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Tag: Price

  • Republican debate: Why you may hear big numbers like 19% inflation, and how to make sense of it all

    Republican debate: Why you may hear big numbers like 19% inflation, and how to make sense of it all

    Economists don’t much like presidential-campaign seasons. For them, it’s a bit like seeing their manicured gardens getting trampled by schoolchildren having a water-balloon fight.

    Robert Brusca, the president of consulting firm FAO Economics, predicted that the political discussion of the U.S. economy in the 2024 campaign would be “a farce.”

    Talk of inflation is likely to dominate the Aug. 23 Republican debate, for example.

    Republicans, eager to lay the blame for higher prices at the feet of President Joe Biden, are going to make the strongest case they can for that. For them, it is a happy coincidence that inflation started to pick up right when Biden was sworn into office.

    Larry Kudlow, a former top economic adviser to President Donald Trump, put it succinctly. “I have numbers. The consumer-price index is up 16% since February 2021. Groceries are up 19%. Meat and poultry up 19%. New cars up 20%. Used cars up 34%,” Kudlow said in an interview on the Fox Business Network.

    From last month: Mike Pence says inflation is 16%, but CPI is 3%. This is his logic.

    Unlike Kudlow, the Federal Reserve doesn’t usually measure inflation over 29 months. Instead, the central bank favors using inflation data that looks at the past 12 months.

    By that year-over-year measure, CPI is up 3.2%. Groceries are up 3.6%. Meat and poultry prices are up 0.5%. New-vehicle prices are up 3.5%, but prices of used cars and trucks are actually down 5.6%.

    Economists, meanwhile, tend to like even shorter measures, such as the three-month annualized rate. They think the 12-month rate says more about the rate a year ago than it does about what is happening today.

    “Looking at year-over-year [data], the only new piece of information is the current month. You are looking at 11 months that you already know,” said Omair Sharif, president and founder of research company Inflation Insights.

    Using the shorter metric, headline CPI for the three months ending in July is up 1.9%, while food at home rose 1.1% and meat and poultry is down 4.5%, he said.

    Trends have been favorable in recent months, but that might not last. “It’s been a good summer,” Sharif said. “But unfortunately, the winter data won’t be as pleasant.”

    What caused the spike in inflation?

    Economists tend not to blame one political party or the other for spikes in inflation.

    In the 1970s, for example, the culprit was increases in oil prices by the Organization of Petroleum Exporting Countries.

    This time, there was no one single factor. While the debate is not yet over, economists tend to focus on the pandemic, the war in Ukraine and the move to end reliance on fossil fuels in order to combat climate change.

    Brian Bethune, an economics professor at Boston College, said prices started to rise when the healthcare industry had to adjust to a new, unforeseen risk. There were steep costs to dealing with the deadly coronavirus and developing vaccines.

    People working in frontline industries were able to command higher wages. And demand outstripped supply for many things, as shelves were emptied by consumers and supply chains were strained.

    Bethune also stressed recent moves toward renewable energy. The best way to explain inflation to your grandmother, he said, is to look at a chart of electricity prices.


    Uncredited

    The steady increase stems from efforts to move closer to a carbon-free economy, Bethune said. And those prices get passed along “right through the whole cost pressure of the economy,” including the price of refrigerated foods.

    Inflation boomed and is now coming off its peak, said Brusca of FAO Economics. Prices are still rising, but not at the same rapid clip. And they won’t roll back to prepandemic levels.

    “Consumers are caught in a trap,” he said. “If prices are going to come down, you have got to have deflation.”

    Deflation comes with its own unique set of woes. It can make the cost of borrowed money, like mortgages, much more expensive. And it can lead to serious economic weakness.

    “All of this is why the Fed targets price stability,” Brusca said.

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  • Consumers seeing substantial improvement in U.S. economy over past 3 months: University of Michigan survey

    Consumers seeing substantial improvement in U.S. economy over past 3 months: University of Michigan survey

    The numbers: The University of Michigan’s gauge of consumer sentiment inched down to a preliminary August reading of 71.2 after hitting a 22-month high of 71.6 in the prior month.

    Economists polled by the Wall Street Journal had expected sentiment to inch up to a 71.7 reading in August.

    Another key part of the report is the U. of M. measure of inflation expectations.

    According to the report, Americans’ expectations for overall inflation over the next year slipped to 3.3% in August from 3.4% in the prior month, while expectations for inflation over the next 5 years inched down to 2.9% from 3%.

    Key details: According to the Michigan report, a gauge of U.S. consumers’ views on current conditions rose to to 77.4 in August from 76.6 in the prior month, while a barometer of their future expectations fell to 67.3 from 68.3.

    Big picture: Sentiment has been boosted by waning recession fears and disinflation in grocery store prices.

    What the University of Michigan said: “Consumer sentiment was essentially unchanged from July, with small offsetting increases and decreases within the index.  In general, consumers perceived few material differences in the economic environment from last month, but they saw substantial improvements relative to just three months ago,” said Joanne Hsu, the director of University of Michigan consumer surveys.

    Market reaction: Stocks
    DJIA

    SPX
    were mixed in early trading Friday while the yield on the 10-year Treasury note
    BX:TMUBMUSD10Y
    rose to 4.12%, the highest level since the spike last week after Fitch Ratings downgraded the U.S. credit rating.

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  • Concept Art From A Canceled, Live-Action Robotech Movie

    Concept Art From A Canceled, Live-Action Robotech Movie

    For 15 years now, people in Hollywood have been trying to get a live-action Robotech movie made. Specifically, a movie based on Robotech’s first and most popular season, which was a Western repackaging of Japanese masterpiece Macross.

    Robotech’s original animated intro

    In 2007 it was Tobey Maguire leading the charge for a Warner Bros. production that ultimately went nowhere. Eight years later Sony took a swing, with Aquaman director James Wan attached, but it too would eventually wind up cancelled. Now we’re getting a third and more recent attempt, with Sony trying once again, announcing in 2022 that Hawkeye director Rhys Thomas will be trying to get the adventures of Rick Hunter and friends on the big screen.

    This third try might have a better chance of actually getting made; aside from regular Hollywood politics and economics, previous attempts were also plagued by a long-running legal standoff that had stymied Western releases of Macross products for decades. They were largely resolved in 2021, clearly paving the way for Sony’s renewed attempts at getting a Robotech movie made.

    Anyway, enough background! This is an art feature, not a history lesson. But I needed to spell all that out so that we’re clear about what’s being showcased tonight: a collection of art from that middle project, Sony’s aborted first attempt that, after suffering a big setback in 2018 when Wan bailed to make Aquaman, was quietly cancelled in 2019.

    Most illustrations focus on the SDF-1, Macross Island (whose vibes Price absolutely nails here) and redesigned Veritech fighters, though there are also some works showcasing original plot elements (like the oil rigs) that would have been new for this particular film.

    These pieces were all done by veteran artist Col Price, who has contributed to series like WipeOut and Battlefield, and whose work we’ve featured on the website previously. You can see more of Col’s stuff at his personal site and ArtStation page.


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    Luke Plunkett

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  • Get Used to Expensive Eggs

    Get Used to Expensive Eggs

    Over the past week, my breakfast routine has been scrambled. I have had overnight oats, beans on sourdough, corned-beef hash and fried rice, and, on a particularly weird morning, leftover cream-of-broccoli soup. Under normal circumstances, I would be eating eggs. But right now, I’m in hoarding mode, jealously guarding the four that remain from a carton purchased indignantly for six dollars. For that price—50 damn cents each!—my daily sunny-side-up eggs will have to wait. The perfect moment beckons: Maybe a toasted slab of brioche will call for a luxurious soft scramble, or maybe I will cave to a powerful craving for an egg-salad sandwich.

    Eggs, that quintessential cheap food, have gotten very, very expensive in the United States. In December, the average price for a dozen eggs in U.S. cities hit an all-time high of $4.25, up from $1.78 a year earlier. Though the worst now seems to be behind us, there’s still a way to go before consumer prices hit reasonable levels, and now Americans are starting to crack. Online, the shortage has recently hatched endless memes: In some posts, people pretend to portion out eggs in plastic baggies, like drug dealers (Pablo Eggscobar, anyone?); another recurring bit suggests painting potatoes to hunt at Easter. The high prices have even led to egg smuggling, and raised the profile of “rent-a-chicken” services where customers can borrow hens, chicken feed, and a coop for a couple hundred bucks.

    Surging egg prices are partly a familiar story of pandemic-era inflation. Producing eggs costs more because fuel, transportation, feed, and packaging are more expensive now, Jada Thompson, an agricultural economist at the University of Arkansas, told me. And it doesn’t help that there are no great substitutes for eggs. But a big reason that prices are so high right now is because of the avian flu—a virus that infects many types of birds and is deadly for some. Right now, we’re facing the worst-ever wave in the U.S., which has decimated chicken flocks and dented America’s egg inventory. Just over the past year, more than 57 million birds have died from the flu. Some much-needed relief from sky-high egg prices is likely coming, but don’t break out the soufflé pans yet. All signs suggest that avian flu is here to stay. If such rampant spread of the virus continues, “these costs are not going to come down to pre-2022 levels,” Thompson told me. Cheap eggs may soon become a thing of the past.

    This isn’t the first time American egg producers have encountered the avian flu, but dealing with it is still a challenge. For one thing, the virus keeps changing. It has long infected but not killed waterfowl and shorebirds, such as ducks and geese, but by 1996, it had mutated into the “highly pathogenic” H5N1, a poultry-killing strain that is named for the nasty versions of its “H” and “N” proteins. (They form spikes on the virus’s surface—sound familiar?) In 2014 and 2015, H5N1 ignited a terrible outbreak of avian flu, which gave U.S. poultry farmers their first taste of just how bad egg shortages could get.

    But this outbreak is like nothing we’ve seen before. The strain of avian flu that’s behind this wave is indeed new, and in the U.S. the virus has been circulating for a full year now—far longer than during the last big outbreak. The virus has become “host-adapted,” meaning that it can infect its natural hosts without killing them, so wild waterfowl are ruthlessly efficient at spreading the virus to chickens, Richard Webby, the director of the World Health Organization Collaborating Center for Studies on the Ecology of Influenza in Animals and Birds, told me.

    Many of these wild birds are migratory, and during their long journeys between Canada and South America, they descend on waterways and poop virus from the sky over poultry farms. Chickens stand no chance: The fleshy flaps on their heads may turn blue, their eyes and neck may swell, and, in rare instances, paralysis occurs. An entire poultry flock can be wiped out in 48 hours. Death is swift and vicious.

    Everything about this current wave has aligned to put a serious dent in our egg supply. Most eggs in the United States are hatched in jam-packed industrial egg farms, where transmission is next to impossible to stop, so the go-to move when the flu is detected is to “depopulate,” the preferred industry term for killing all of the birds. Without such a brutal tactic, Bryan Richards, the emerging-disease coordinator at the U.S. Geological Survey, told me, the current wave would be much worse.

    But this strategy also means fewer eggs, at least until new chicks grow into hens. That takes about six months, so there just haven’t been enough hens lately—especially for all the holiday baking people wanted to do, Thompson said. By the end of 2022, U.S. egg inventory was 29 percent lower than it had been at the beginning of the year. The chicken supply, in contrast, is robust because avian flu tends to affect older birds, like egg layers, Thompson said; at six to eight weeks old, the birds we eat, known as broilers, are not as susceptible. Also, she added, wild-bird migration pathways are not as concentrated in the Southeast, where most broiler production happens.

    Egg eaters should be able to return to their normal breakfast routines soon enough. New hens are now replenishing the U.S. egg supply—while waterfowl are wintering in the warmer climes of South America rather than lingering in the U.S. Since the holidays, “the price paid to the farmers for eggs has been decreasing rapidly, and usually, in time, the consumer price follows,” Maro Ibarburu, a business analyst at Iowa State University’s Egg Industry Center, told me.

    Still, going forward, it may be worth rethinking our relationship with eggs. There’s no guarantee that eggs will go back to being one the cheapest and most nutritious foods. When the weather warms, the birds will return, and “it’s highly likely that upon spring migration, we could see yet another wave,” said Richards. Europe, which experienced the H5N1 wave about six months before the Americas did, offers a glimpse of the future. “They went from being in a situation where the virus would come and go to a position where essentially it came and stayed,” Webby told me. If we’re lucky, though, birds will develop natural immunity to the virus, making it harder to spread, or the U.S. could start vaccinating poultry against the flu, which the country has so far been reluctant to do.

    Omelets aside, curbing the spread of avian flu is in our best interest, not just to help prevent $6 egg cartons, but also to avoid a much scarier possibility—the virus spilling over and infecting people. All viruses from the influenza-A family have an avian origin, noted Webby; a chilling example is the H1N1 strain behind the 1918 flu pandemic. Fortunately, though some people have been infected with H5N1, very few cases of human-to-human spread have been documented. But continued transmission, over a long enough period, could change that. The fact that the virus has recently jumped from birds into mammals, such as seals and bears, and has spread among mink, is troubling because that means that it is evolving to infect species that are more closely related to us. “The risk of this particular virus [spreading among humans] as it is now is low, but the consequences are potentially high,” said Webby. “If there is a flu virus that I don’t want to catch, this one would be it.”

    More than anything, the egg shortage is a reminder that the availability of food is not something we can take for granted going forward. Shortages of staple goods seem to be striking with more regularity, not only due to pandemic-related broken supply chains and inflation but also to animal and plant disease. In 2019, swine fever decimated China’s pork supply; the ongoing lettuce shortage, which rapper Cardi B bemoaned earlier this month, is due to both a plant virus and a soil disease. Last September, California citrus growers detected a virus known to reduce crop yields. By creating cozier conditions for some diseases, climate change is expected to raise risk of infection for both animals and plants. And as COVID has illustrated, any situation in which different species are forced into abnormally close quarters with one another is likely to encourage the spread of disease.

    Getting used to intermittent shortages of staple foods such as eggs and lettuce will in all likelihood become a normal part of meal planning, barring some sort of huge shift away from industrial farming and its propensity for fostering disease. These farms are a major reason that these foods are so inexpensive and widely available in the first place; if cheap eggs seemed too good to be true, it’s because they were. Besides, there are always alternatives: May I suggest cream-of-broccoli soup?

    Yasmin Tayag

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  • BEST OF 2022: Melany Of MList: Effective ways to save on food expenses

    BEST OF 2022: Melany Of MList: Effective ways to save on food expenses

    Food has gone up a lot in overall price these last few months, which have hit our wallets hard. But there are ways that you can cut your food expenses down a bit, and here’s how:

    Buy whatever is in season, and avoid “exotic” items. Look for the items that are in season right now. That may have been tricky during the winter months (I mean, how many root vegetables can you really eat in a week?!), but try and stick to what’s in season, buy in bulk, and freeze or preserve the leftovers.

    Make a list… and stick to it. There’s nothing worse than aimlessly wandering around the grocery store, throwing things haphazardly in your cart. Impulse buying will add to your bill, so create a quick list and only buy the things listed there.

    Take advantage of savings. That means checking flyers. Know the prices of foods so you can really decipher between deals and non-deals. And, of course, use your MList Card – we have a whole section of food vendors who offer great discounts on groceries, restaurant purchases, and more.

    Take advantage of technology. flipp is a cool app where it sends you your flyers digitally through a mobile device. You can even put in your grocery list and it will tell you what’s on special and at what grocery stores.

    What can you prepare at home? Sure, that Starbucks coffee is amazing every morning, but those purchases can quickly add up. Invest in an awesome travel mug and start making your brew at home.

    Melany xx

    Married with three kids, MList’s Melany is a jack-of-all-trades. Not only is she a hardworking mom but she’s a serial saver (she loves her MList Card!), she loves to cook, she is very spiritual, and she is very organized. She is also chronically busy. Get her take on what to see, do and buy in Montreal and beyond.

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  • Is The Bitcoin Price Being Suppressed By Central Planners?

    Is The Bitcoin Price Being Suppressed By Central Planners?

    This is an opinion editorial by Seb Bunney, co-founder of Looking Glass Education and author of the Qi of Self-Sovereignty newsletter.

    “History never repeats itself, but it does often rhyme.” — A quote commonly misattributed to Mark Twain.

    Lately, I’ve been pondering whether we are witnessing a rhyming of history.

    For those who have had the chance to dig into our monetary history, you may have encountered a little-known policy called Executive Order 6102. It was a momentous attack on the sovereign individual and the free market. An event that corralled U.S. citizens away from gold, into the U.S. dollar and assets from which the U.S. government benefits.

    Sebastian Bunney

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  • Do We Have Yet To See The Bottom For The Bitcoin Price?

    Do We Have Yet To See The Bottom For The Bitcoin Price?

    This is a transcribed excerpt of the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, they are joined by Dr. Jeff Ross to discuss how current macro events are affecting bitcoin and what to expect from the bitcoin price.

    Watch This Episode On YouTube Or Rumble

    Listen To The Episode Here:

    Bitcoin Magazine

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  • A Geopolitical Picture Of The Bitcoin Price Breakout

    A Geopolitical Picture Of The Bitcoin Price Breakout

    “Fed Watch” is a macro podcast, true to bitcoin’s rebel nature. In each episode, we question mainstream and Bitcoin narratives by examining current events in macro from across the globe, with an emphasis on central banks and currencies.

    Watch This Episode On YouTube Or Rumble

    Listen To The Episode Here:

    Ansel Lindner

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  • Where Will The Bitcoin Price Bottom?

    Where Will The Bitcoin Price Bottom?

    The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine’s premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

    CPI Volatility Doesn’t Disappoint

    In the last article, we highlighted a potential for CPI to surprise to the upside and bring more volatility — and that’s exactly what we got and more. We won’t cover the components that drove the surprise in detail since we already highlighted much of that, but the key takeaway is that Core CPI came in hotter than expected at 6.6% year-over-year and 0.4% month-over-month with shelter (rent, housing components, etc) and medical services as key drivers. This is the fastest rate of change in annual headline Core CPI since 1982. To compare the various components over the last three months, check out this chart

    Sam Rule

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