"Dollar headed for 'multi-year rally' "

[solex]

In fact, all I see is improvement.

OK. This is 2009. Can't imagine what an updated 2013 image looks like....

[SEC agent]

To him we are playing with illusions and monopoly money.  Its his opinion, and he seems earnest in warning us from our folly. 

Actually, no. I'm just making fun of Elwar, and bitcoins are low-hanging fruit.

[pccs]

If the dollar is so strong then why did it cost me $4.39 for a gallon of milk the other day?

They're just playin with the numbers and telling people what they want to hear.

[SEC agent]

If the dollar is so strong then why did it cost me $4.39 for a gallon of the other day?

Because you shop like an idiot?

Seriously, I pay $2.75 for a gallon of milk.

[solex]

Eventus stultorum magister.

Alea iacta est

[pccs]

Because you shop like an idiot?

Largest grocery store within 100 miles .... don't have much choice around here.

[NewLiberty]

If the dollar is so strong then why did it cost me $4.39 for a gallon of the other day?

Because you shop like an idiot?

Seriously, I pay $2.75 for a gallon of milk.

From the US dept of Labor, Bureau of Labor statistics:
Series Id:  APU0000709112
Area:       U.S. city average
Item:       Milk, fresh, whole, fortified, per gal. (3.8 lit)

Year    Jan       Feb       Mar     Apr     May     Jun     Jul     Aug     Sep     Oct     Nov     Dec     Annual
2003   2.686   2.689   2.656   2.674   2.685   2.676   2.708   2.666   2.904   2.905   2.937   2.947   
2004   2.879   2.814   2.786   2.906   3.374   3.574   3.479   3.297   3.149   3.161   3.219   3.233   
2005   3.304   3.176   3.226   3.225   3.207   3.122   3.090   3.136   3.133   3.171   3.211   3.241   
2006   3.197   3.224   3.161   3.123   3.066   3.001   3.083   3.019   3.049   3.064   2.985   3.004   
2007   3.067   3.083   3.072   3.135   3.259   3.427   3.736   3.807   3.841   3.838   3.904   3.870   
2008   3.871   3.869   3.781   3.799   3.760   3.773   3.961   3.886   3.773   3.656   3.734   3.681   
2009   3.575   3.319   3.116   3.084   3.068   3.009   2.992   2.979   2.981   3.046   3.034   3.105   
2010   3.236   3.203   3.188   3.140   3.178   3.297   3.313   3.303   3.278   3.321   3.327   3.318   
2011   3.301   3.357   3.503   3.597   3.653   3.622   3.654   3.713   3.715   3.622   3.557   3.565   
2012   3.583   3.520   3.499   3.474   3.427   3.396   3.428   3.474   3.469   3.524   3.536   3.580   
2013   3.526   3.480   3.431   3.428   3.441               

So is our SEC agent living in the past, or is not living in USA?
Or maybe gets a nice subsidy?

[hashman]

If the dollar is so strong then why did it cost me $4.39 for a gallon of the other day?

Because you shop like an idiot?

Seriously, I pay $2.75 for a gallon of milk.

TRWTF is a grown man drinking milk. 

[pccs]

Ya the good ol days .... the year I was born lol.

Cost of a new home:    $19,300.00
Cost of a first-class stamp:    $0.04
Cost of a gallon of regular gas: $0.30
Cost of a dozen eggs:    $0.55
Cost of a gallon of Milk:    $0.49

Dow-Jones    
High:    767
Low:    646

[sidhujag]

Because you shop like an idiot?

Largest grocery store within 100 miles .... don't have much choice around here.

Then thats a supply problem in your area why would u bring that up in context of an argument here??

[SEC agent]

Because you shop like an idiot?

Largest grocery store within 100 miles .... don't have much choice around here.

Then thats a supply problem in your area why would u bring that up in context of an argument here??

Exactly. 

[SEC agent]

           

So is our SEC agent living in the past, or is not living in USA?
Or maybe gets a nice subsidy?

I live in a major US city surrounded by agricultural areas.  The milk is produced locally, which may be why I pay slightly less than average. PCCS on the other hand, seems to be paying  @ $1 over the average due to his remote location.

[SEC agent]

TRWTF is a grown man drinking milk.  

Wait, what?

Are you actually implying that drinking milk is childish?




edit: I absolutely love the irony of someone with the username "hashman" calling something childish (and using silly internet acronyms like "TRWFT" in the process).  The lack of self awareness is palpable.

[NewLiberty]

Back to the point.

Over the last 10 years, our US Dollar, AKA Federal Reserve Note, buys about 45% less milk.
Using gold (lets be generous and use the highest price from 2003, US$363.58 and the lowest price from 2013, US$1,180 to make it look as bad as possible) if we were using gold to buy our milk instead of the FRN, we would get about 300% more milk.
If we used bitcoin, we'd own the farm instead.
So milk has been getting cheaper, just not cheap enough to keep up with the rate that dollars have been getting cheaper.

So dollars go bad faster than milk. 
Over this time period we did well if we sold dollars for milk, gold and BTC as fast as you get them.
Our SEC agent's wisdom must be based on the buy-low sell-high philosophy, the question is, will US$ ever be high?  Its on a multi-generational downtrend, we may just be looking for the greater fool.

[SEC agent]

You are ignoring all of the factors that come into play with the price of milk, besides purchasing power of the dollar.

Subsidies, government regulations, competition, demand, weather (ie: droughts), feed and equipment costs (which are further driven by different subsidies, regs, weather etc) etc. all drive the price of milk.

It is highly disingenuous to say that the increase in price is solely (or even mostly) due to inflation.

[NewLiberty]

Is your suggestion that the Dollar receives no subsidies?  Or that it is less than what Milk gets?

I've been rereading your tagline.  It is a beautiful sentiment.
"It may be laid down as a primary position, and the basis of our system, that every Citizen who enjoys the protection of a Free Government, owes not only a proportion of his property, but even of his personal services to the defense of it."
-George Washington

I heartily agree with this.  To a Free Government we can devote our property, sweat and blood with pride.  Freedom is an outgrowth of Liberty, which is always precious and fragile.  From misplaced fear, we must resist plunging daggers into Liberty's breast to spill blood on the altar of security.  We would do well to heal those wounds when we are able.



Another brilliant piece of sage advice from our greatest founder:

“Paper money has had the effect in your state that it will ever have, to ruin commerce, oppress the honest, and open the door to every species of fraud and injustice.”
― George Washington

This advice was written in 1787 to Jabez Bowen (1739-1815), a lawyer in Providence, was deputy governor of Rhode Island, and is as true today as ever.

[SEC agent]

No, I am stating that using the price of milk as evidence of runaway inflation is asinine, because it ignores all of the other factors that drive the price.

[NewLiberty]

No, I am stating that using the price of milk as evidence of runaway inflation is asinine, because it ignores all of the other factors that drive the price.

Then our Bureau of Labor Statistics is asinine. Tell it to the BLS.
The CPI has been adjusted all sorts of ways to reduce the visibility of inflation.  It is losing trust as a metric, so this suggestion of how to fix it should be well received by them.  Go for it.

[crumbs]

No, I am stating that using the price of milk as evidence of runaway inflation is asinine, because it ignores all of the other factors that drive the price.

Then our Bureau of Labor Statistics is asinine. Tell it to the BLS.
The CPI has been adjusted all sorts of ways to reduce the visibility of inflation.  It is losing trust as a metric, so this suggestion of how to fix it should be well received by them.  Go for it.

I think you're on the right track.  Price of milk should be adopted as the new metric of national economy.  All them ivory tower chalkboard economists with their GDP this, standard of living that and their fancy learningz!  Got Milk?

[SEC agent]

*words*

The government uses multiple metrics to get a more complete picture of actual inflation.  The CPI is far from the be-all end-all, and certainly is not the only metric used in measuring inflation and influencing policy-making decisions.