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bruce MN
Advisor

Winger fave economist Kudlow Kudoes lower commodity prices

2 Replies
BA Deere
Honored Advisor

Re: Winger fave economist Kudlow Kudoes lower commodity prices

I want lower commodity prices too...lower Nitrogen lower potash  lower Phosphous  lower diesel lower Sulpher  lower Zinc  Smiley Very Happy

 

The thing is food prices are not counted in figuring inflation so high pork and beef and corn have no bearing on inflation...well according to the fed.

Red Steele
Veteran Advisor

Re: Winger fave economist Kudlow Kudoes lower commodity prices

Nothing like $2 corn to fix those pail calves and hind teat suckers, right? 

 

well, with the inflated Bush/Obama dollar....$3.50 corn is closer to the 90 cent per bushel corn that Shifty is sure never happened....and BA is right....chemicals, rents, fertilizers...etc need to follow suit.

 

lots of good stuff about distorted stats in the article, too....

 

But Yellen is right in pointing out employment problems. We have a 5.4 percent U-3 unemployment rate, the commonly watched measure. But in this cycle, the broader U-6 measure may be closer to the truth at 10.8 percent. U-6 includes part-time people who want full-time work, discouraged people who are sometimes looking for work and people who have left the labor force.

And when you add up U-6 and U-3, you get something like 16 million people out of work. And then the government's welfare assistance programs (including disability insurance, food stamps and Obamacare) pay people not to work, which is a key reason the labor force participation rate is rock bottom, at 62.8 percent, and the employment-to-population ratio is only 59.3 percent. This will not be fixed by the Fed. It's a fiscal issue of tax, regulatory and welfare reform.