the US system flooded money in to ensuring that Canada only had 1 customer for their product and that customer wasn't even Canadian.

 

The government does this and that but again, we do not truly refine our fuel here we end up buying back the bulk of it from US producers.  To say that we subsidize oil to the tune of billions annually and then do nothing for them is kind of not on point.

 

At days end oil and gas companies dictate the price.  We have VERY clear evidence of this right now because of how fuel is priced over oil.  Hell it jumped again over night in the Okanagan for no reason other than "hey, it's Sunday jack it up they'll blame the government again"

 

Fuel prices directly inflate the literal cost of EVERYTHING as increased transportation costs, increased energy costs get passed directly down to the consumer.  It costs 2 cents more to make this after the most recent fuel hike.  OK but i costs 2 cents more as well to get the raw materials to fabricate it.  Cool.  now it also costs 2 cents more to make it.  then 2 cents more to ship it to a holding facility.  2 cents more to load it.  2 cents more to transport it to a store.  2 cents more to unload it.

 

That adds up very fast and it's damning to us as consumers because we pay it yet all the hard done by oil and gas companies have barely recorded record profits for the last 8-10 consecutive quarters and need our sympathy

I agree on this too. There is a refinery in Prince George, and one in Burnaby, but that's all I now of in BC.

 

There's a lot of reasons it can be done cheaper in other places, and this you can stare at the government a lot harder. But if you have followed the massive subsidy battle to just build electric car batteries in Canada with the materials we bring out of the ground instead of just shipping them south, well, that's the kind of deals a mouse gets doing business with an elephant. I personally would love to see a refinery in say Kamloops area (should be right next to the pipeline and it is next to the rail and highways) that would serve you in the Okanagan. We can build it next to the copper smelter. (Instead of shipping concentrate to Quebec and Asia).

 

The government can pull out lots of money on royalties, they can pull out lots on the pump, but if you want it refined here, you need some good tax incentives. And someone needs to pony up a couple billion bucks. And when that happens the beers on me because I get emotional (in the good way) when common sense prevails. But until then I will just expect more of the same.

[The Arrogant Worms]

Inflation jumped higher last month, to 3.3%

 

https://www.cbc.ca/news/business/canada-inflation-july-1.6936557

 

Canada's inflation rate bucked its recent trend of slowing last month and instead rose at a 3.3 per cent annual pace in July, Statistics Canada said Tuesday.

That was an increase from 2.8 per cent the previous month. Gas prices were a major factor pushing up the inflation rate, mostly due to what economists call the base effect.

[6YPE]

2 hours ago, The Arrogant Worms said:

Inflation jumped higher last month, to 3.3%

 

https://www.cbc.ca/news/business/canada-inflation-july-1.6936557

 

Canada's inflation rate bucked its recent trend of slowing last month and instead rose at a 3.3 per cent annual pace in July, Statistics Canada said Tuesday.

That was an increase from 2.8 per cent the previous month. Gas prices were a major factor pushing up the inflation rate, mostly due to what economists call the base effect.

But Freeland thinks it's going down and we're headed in the right direction. How do we have a minister of finance that has zero financial background? Should we not have professionals that are highly trained running things and making decisions?

 

https://www.ctvnews.ca/politics/canada-s-finance-minister-calls-inflation-rate-dropping-within-target-range-a-milestone-moment-1.6484594

 

 

[bishopshodan]

27 minutes ago, 6YPE said:

But Freeland thinks it's going down and we're headed in the right direction. How do we have a minister of finance that has zero financial background? Should we not have professionals that are highly trained running things and making decisions?

 

https://www.ctvnews.ca/politics/canada-s-finance-minister-calls-inflation-rate-dropping-within-target-range-a-milestone-moment-1.6484594

 

 

She didn't say that in the article you posted...

She said it was a good moment (June numbers), thanked Canadians and stated that the 2.8 should provide some relief. She pointed out Canada being the lowest out of the G7.

Then when asked if she shard the BOC concerns and if the inflation rate will stay over 2% until 2025  she...'declined to "make predictions or forecasts." "I do not have a crystal ball," Freeland said'

The video in the article also says that a fall BOC increase is on the table.

The other dude quoted in the article is good stuff...Daniel Blaikie, NDP. I want to hear more from him going forward. I am sure he is the same guy that has some good housing ideas.

 

Anyway back to Freeland, she called it a milestone moment, not that it`s going down, not that it`s heading in th right direction. She simply, again, is pointing out we are the best of the G7, June was good, thank you Canadians and she doesn`t know what the bank will do.

 

 

[ronthecivil]

1 hour ago, 6YPE said:

But Freeland thinks it's going down and we're headed in the right direction. How do we have a minister of finance that has zero financial background? Should we not have professionals that are highly trained running things and making decisions?

 

https://www.ctvnews.ca/politics/canada-s-finance-minister-calls-inflation-rate-dropping-within-target-range-a-milestone-moment-1.6484594

 

 

Our financially inept finance minister that thinks you can spend your way out of inflation? (That would be like fighting fires by dousing it with gasoline). 

 

The causes of inflation, other than the supply chain slowly (but not yet completely) being fixed, and the amount of unfilled job positions going down (but still lots of them, and lots of labour strife, and still what used to be coveted jobs being unfilled, but not as much as before) are still there. Specifically huge money printing spending by the feds on social programs that for the most part aren't really needed (like dental care, it was by an large already in place) and paying people to sit on their ass when they could be working are still very much in place, and until fixed, there's going to be a bigger Canadian debt, more money supply in the system, more inflation, higher interest rates, and a more painful correction coming until, as I frequently put it, people get religion on spending within ones means.

[bishopshodan]

13 hours ago, ronthecivil said:

Our financially inept finance minister that thinks you can spend your way out of inflation? (That would be like fighting fires by dousing it with gasoline). 

 

The causes of inflation, other than the supply chain slowly (but not yet completely) being fixed, and the amount of unfilled job positions going down (but still lots of them, and lots of labour strife, and still what used to be coveted jobs being unfilled, but not as much as before) are still there. Specifically huge money printing spending by the feds on social programs that for the most part aren't really needed (like dental care, it was by an large already in place) and paying people to sit on their ass when they could be working are still very much in place, and until fixed, there's going to be a bigger Canadian debt, more money supply in the system, more inflation, higher interest rates, and a more painful correction coming until, as I frequently put it, people get religion on spending within ones means.

She does? did she say this? How does she think that works?

 

i replied to the poster you quoted because nothing he said was in the article. 

I dont know enough about inflation but it seems tied heavily to gas, isn't that the oil companies doing that? not the feds?

Also, is being the best in the g7 mean anything? 

 

[ronthecivil]

On 8/16/2023 at 7:36 AM, bishopshodan said:

She does? did she say this? How does she think that works?

 

i replied to the poster you quoted because nothing he said was in the article. 

I dont know enough about inflation but it seems tied heavily to gas, isn't that the oil companies doing that? not the feds?

Also, is being the best in the g7 mean anything? 

 

Well based on giving out tons of money in the so called effort to fight inflation (but mostly to the poor so it's at least progressive as they call it) that you have to borrow to get, which increases the money supply, which is the main driver of inflation. The oil companies wouldn't be able to charge what they charge if there wasn't money in people's pockets.

 

And of course, she also directed the banks to not go heavy on people that overstretched themselves financially buying max mortgage places at historic low rates with no regards as to what would happen if they went up, as foolish as that is, she simply told the banks to extend the mortgage for 100 years if need be. This just takes what should have been a cautionary tale on the public borrowing too much (which is also inflationary) and tossing it to the wind. 

 

So even with good intentions, it doesn't mean it's not inflationary. You can be progressive tax wise but still balance the budget, you can tell the banks not to overleverage themselves in the first place instead of just letting them lend to much to people that can't handle rate increases. If you did that, some people would pay more taxes, some people wouldn't be buying their dream home, but you could still have a progressive tax policy, a balanced budget, and lower house prices.

[The Arrogant Worms]

Warren Buffett may be bracing for a recession – and Michael Burry's latest big short is a 'good move,' says top economist Steve Hanke

 

https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-recession-michael-burry-big-short-steve-hanke-2023-8

[Warhippy]

Eby playing the voice of moderation?

 

From an NDP govt?

 

What?

 

https://www.bnnbloomberg.ca/b-c-premier-eby-calls-on-bank-of-canada-to-halt-interest-rate-hikes-1.1965769

 

https://vancouver.citynews.ca/2023/08/31/bc-bank-of-canada-interest-rate-hikes/

[bishopshodan]

On 8/28/2023 at 10:23 AM, The Arrogant Worms said:

Warren Buffett may be bracing for a recession – and Michael Burry's latest big short is a 'good move,' says top economist Steve Hanke

 

https://markets.businessinsider.com/news/stocks/warren-buffett-berkshire-recession-michael-burry-big-short-steve-hanke-2023-8

Burry is down 42% so far on his short.

 

https://finbold.com/heres-how-much-michael-burry-is-down-on-his-1-6-billion-bet-against-stock-market/

[ronthecivil]

On 8/31/2023 at 11:26 AM, Warhippy said:

Eby playing the voice of moderation?

 

From an NDP govt?

 

What?

 

https://www.bnnbloomberg.ca/b-c-premier-eby-calls-on-bank-of-canada-to-halt-interest-rate-hikes-1.1965769

 

https://vancouver.citynews.ca/2023/08/31/bc-bank-of-canada-interest-rate-hikes/

If he openened with "I balanced the budget" he might have a horse! \Which I think they haven'\\t compltely screewed up, but it's still posisble.

 

[Heretic]

Hands up everyone whose salary has increased by 7 times since 2005?

 

I just saw a place for sale in Coldstream, BC, on 19.5 acres that sold in 2005 for $419,500 and now they are asking $3,000,000 for it.

[ronthecivil]

On 9/4/2023 at 12:36 PM, Heretic said:

Hands up everyone whose salary has increased by 7 times since 2005?

 

I just saw a place for sale in Coldstream, BC, on 19.5 acres that sold in 2005 for $419,500 and now they are asking $3,000,000 for it.

There needs to be capital gains taxes charged on houses when you sell them. 2.5M tax free if it happens to be your primary residence is not exactly progressive. And it doesn't help housing prices just letting all that free money pile into the system of those that already have money. So it's also inflationary to allow it to gain tax free.

 

And it's also a good way not to get elected, what with 70%+ of Canadians in the "own property" camp. Don't tax me bro will beat that every time. Even if the 70% is unwittingly shooting themselves in the foot by doing so....

[The Arrogant Worms]

Goldman Sachs cuts US recession odds to 15% as economic optimism grows

 

https://www.cnn.com/2023/09/05/business/goldman-sachs-recession-odds/index.html

[Warhippy]

The math is in apparently.

 

By the numbers the BoC suggests that the carbon tax has an almost nil effect on inflationary pressures.

 

https://www.cbc.ca/news/canada/calgary/carbon-tax-inflation-tiff-macklem-calgary-1.6960189

 

There's some, and one could stress some, point to the Conservative Party's steady drumbeat.

It's inescapably true that the federal carbon tax makes life for Canadians more expensive — before the "climate action incentive" rebate — and Bank of Canada governor Tiff Macklem reiterated this on a visit to Calgary on Thursday.

He brought further clarity to the highly charged political discourse by putting a number on it.

That number: 0.15 percentage points of the inflation increase can be attributed to the carbon tax.

[ronthecivil]

On 9/8/2023 at 12:58 PM, Warhippy said:

The math is in apparently.

 

By the numbers the BoC suggests that the carbon tax has an almost nil effect on inflationary pressures.

 

https://www.cbc.ca/news/canada/calgary/carbon-tax-inflation-tiff-macklem-calgary-1.6960189

 

There's some, and one could stress some, point to the Conservative Party's steady drumbeat.

It's inescapably true that the federal carbon tax makes life for Canadians more expensive — before the "climate action incentive" rebate — and Bank of Canada governor Tiff Macklem reiterated this on a visit to Calgary on Thursday.

He brought further clarity to the highly charged political discourse by putting a number on it.

That number: 0.15 percentage points of the inflation increase can be attributed to the carbon tax.

Uh still inflation is for real right? Like I dunno 8 percent? Taht's a lot!