Thread: Massive Inflation Trigger

In December the bus fares will go up from 25 cent to $1.25 so the average worker assuming 50 trips per month will need to bring in an extra $50 per person. With overhead and more this will probably result in pay increases between $80 and $120.

Of course this will be passed on to the consumer and cause a massive inflation during 2012, probably in the 10-15 % range just from the cumulative effect of these cost increases, after all the inflation in relation to their transportation just went up 400 %.

Any thoughts?

Yep. Inflation is a problem everywhere. Those hardest hit will be the lower class. Fiat currencies are to blame. The cost of an avocado should be no more than it was 20 years ago and it actually is. However the value of currency has declined, not the cost of the goods going up.

So blame the central bankers of the world. They are stealing the world's wealth with their fiat currencies.

A VCR was $700 30 years ago, today it's $25 so inflation is not everywhere.

Originally Posted by Contrail

A VCR was $700 30 years ago, today it's $25 so inflation is not everywhere.

everywhere = location.

Try eating a VCR. Food is a recursive expense and a necessity for life. Fuel also and materials for shelter, etc.

If the cost to produce has remained the same over 30 years then the sale price should be the same after 30 years. If not then the difference is due to devaluation of currency.

A VCR costs much less to produce today than it did 30 years ago and that is reflected in the price drop not necessarily from deflation.

Originally Posted by Contrail

In December the bus fares will go up from 25 cent to $1.25 so the average worker assuming 50 trips per month will need to bring in an extra $50 per person. With overhead and more this will probably result in pay increases between $80 and $120.

Of course this will be passed on to the consumer and cause a massive inflation during 2012, probably in the 10-15 % range just from the cumulative effect of these cost increases, after all the inflation in relation to their transportation just went up 400 %.

Any thoughts?

are you sure about the $1.25 ? , i read somewhere it was going to 50 cents and they would give transfers like in north america , so if you take more than one bus , your even . if you only take one bus then your cost has doubled

Yes, I am sure. There could of course be last minute subsidies and changes, but that's where it stands now. I asked the people inside the diablo rojo, not a person that would never set foot in it and hence have no idea what the effect will be. The poor people know exactly what will happen since they count every dime they have.

Originally Posted by nakedguydb

are you sure about the $1.25 ? , i read somewhere it was going to 50 cents and they would give transfers like in north america , so if you take more than one bus , your even . if you only take one bus then your cost has doubled

Originally Posted by Contrail

Yes, I am sure. There could of course be last minute subsidies and changes, but that's where it stands now. I asked the people inside the diablo rojo, not a person that would never set foot in it and hence have no idea what the effect will be. The poor people know exactly what will happen since they count every dime they have.

well at a $1.25 it will be cheaper for some to take a taxi now

No, it won't. They will probably force the taxis to install meters soon and create a 100-200 % cost increase there as well.

Do you seriously think that someone who paid 25 cent for a bus who is now forced to pay $1.25 will instead pay $2 for a taxi (or even $1.50 for that matter)?

Originally Posted by nakedguydb

well at a $1.25 it will be cheaper for some to take a taxi now

this is from winners website,....Following the submission of project proposals for the Metro Bus by three consortiums, projections show bus riders will have to pay about 65 cents to ride the new public transportation system in Panama City. The increase - from 25 cents now to about 65 cents on the new system - will be absorbed by the government of Panama during at least the first year of implementation of the new system through a special subsidy. The three consortia that participated in the bidding process were Metro Bus Panamá, Grupo Express Panamá S.A. and Transporte Masivo de Panamá. Metro Bus Panamá - comprised of the Panamanian company Grupo Q Panamá and the Brazilian companies Auto Viacao, Kamuro Jipe and Expreso Victoria - presented a proposal for $30 million dollars (which represents only 20% of the total required investment). The Grupo Express Panamá S.A. - comprised of the Colombian companies Express Panamá and Express Futuro - bid $275.4 million, while the Consorcio de Transporte Masivo de Panamá - a Colombian and Panamanian alliance - bid $269.8 million dollars. The bids contemplate an increase in fares to about 65 cents for both "regular" and "transverse" routes (which do not currently exist) as well as $1.00 for routes that use the Northern or Souther corridors. The Minister of the Presidency, Demetrio Papadimitriu, said the government will subsidize the increases in the bus fares during the first 12 months, or until the winning consortium completes delivery of the eventual fleet of 1,500 buses. (La Prensa)

Yes, that is incorrect. They will cost 25 cents until Decemeber, after that $1.25.

Do you think the people on the bus or Don Winner has the better idea?

i guess we will have to wait and see what happens ,. the loser buys a beer LOL

Inflation = expansion of money supply.
Inflation is everywhere thanks to Helicopter Ben.
The price of some things are increasing some are not for now.
Usually companies are absorbing the extra expense until they can not do so any more.
When productivity increases prices also decrease on those items therefore offsetting the effects of the price increases caused by inflation.
So do drop of demand due to financial strains on individuals.
The one solid point of reference is gold.
You wanna see if there is inflation look at the only money there is = Gold.
The rest are only currency.

Originally Posted by Sir Stressalot

Inflation = expansion of money supply.
Inflation is everywhere thanks to Helicopter Ben.
The price of some things are increasing some are not for now.
Usually companies are absorbing the extra expense until they can not do so any more.
When productivity increases prices also decrease on those items therefore offsetting the effects of the price increases caused by inflation.
So do drop of demand due to financial strains on individuals.
The one solid point of reference is gold.
You wanna see if there is inflation look at the only money there is = Gold.
The rest are only currency.

I would add one more thing to your excellent list and that is companies are putting less product in a package but charging more for it. the average shopper does not realize they are getting less chips or ice cream. Stealth inflation! I will be glad when this bad run of luck Obama says we are having ends LOL.

People err when they think the costs going up is inflation. Prices rising is the effect of inflation. Of course the jackasses in Washington blame everything but themselves for the cost of living going up. Arab spring, Libya, Global Farting, you name it except the mad money creation by Bernanke which then is imported by other countries via a peg to the Titanic like dollar. The Bernank MUST print to finance the government or no more food stamps, welfare, Medicare and Medicaid or 99 weeks long UI. Politicians will do nothing until this shitcart tips over and they will have absolutely no choice. The sooner Paname prints their own Balboa and let it float the better. Of course if they do so an invasion may happen again.

Don't fret a new 'JOBS" Program is being announced next month. Can anyone say trillions more in useless stimulus? fiat currency expansion and more debt is the only thing this govt knows. The private sector is being stifled with "boot on the throat" regulation while the population becomes more dependent on the govt to survive. When Capitalism fails by their design look for a hungry population to welcome whatever is offered in it's place. Buy some physical Gold or silver while you still can.

Originally Posted by Contrail

Yes, that is incorrect. They will cost 25 cents until Decemeber, after that $1.25.

Do you think the people on the bus or Don Winner has the better idea?

The people on the bus probably heard "MetroBus" and "1.25$" on the news and assumed it will be 1.25$ for all routes

It was announced that prices will be different for the Corredor routes and the "Non-Corredor" ones.

Originally Posted by Sir Stressalot

. The sooner Paname prints their own Balboa and let it float the better. Of course if they do so an invasion may happen again.

good thought , I wonder if the new Balboa coin that is now in use here , to replace the paper dollar, is part of that ? jusy maybe the goverment here is watching and understands where they are headed being pegged to the USD

You gotta be kidding. Most all governments are either completely oblivious as to the cause of prices going up or are cooperating by printing their own money's to maintain the peg or exchange rate to the USD. You give the Panamanian government too much credit recognizing the source of the problem and preparing :-)
Some states are recognizing the problem and passed legislation for using silver and gold coins as legal tender. Some Middle Eastern countries are doing the same.
There has not been a real Capitalism in the USA a long time, it has been replaced by cronyism where the government decides who succeeds and who fails by giving subsidies and tax breaks and stimulus dollars to winners while regulating and taxing the shit out of those who did not spend enough lobbying and bribing the crooks in power let those be Democrats or Republicans. IMHO it is too late to prevent a collapse so wasting time and energy or electing this or that for change should be used to build caches of food bullets silver and gold instead and to be as self reliant for food, medication and protection as possible. The more you depend on the social safety structures and institutions the further and harder you will fall when they all evaporate. If you prepare and spend all your resources on the things I outlined above the worst that can happen if there is no collapse is that you spend the metals maybe at a loss but once inflation is out the bottle putting it back is extremely hard. You eat the stored food and you shoot the bullets as a hobby. On the other hand if you do nothing and a collapse DOES happen how stupid will you fell during your shortass and miserable life knowing you have been warned but dismissed the warning trusting your and your family's life to politicians and the government.

Originally Posted by Sir Stressalot

You gotta be kidding. Most all governments are either completely oblivious as to the cause of prices going up or are cooperating by printing their own money's to maintain the peg or exchange rate to the USD. You give the Panamanian government too much credit recognizing the source of the problem and preparing :-)
Some states are recognizing the problem and passed legislation for using silver and gold coins as legal tender. Some Middle Eastern countries are doing the same.
There has not been a real Capitalism in the USA a long time, it has been replaced by cronyism where the government decides who succeeds and who fails by giving subsidies and tax breaks and stimulus dollars to winners while regulating and taxing the shit out of those who did not spend enough lobbying and bribing the crooks in power let those be Democrats or Republicans. IMHO it is too late to prevent a collapse so wasting time and energy or electing this or that for change should be used to build caches of food bullets silver and gold instead and to be as self reliant for food, medication and protection as possible. The more you depend on the social safety structures and institutions the further and harder you will fall when they all evaporate. If you prepare and spend all your resources on the things I outlined above the worst that can happen if there is no collapse is that you spend the metals maybe at a loss but once inflation is out the bottle putting it back is extremely hard. You eat the stored food and you shoot the bullets as a hobby. On the other hand if you do nothing and a collapse DOES happen how stupid will you fell during your shortass and miserable life knowing you have been warned but dismissed the warning trusting your and your family's life to politicians and the government.

well I agree with the last part of your statement , but the first part I am not so sure about . do you not think that Martinelli sees that the cost of importing food for his grocery chain has taken off ? he did not get to be a buisness man where he is today by being stupid . Ben and obummer , that a different story .

He is but one man, the inertia of any government can't be so efficiently overcome by one bright leader unless he has a dictatorship going on. I know jack about Martinelli but just by knowing he ownes and runs the supermarket chain I know he has more clue than the Marxist sowing circle called the Obama administration does. I pray he will unpeg from the sinking ship and float to the surface, I pray hard since I decided to move to Panama and will be there in a month. I also hope Osama will he too busy with the shitstorm he created at home than to bother with Panama.

Do you seriously think that someone who paid 25 cent for a bus who is now forced to pay $1.25 will instead pay $2 for a taxi (or even $1.50 for that matter)?

Definitely - because they will find 1 or more people to join them. Result - lots more traffic.

Originally Posted by Sir Stressalot

He is but one man, the inertia of any government can't be so efficiently overcome by one bright leader unless he has a dictatorship going on. I know jack about Martinelli but just by knowing he ownes and runs the supermarket chain I know he has more clue than the Marxist sowing circle called the Obama administration does. I pray he will unpeg from the sinking ship and float to the surface, I pray hard since I decided to move to Panama and will be there in a month. I also hope Osama will he too busy with the shitstorm he created at home than to bother with Panama.

well i would say he is not a dictator , but he steers the ship . there is no question about that . , some think he is power hungry , i think he has run a good business and has had his way as, he is the boss . there might be some back alley dealing , but he has also done lots for the little people in panama . i just hope the next one is also good , as he can not run until one one after next .

Well, it's obvious that everyone on this forum knows what's going on in the US, it's a sinking ship and the Dollar is done for..

A nagging question/thought that has been bouncing around in my head is;

How will Panama fair when massive inflation devastates the already tired US economy?

Is Panama strong enough (growing economy) and independent enough (using the dollar) to go on their own?

I have no idea how it will play, but it will be interesting to watch...

Cheers,
Meck

I am voting with my feet and moving to Panama next month. I want to be in a country that is self sufficient for food, strategically placed to avoid war, scarcely populated enough to hide in if there is a need to hide, immigration friendly and where the majority of the population is poorer than I am. Goes without saying that I am almost all out of any kind of cash with money's in silver and gold in a Switzerland safe deposit box. If all my preparations are not enough let it be but at least I tried.

Originally Posted by Sir Stressalot

I am voting with my feet and moving to Panama next month. I want to be in a country that is self sufficient for food [Panama imports much of its food], strategically placed to avoid war [canal is a major shipping lane and thus a hard target], scarcely populated enough to hide in if there is a need to hide [watchout for those checkpoints every 5km], immigration friendly [6 months as a tourist, yes but all other types, no] and where the majority of the population is poorer than I am [making you even more of a target]. Goes without saying that I am almost all out of any kind of cash with money's in silver and gold in a Switzerland safe deposit box [good luck, hope the swiss don't roll over... *cough* UBS]. If all my preparations are not enough let it be but at least I tried.

Good luck

Originally Posted by Jake

Good luck

yes it imports lots of gringo food , lots of chicken , rice and beans and fruit and veggies are grown here , if the world goes to war then the canel might be a target , dont know who he is going to hide from . what do you mean Jake about the visas ? i have never had a prolbem and i am not on the tourist visa . , yes being richer , and all gringos here are richer than most locals makes us a target , and if you are not able to hold your gold and silver , then you dont know if you really own it . I would not have it in a swiss safety deposit box . but at least he is doing a good thing about leaving and coming here

I don't eat gringo food as is right now.
If there is a war no side would want to see the canal damaged, it is important to everyone.
I am not an American so the Swiss can't roll on me. If there is no food coming in from the USA either because the economy collapses there or because people can't afford imported food, the local supply can be ramped up in a couple of months and the country will be 100% self sufficient. If you can't trust Swiss banks in Switzerland any more, money will have no value anyway.
Again I maybe making mistakes, you can shoot holes in any plan but at least I am doing something. Trusting in any government to do the right thing is the sure sign of an idiot. When I said hiding I meant from the hungry disorganized mob not the police.

Originally Posted by Sir Stressalot

I don't eat gringo food as is right now.
If there is a war no side would want to see the canal damaged, it is important to everyone.
I am not an American so the Swiss can't roll on me. If there is no food coming in from the USA either because the economy collapses there or because people can't afford imported food, the local supply can be ramped up in a couple of months and the country will be 100% self sufficient. If you can't trust Swiss banks in Switzerland any more, money will have no value anyway.
Again I maybe making mistakes, you can shoot holes in any plan but at least I am doing something. Trusting in any government to do the right thing is the sure sign of an idiot. When I said hiding I meant from the hungry disorganized mob not the police.

you were not talking about money in swiss banks , you are talking about PM , i dont care were it is stored , unless you have it in your hand then you dont have it . i see nothing wrong with anything else you said except your choice not to have control of your PM , what if the SHTF and the goverment there grabs it ?

In every war bridges and ports are one of the first to be targeted. Disrupting the enemies ability to transfer ships from one ocean to the other quickly would be first priority. The Panama Canal could be rebuilt by the victor. In war winning is first and what your going to use later doesnt have much immediate importance. Read about WW2 sometime-they werent too worried about using things later.

Heres an inflation trigger for you. News Headlines
The idiots in Washington and the leftist think tanks want to try and replace the private sector with permanent govt jobs. Trillions in new spending further debasing the dollar. How will they pay for all this you ask? well monetizing more treasury bonds of course. In the article they claim it will be paid for by taxing millionaires.... hahahaha..... as a millionaire myself I can promise you every step will be taken not to have reportable income. They think wealthy people are stupid and don't realize when they are being robbed? The Communist, Socialists, and Marxists have come together in our society and govt control of everything including your paycheck will be the end result. Ayn Rand was a Prophet!!!!!!!!