prices on my street went up 20% this week

[duanestorey]

Can't say I agree with the buy gold advice given here. If there is an economic meltdown its going to be deflationary not inflationary. The value of gold and silver are just another overvalued(at this time) commodity. This is just another bubble waiting to pop. My belief people investing in gold today will not see it maintain its purchasing power and will certainly lose a good portion of their investment.

You're going to see price deflation in some asset classes (such as housing in the states), but in general you're going to continue to see inflation. How can it be any different? The policies of all fiat regimes is to print money to pay off debt. That, by definition, is inflation of the money supply which will ultimately lead to higher prices. The US dollar is only worth about 2% of what it once was due to the inflationary practices in the US.

So, I disagree. Perhaps gold and silver are slightly overvalued right now, but in general all commodities are going to keep going up in response to the increasing volatility in fiat money. This will be especially apparent if the world ditches the US dollar as the reserve currency (which China is already starting to do).

 

[gouchobob]

You're going to see price deflation in some asset classes (such as housing in the states), but in general you're going to continue to see inflation. How can it be any different? The policies of all fiat regimes is to print money to pay off debt. That, by definition, is inflation of the money supply which will ultimately lead to higher prices. The US dollar is only worth about 2% of what it once was due to the inflationary practices in the US.

So, I disagree. Perhaps gold and silver are slightly overvalued right now, but in general all commodities are going to keep going up in response to the increasing volatility in fiat money. This will be especially apparent if the world ditches the US dollar as the reserve currency (which China is already starting to do).

Good that you mentioned China. The Chinese economy right now is another bubble ready to burst. China is driving most commodity prices today. 65% of the economy is construction of empty apartments and buildings which are not needed, and is not sustainable. Once this becomes more apparent commodities including gold and silver are going to drop severely. Overall inflation if any will be moderate, deflation is also possible. This is going to have a severe impact on countries that have done well during the commodity boom Australia, Canada, and some countries in South America including Argentina. Timing is tough to call, could be as early as this year.

 

[jrockstar80]

As inflation accelerates the exchange rate of foreign currencies,e.g., US$, euro, GB pound, will increase exponentionally. By the end of of 2011, the US$ will be between 5-6.

i would like to know more about why this is. it seems like the current 4-1 exchange rate is holding. if it's expected to go 5-6 pesos to the dollar, i obviously want to talk about getting paid in US$.

 

[Guillo]

The future exchange rate for pesos -> dollars is a total gamble. While the current administration continues, expect it not to go much higher that 4.1
After that.... Its really hard to forecast.

 

[fifs2]

Ugi's famosa pizza a la piedra

eh, sorry no...Ugis was 2.99 when my husband arrived 7 years ago and hit 14.99 last year..so even flour and water base, tomato sauce and cheese are subject to crazy xxx% inflation increases...fyi we know this as the shop is on the corner of our street, not because we buy it...and fyi they reduced their prices to 11.99 late 2010...maybe because 14.99 was a bridge too far even for inflation-savvy Argentineans...

 

[davonz]

the 4 to 1 exchange rate is holding because the central bank of arg has their dirty little fingers in the exchange rate mechanism.. unlike most western countries where it floats and the exchange rate is dictated by supply and demand..

i have lived in arg for 4 years now, but i spend 4 to 6 months in BA, then go for a trip for a couple of months, then back to BA.. and everytime i come back i am surpirsed at how much prices have gone up.. but being there i dont notice it so much as its a steady price creep.. and in the 4 years arg has gone from being around 30% cheaper or more that NZ, AU, US and europe, to now being more expensive for thing in most cases..

i have a few local friends who have told me what they earn, and who complain that they are finding it hard to live on their wages.. they told me their wages have increased from 10 to 17% in the last year but from what i see in prices in supermarket the prices have gone up by 30% or more.. so every year they have less purchasing power.. These friends are not low wage earners, so i should imagine the shop workers, construction workers etc are finding it even harder to live..

 

[Hache]

Ugi's famosa pizza a la piedra

La pizza del pueblo.

 

[DwightB]

There's also this site that tracks prices in numerous places in the world including here. http://bpp.mit.edu/