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zmas28
05-28-08, 08:44 PM
Interesting video of Jeff Rubin, CIBC economist, that claims that with increased transport prices attendant on high oil prices, globalization is reversing ...
http://www.marketwatch.com/tvradio/bcPlayer.asp
"global cost curves" are changing because its not only about wage arb any more. Its also about transportation costs.
Is this for real?

Contemptuous
05-29-08, 12:17 AM
Interesting video of Jeff Rubin, CIBC economist, that claims that with increased transport prices attendant on high oil prices, globalization is reversing ...
http://www.marketwatch.com/tvradio/bcPlayer.asp
"global cost curves" are changing because its not only about wage arb any more. Its also about transportation costs.
Is this for real?

Great post Zmas28, and I second it. This cost input is for real. Resource constraints can be a powerful input to inflation. If you'd been here a year ago however you would have found this idea encountering "stiff headwinds". A year ago, I was observing that the approaching resource constraints guaranteed that the outcome for the global economy in the next decade, would be "inflation, as far as the eye could see". But this idea was greeted by many people here as somehow sounding "whimsical" or "economically untutored" because it did not encompass the "unalterable truth" that "fiat money governs all commodities markets". This is all in the archives.

The rote response at every turn was that this was a "misconception", because "inflation is always and everywhere a monetary phenomenon". iTulip was conspicuously absent from ever interjecting a clarification, despite the fact that this tired Misesian axiom was reiterated like hoary exclusivist wisdom here constantly. I would read with interest any retrieved old thread which explicitly acknowledges that commodities shortages can cause inflation. They don't exist. I apologize for "polemicizing" your contribution on another thread (over on "Video"), but a year ago neither iTulip editors nor ANY contributors made the smallest mention of this "novel approach" to the sources of emerging inflation.

I applaud your bringing this point up for renewed consideration. BTW, Jeff Rubin is great. Very smart analyst in my view.

metalman
05-29-08, 01:23 AM
Great post Zmas28, and I second it. This cost input is for real. Resource constraints can be a powerful input to inflation. If you'd been here a year ago however you would have found this idea encountering "stiff headwinds". A year ago, I was observing that the approaching resource constraints guaranteed that the outcome for the global economy in the next decade, would be "inflation, as far as the eye could see". But this idea was greeted by many people here as somehow sounding "whimsical" or "economically untutored" because it did not encompass the "unalterable truth" that "fiat money governs all commodities markets". This is all in the archives.

The rote response at every turn was that this was a "misconception", because "inflation is always and everywhere a monetary phenomenon". iTulip was conspicuously absent from ever interjecting a clarification, despite the fact that this tired Misesian axiom was reiterated like hoary exclusivist wisdom here constantly. I would read with interest any retrieved old thread which explicitly acknowledges that commodities shortages can cause inflation. They don't exist. I apologize for "polemicizing" your contribution on another thread (over on "Video"), but a year ago neither iTulip editors nor ANY contributors made the smallest mention of this "novel approach" to the sources of emerging inflation.

I applaud your bringing this point up for renewed consideration. BTW, Jeff Rubin is great. Very smart analyst in my view.

you must be confusing itulip with some other site. this site has been talking about inflation since 2001 w/o wage inflation. here's a thread along those lines...
(http://itulip.com/forums/showthread.php?p=31889#post31889)

Contemptuous
05-29-08, 01:48 AM
you must be confusing itulip with some other site. this site has been talking about inflation since 2001 w/o wage inflation. here's a thread along those lines...

Sorry Metalman - I'm not qualified to read this yet:

377

It would be highly encouraging if perennial iTulip stalwarts (such as yourself) were able to distinguish that the form of "inflation without wage inflation" we are referring to here (inflation springing directly FROM commodities real prices) was NOT one of the forms of inflation iTulip has acknowledged in the past couple of years?

It would be further encouraging to find that when such long proposed ideas (inflation can come from real stuff as well as from money) are finally and formally adopted by iTulip, even the most fleeting acknowledgement to it's earliest and most dogged proponent around here is not then phrased in such curious terms as "aren't we taking our meds today"? Really Metalman, you might try removing those rose colored spectacles every once in a while.

Finster
06-05-08, 08:34 PM
Resource constraints can be a powerful input to inflation.

The government, central banks, Wall Street, and the mainstream media would all seem to be delighted to have us believe that resources constraints actually cause inflation.

Fortunately, this is a contrarian site ...

metalman
06-05-08, 09:03 PM
The government, central banks, Wall Street, and the mainstream media would all seem to be delighted to have us believe that resources constraints actually cause inflation.

Fortunately, this is a contrarian site ...

contarians among contrarians, is the idea here that printing money to pay for constrained resources creates inflation? or oil is the money all along and the paper bonars were an illusion of value that is going bye bye?

Finster
06-06-08, 09:20 AM
contarians among contrarians, is the idea here that printing money to pay for constrained resources creates inflation? or oil is the money all along and the paper bonars were an illusion of value that is going bye bye?

Your two formulations are arguably equivalent, Metal. When you have one commodity whose production is constrained and another commodity whose production is unlimited, the value of the latter commodity is subject to decline in relation to the former ...