Tuesday, August 17, 2010

Just my thoughts on Inflation

Inflation a word that had become a normal one in our society. It's Up and Down so much one has trouble keeping up with it! I heard it is down now, however the market doesn't show it. So I wonder, does the Government think it has a true picture? I really wonder that often.
Last week I went to the store to buy some Flour. the price jumped to 5 dollars for a 5 lb bag! Oh boy, I did not buy it. So I did some research to see what was going on.
I found out that the wheat prices have jumped 75% in August. Hey folks this is the begining of that month. Now I know the flour milled is not from this months yield. the other thing that struck me was this cost increase is from Russia's Grain. How can that possibly affect our Grain? I think we have become to world minded and the stock market has too much control on Prices. What to do?
Now that's a good question. What is one Nation to do about this matter. I believe the Greed of money will be the fall of all of the nations. Folks will not be able to buy staples and we will have a lot of sick folks. Could of President control the Market? I do not believe so. My thought is he tried that with the House industry and look what happened. Houses in foreclosures and the lost of retirement funds. It is not good for government to have control of the market.
So how does one control the prices? When I took Economics 101 the main control was Supply and Demand. This is based on a consumer control theory. If the consumer doesn't buy it, the price will go down. Sometimes I think folks forget this simple fix to inflated prices. I know that the cost can be impacted by weather,insects and harvest conditions. However it is still within the consumer power to control the market prices.
Now I read the wheat from Russia makes up a great percentage of the wheat used world wide. this could affect the prices world wide. We have to keep in mind the other countries will profit from this shortage. So as the consumer we have to look at how much is that wheat worth to us and are we willing to pay the inflated store prices?

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