Inflation: what is it exactly?

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Christophe
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Inflation: what is it exactly?




by Christophe » 14/08/06, 12:33

Inflation, money, these are terms that seem familiar to all of us, and yet, what do we really know? From the first, we often hear about it in the media (without necessarily understanding exactly what it corresponds to), as for the second, its daily use makes us ignore the essential: who creates it, and according to what principles and rules?

https://www.econologie.com/fonctionnement-inflation-1/
https://www.econologie.com/fonctionnement-inflation-2/
https://www.econologie.com/fonctionnement-inflation-3/

Read also the debate on monetary creation: economy-finance/all-know-about-monetary-creation-t2177.html
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by Obamot » 13/02/13, 11:25

Too bad this subject has not taken off, that's what it is to be "ahead" of its time, this notion of inflation had been forgotten since the 70s / 80s, there, despite all the Reassuring words, it is to be feared that we are right in there without daring to say it (I am therefore posting this here).

If the inflation of some, also produces effects to compensate in others, it is therefore that it exists! This is revealed by the pernicious effects of the subprime crisis. Who brought the economies out of theiradjustment variables"(Says an economist from the" movement of the indignant ").

This has led some states to no longer be able to repay their sovereign debt, which has increased interest on arrears and caused inflation in return ... Notwithstanding the fact that American debt is endemic, and that states have largely abused a favorable economic situation by "settling" into a debt system! (But that is not the question, I am not "in the know" enough to take the inventory of the entire cohort of causes or to know all their effects ...)

Christophe wrote:
moinsdewatt wrote:
Obamot wrote: ... Switzerland loses trillions with exchange rates (euro VS dollars, to maintain a Swiss franc not too high ...) and defends itself as it can.
.....


Image the 2011 GDP of Switzerland is 666 billion (Wikipedia), it is hard to see how Switzerland could lose so-called '' thousands of dollars ''.
It's straight out of your imagination.
lessdewatt Obamot obviously speaks of a shortfall ... no absolute value ...

Obviously thousands of billions that's a lot ...

I should have said hundreds of billions, though ... Since GDP is one thing, but it also depends on the duration! The SNB promised (and maintained) that support for the Swiss franc was "unlimited" (except for inflation ...).

Image

Is not this what Europe should have done immediately with the case of Greece, to avoid speculative attacks on the Euro? (What she ended anyway by paying lip service after the long tango between Merkel and Holland : Mrgreen: but for other reasons). How much has this procrastination cost Europe?

More than 50% of the SNB's reserves would be in foreign currencies (more than 67% of GDP, or more than 400 billion ...).

The SNB therefore supports the Swiss franc of sustained fraçon with the printing press with a strong increase since 2007 (and since last year "without limit").

At 60 billion a month on average last year, I let you do the math ...

(In fact the SNB would have "brewed" around 2'100 billion since 2007, but there are also positive effects, last year +4 billion).

This is called "tactical money creation" (or currency swap, it seems).

Image

The practice of swaping would also serve to mask / recycle sovereign debt for certain states (by making it pay to others ...). Look at the petrodollars with the American debt ... That's for the hunk?

So hundreds or thousands of billions? What does it matter and how difficult to say precisely in relation to the duration and seeing that some states do not show a total transparency in this, but it seems to me that there is some truth in this reasoning, not you?

In other words, in finance, these are "Markets against democracy", which produce all these effects. But it's just my humble opinion.
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Re: Inflation: what is it?




by Remundo » 19/10/22, 14:56

An interesting program from a very left-wing media that makes the effort to invite a very right-wing speaker.



the theme is devoted to inflation, in particular the somewhat smoky price increases in mass distribution.
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Re: Inflation: what is it?




by phil59 » 20/10/22, 15:22

I watched the start, 15-20 mins.


There's nothing new in there.

I have some memory lapses, on certain exact figures, but it is the idea, for all that will follow.

Whenever a law, which seems to make sense, in fact, it only does the opposite of what is desirable.

In 2000, I started to be in the IT management of a hypermarket.

In 2000, we were talking about the Galland law.

This law prohibited selling hypermarkets at a loss.

When we say sell at a loss, it is below the purchase price invoiced, which if I am not saying stupidity, was reinforced with the Sapin law. (I have a memory lapse, not sure that it is this law, but this law said, that we are obliged to sell to all, at the same invoice price).

So, very well, a hyper or a small trader, have the same purchase price, invoiced.
The small trader will take his margin, VAT, and will sell.

Where the small trader, to be at 0 margin, will sell for example 1€ the product, the large surface, it, sell some at the same price, is also at 0, but it has all its rear margins.

The small trader, to have a 25% margin on this product at €1, will have to sell it at €1.33, and he will have 33 cts of gross profit, simplifying this.

The hyper him, by selling 1€, he may be left with 40 cts behind the product.

A lot of hyper, at that time, we made a lot of profit, and we started to redistribute money, in the form of tickets, cards.

Then came the Jacob law, which imposed, to keep a minimum of 24% of rear margin, at least, 24% being the average margin of survival of a hypermarket, and there we could put forward part of the margins.

The small retailer is still at €1.33, and the supermarket, it will drop, for example, to 90 cts, the same product, and will have with its rear margins, even more than 30 cts of profit on the same product . And there will be 44 cents on the same product, and the petty tradesman, barely earning his living, almost seems like a crook.

Then the Jacob law was "fired", and supermarkets were allowed to reinject everything into the final price.

The small trader, still at 1.33, and the large area, which can sometimes go down to 70 cts, almost 0 margin. Almost 0, because it can have conditional margins on an amount for the year, and has no right to put back in the foreground, except, if it is sure sure to reach them...

It's a diagram, it's to give an idea.

And there, the endless fight with the suppliers begins, to have the lowest prices, the lowest, and everyone is strangled, especially the small producers...

But all that, in fact, serves above all to keep a 10% margin....

No longer being able to also make small prices in food, in the broad sense of the term, with no more than 30 or 33% discount on a product, the discounts on products such as laundry detergent have increased, and the money has been redistributed differently .... (a part, only).



This is just a small part of a much bigger problem....

I remind you, this is only a diagram, a rough idea of ​​the system.
And it's about 24% gross margin, in general, that it takes to live.
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hmmmmm, hmmmmmmmmmmmmm, hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhmmmmmmmmm, huh, hmmmmmmmmmmmmm.

: Oops: : Cry: :( : Shock:
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Re: Inflation: what is it?




by Obamot » 21/10/22, 03:54

Without wanting to contradict you, for 20 years the business of large distribution has significantly changed its marketing.

And without wanting to go too far, taking products at €1 is not the best example, since for any product put on sale, the administrative burden per product sold is the same... So it will exceed the price even product at €1, and if we include everything, wages, overheads, depreciation, absolutely everything... I believe that all products below €5 are not (very) profitable, certainly they would contribute at best to paying overhead, but not much more.

Current mainstream pricing doctrine. would rather be established”relative to the price customers are willing to pay for the product offered” (according to the CEO of a large Franco-Swiss distribution chain) and no longer in relation to the price difference between the brands... nor a margin calculated in percent in relation to the purchase price.
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Re: Inflation: what is it?




by phil59 » 21/10/22, 10:57

Many products are at 1€, and on an average basket of 100€, the average is well under 5€.

Where I am, there are about 50 different products on the shelf, and in the database there are more than 000 items.

I remember once, that it was necessary to make an invoice to a college for a packet of salt, at the time, in the 15 cts ....

I said give the guy the salt, and have him run away.

A bottle of Ricard, for example, when purchased, costs less than 4€, and with all the taxes, you arrive at 20€... and there is 20 cts of gross margin left at the hypermarket. It's a loss leader, you don't make a profit on it.

What about water at less than 20 cents per 1.5L bottle? It's also a loss leader, and you don't margin on it, and it also requires a lot of heavy stuff handling...

What to say also, when the monthly electricity bill which was 20 to 000€, increases to 25, or even much more, like 000?
Artificially, since it is above all speculation that drives prices up, and not so much the raw material, because otherwise the price would not even double....

So the 24% margin threshold to live for a hyper, will go to how much?

The turnover of the company where I work is around €100, to put it in perspective, not a very, very big one, but not bad at all, much more than the average, and about 000 people (not all full time, far from it!).
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hmmmmm, hmmmmmmmmmmmmm, hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhmmmmmmmmm, huh, hmmmmmmmmmmmmm.

: Oops: : Cry: :( : Shock:
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Re: Inflation: what is it?




by Christophe » 15/11/22, 01:10

ahahah

After Michel Edouard Leclerc, it is the turn of the CEO of Carrefour, Alexandre Bompard, to say that the government is LYING! Inflation of certain food products having reached 40%!!

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Re: Inflation: what is it?




by Obamot » 15/11/22, 18:08

The large distribution (non-hard-discount) is stepping up to the plate, because they will undoubtedly be forced to reduce their indecent margins
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Re: Inflation: what is it?




by Macro » 15/11/22, 18:10

There you dream...

They may be investing a little more in the fight against theft....Indeed, it can make them lower their margins...Hard discounters will have to take security guards and cameras...Because the ceusses who can no longer go to mow at leclerc will meet at home
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The only thing safe in the future. It is that there may chance that it conforms to our expectations ...
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Re: Inflation: what is it?




by phil59 » 15/11/22, 18:20

Obamot wrote:The large distribution (non-hard-discount) is stepping up to the plate, because they will undoubtedly be forced to reduce their indecent margins


Indecent margin? You dream.

About fifteen years ago, when we changed site, to move from almost the center of town, to be at the exit of the city, the mayor asked us to leave part of it in the center of town.

We had done the study, and we planned to leave a small 2000m2.

But above 1000m2 you need permits, which we didn't get, I'll spare you the details.

On 1000m2, we can only keep the "food", in the broad sense, and no bazaar, nor textile...

And the accounts were quickly made, if we wanted to keep the same prices on each side, impossible to do without being negative....
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hmmmmm, hmmmmmmmmmmmmm, hhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhhmmmmmmmmm, huh, hmmmmmmmmmmmmm.

: Oops: : Cry: :( : Shock:

 


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