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<blockquote data-quote="NoMoreTO" data-source="post: 1549673" data-attributes="member: 13996"><p>Q: Have you not wondered why "inflation" only affects some prices but not others?</p><p>A: No - inflation is a generalized phenomenon. Individual markets may vary item to item as the economy and supply chain is very complex and there are many products. The general them is rising prices.</p><p></p><p>The price of chicken is up 15% in the last 2 years.</p><p></p><p>If we measure from the dip, when the inflation really began, we can see that the price has risen considerably more than that.</p><p></p><p>I believe this is a combination of supply chain issues , lower production, <em>and inflation of the money supply.</em></p><p></p><p>The price of chicken in 2017 and 2018 spiked above the current price. We are looking at a single commodity, so I can't explain what happened to Chicken prices at that moment, but there are many things which have reached new highs. Chicken constitutes about $30 of my monthly food budget.</p><p></p><p>Could you explain the pump and dump in more detail. Your idea is that the entire economy is being pumped so that it can then be dumped and retail investors lose? I was speaking of a bubble popping, is that different than a pump and dump? My understanding is a pump and dump is a little more intentional, whereas a bubble is more of a widespread phenomena.</p><p></p><p>I'm very open to prices crashing and us receiving a serious dose of inflation, but I can't agree that we've had deflation in the last 2 years.</p></blockquote><p></p>
[QUOTE="NoMoreTO, post: 1549673, member: 13996"] Q: Have you not wondered why "inflation" only affects some prices but not others? A: No - inflation is a generalized phenomenon. Individual markets may vary item to item as the economy and supply chain is very complex and there are many products. The general them is rising prices. The price of chicken is up 15% in the last 2 years. If we measure from the dip, when the inflation really began, we can see that the price has risen considerably more than that. I believe this is a combination of supply chain issues , lower production, [I]and inflation of the money supply.[/I] The price of chicken in 2017 and 2018 spiked above the current price. We are looking at a single commodity, so I can't explain what happened to Chicken prices at that moment, but there are many things which have reached new highs. Chicken constitutes about $30 of my monthly food budget. Could you explain the pump and dump in more detail. Your idea is that the entire economy is being pumped so that it can then be dumped and retail investors lose? I was speaking of a bubble popping, is that different than a pump and dump? My understanding is a pump and dump is a little more intentional, whereas a bubble is more of a widespread phenomena. I'm very open to prices crashing and us receiving a serious dose of inflation, but I can't agree that we've had deflation in the last 2 years. [/QUOTE]
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