# Inflation?  What inflation?



## Timmy (27 February 2008)

The purpose of this thread is to fight inflation!  It seems the RBA is playing a lone hand in their brave pursuit of higher interest rates.    errrr, well you know what I mean.  OK so this thread is to highlight BARGAINS, where THE PRICE IS RIGHT!  Where we laugh in the face of inflation.  Inflation?  What inflation?

For example, I was in Coles on Sunday, potatoes were 3kg for $1.  Now that's a bargain!

OK - quality, you ask.  I am no potato expert but I bought two bags (6kg) and they seem to be Sebago - good for baking, roasting etc.  No dodgy ones at all, they weren't tiny...just normal potatoes...at 1975 prices (OK, I'm guessing here, but they certainly weren't at a 2008 price).

Now, I get peeved on a thread when I might say hey look at this it's a bargain I bought for $1 ... there is ALWAYS someone who chimes in with "I bought the same thing for 50 cents!"  Don't you hate those people?  WELL - to the one-uppers, this is your thread!  Tell me of the potatoes you bought 3kg for 50 cents, that's what we are here for!  Everything is fair game ... just tell us what and where (so we can go there too) and when (no point telling me it back in 1975, ok?).

More examples - computer parts.  
I love Dick Smith ... BUT ... USB 2.0 card ...$50, give or take ... 
eBay approx. $13! (including postage) ... 
BUT WAIT - there's more, USB 2 card at MSY $10!

Now, man (and woman) does not live on potatoes and USB 2.0 cards alone (I come close, though) ... what else is out there that is a stunning bargain?  

Help fight the good fight ... the war on inflation.  Post early, post often.


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## zt3000 (27 February 2008)

Inflation is impossible to stop using interest rates

Australia is NOT 1 economy its made up of several, namely WA and QLD which are going gangbusters and will keep doing well despite how high rates go and then the rest of the country which will hurt more than what they are now because of rates. The ones getting hurt aren't the one speding and causing problems in the first place. Govt should do more but they lining their pockets with taxes for future hard times. Which leaves what??

I dunno

lol

my


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## explod (27 February 2008)

Well I'm sorry Timmy but I have news for you.

Oil overnight hit US$101 a barrell and our dollar has gone to .93 cents to the $US and rising.    This trend looks like continuing so $1.80 a litre petrol will be at hand soon.

Wheat in the last 12 months has gone from $2.50 a bushel to $12.00 a bushell.  If you can find bread soon you will have to pay a great deal for it.

I could go on but it is making me depressed


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## Timmy (27 February 2008)

Excellent points you raise zt ... and all for 2 cents, a nice non-inflationary amount.

So this thread might be even more useful to our fellow Australians in WA and Qld. who are no doubt paying big dollars for their potatoes.

zt - give us some bargains, I want the next RBA meeting to be focused on the low, low prices uncovered on ASF which clearly shows a negative CPI.


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## Timmy (27 February 2008)

explod ... I appreciate your input but you don't seem to have grasped the gist of this thread...

I will soon start a thread titled "Inflation, we'll all be rooned".  Watch out for it and save up those contributions.

Yes, wheat prices are up.
The people can't afford bread?
Let them eat (potato) cakes!  3kg for $1!!!
explod - watch out for those bargains and report them here - this thread is to fight inflation.


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## explod (27 February 2008)

Timmy said:


> explod ... I appreciate your input but you don't seem to have grasped the gist of this thread...
> 
> I will soon start a thread titled "Inflation, we'll all be rooned".  Watch out for it and save up those contributions.
> 
> ...




Just trying to kindly let you know what you are up against.   Like global warming, to be effective we all have to get out of our cars and start walking.

To fight inflation we need to discover more oil wells, or alternative energy, stop housing over farming land to grow more food, spread the word on birth control to stop the planet squeeze and failing all that more money for the space program for a few new planets.


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## Timmy (27 February 2008)

Thanks explod - my humble contribution to fight inflation this week was to spend less on potatoes.

If the CPI measures price increase ... and I (and hopefully others) spend less to get the same thing (normally 3kg of potatoes is about $4 or so for me) ... then that must have an impact to help lower the CPI, right?  

Also, by buying 6 kg of potatoes I will eat less pasta and rice this week (I hope LOL), I think the economists call this 'substitution' ... taking the economics a bit further, more people buying low-price potatoes, therefore buying less of the higher priced substitutes, has to contribute to pressure for a lower price on the substitutes, right?  My economics is not what it used to be, but I think I am right here.

I have heard the expression "Think globally, act locally".  I hope this thread contributes to that.


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## zt3000 (27 February 2008)

Timmy said:


> Excellent points you raise zt ... and all for 2 cents, a nice non-inflationary amount.
> 
> So this thread might be even more useful to our fellow Australians in WA and Qld. who are no doubt paying big dollars for their potatoes.
> 
> zt - give us some bargains, I want the next RBA meeting to be focused on the low, low prices uncovered on ASF which clearly shows a negative CPI.




We've had reports here that bakers are hiring security guards to watch their butter. Apparently thats gone ballistic too haha.

Bargains ... lol ... that word has been wiped from the dictionary in WA lol

I believe the new term is "relativly expensivly cheap", lol


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## zt3000 (27 February 2008)

explod said:


> Just trying to kindly let you know what you are up against.   Like global warming, to be effective we all have to get out of our cars and start walking.
> 
> To fight inflation we need to discover more oil wells, or alternative energy, stop housing over farming land to grow more food, spread the word on birth control to stop the planet squeeze and failing all that more money for the space program for a few new planets.




Very true explod 

Or we can buy shares in oil and gas companies to offset higher petrol and energy prices,

Buy wheat futures to offset increased food prices

And invest in a pharmaceutical company producing the morning after pill so we profit on birth control measures heheh

See there is always light in the darkness heheh


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## Stormin_Norman (27 February 2008)

australians dont save when times are good. they spend.

i guess at least that doesnt cause deflation like it does in japan.


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## Buddy (27 February 2008)

I know a bargain, or inflation fighter. 

Why not buy some shares in Arc Energy.  Their price has been going down, whilst the price of oil goes up.  Ha, Ha, not. Lol


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## Smurf1976 (27 February 2008)

explod said:


> Well I'm sorry Timmy but I have news for you.
> 
> Oil overnight hit US$101 a barrell and our dollar has gone to .93 cents to the $US and rising.    This trend looks like continuing so $1.80 a litre petrol will be at hand soon.
> 
> ...



As any real estate spruiker would say, "it's good to see prices improving". 

If you want to see proof of inflation, look no further than your nearest house, flat or block of land.

As for things getting cheaper, believe it or not I saw petrol at just 128.9 yesterday. Pity it's back up to 138.9 or more today.


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## 2BAD4U (27 February 2008)

I'll play along Timmy.

My bargin (well sort of) a Logitech Harmony universal remote, man these things are great for a person who loves their gadgets.

Price.......7000 points.

Figured I wasn't going on a holiday soon so I used my credit card points (Westpac) to get one of these things on special.  I think they were normally 18000 points.  These remotes normally cost $130 - $180.

I pay off my credit card each month so I pay no interest, so basically the remote cost me nothing.


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## Bill M (27 February 2008)

Timmy said:


> The purpose of this thread is to fight inflation!
> 
> what else is out there that is a stunning bargain?




Buy your bread at the local Coles after 6 Pm, prices reduced from $4 a loaf to $1 

Buy your Petrol on Tuesdays (Sydney) which is the cheapest day of the week and don't forget your 4c off shop a dockets.

Pay for everything on your credit card and get reward points, then pay your card off in full buy the end of the Month, I make a profit out of my credit card.

At the end of the day there are many things you can do to offset the effects of inflation but you will never stop it! Good Luck.


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## numbercruncher (27 February 2008)

Prey that the AUD keeps getting stronger 

Imagine the pain if it reverted to say year 2000 levels 

And consider ourselfs lucky that the RBA raises interest rates during high Inflation, unlike our American cousins who have huge Inflation and low interest rates destroying their savings !


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## Tinpusher (27 February 2008)

> unlike our American cousins who have huge Inflation and low interest rates destroying their savings !



A shrinking economy and rising inflation is called STAGFLATION (worth a google).


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## numbercruncher (27 February 2008)

Yes and Stagflation in the US from like 1970 to early 80s was only conquered after a severe recession and Wage and price controls, credit controls and Mortgage rates got to something like 20pc.

Least our RBA takes the Inflation monster seriously, but how effective they can be in a Globalised economy is yet to be seen, sailing relatively unchartered waters me thinks.


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## Timmy (28 February 2008)

Thanks 2BAD for the example, this sort of thing wasn't exactly what I had in mind but no matter: one,  it was a good suggestion and; two, I am grateful for any support received on this thread given the penchant for doom and gloom in the other replies LOL!  Bill M, I didn't know about the after 6pm Coles trick thank-you.  Tuesday petrol, yep across that one.  

I am going to keep this thread going in my one-man (well, looks like we are up to three now) war on inflation.  We Aussies have a  tendency to look to the gov'mint to solve our problems and it seems inflation is no different, let the gov'mint (in the guise of the RBA) solve it.  Well, I say no, I say let's take actions to help bring down inflation  Let's not forget what inflation is and how it is measured: basically its a rise in the CPI (not a precise definition, pedants - blaze away).

So, if I can achieve the same thing at a lower cost, then at least I am doing a bit to combat inflation, aren't I?  I cant see myself discovering new oil fields or inventing alternative energy sources.  And I will try not to buy a house on land recently used for farming, and I know I haven't contributed to the growing world population (well, only twice, and that was a few years ago ...) ... but I will do what I can (so far, buying cheap spuds).

And to those talking the problems with stagflation in the US ... I might get to that later, I'm just taking it one country at a time OK fellas?


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