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Close Topic OptionsTrinidad & Tobago Inflation At 10% - Page 12 of 25
JB , price rises and inflation are not the - Page 12 - Trinidad, Tobago / Caribbean - Posted: 27th Jun, 2008 - 2:11pm
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Economy, cost of living, high pricesTrinidad & Tobago Inflation At 10% - Page 12
The US will rebound so will her dollar. The TT dollar rebounds from nothing it just gets more and more worthless with each passing year.
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Inflation Tobago and Trinidad
| QUOTE (LRD) |
| There seems to be a misunderstanding about the cause of inflation here. |
You are saying that because the US economy is faltering it causes the little cafe owner down the road to charge more than double (100%) for something that may have only risen by 10%? That doubles should rise from $3.00 to $5.00 when the doubles makers can afford to absorb that cost by just adding $0.25 rather than $2.00? Is that what you are telling me?
| Rather off topic, but... LRD: The reason your constant submission in reply to Indian Chick was not posted was based on the Topic being about Inflation in Trinidad and not taking the Topic on to the US Dollar. Additionally, if you are going to carry on a Discussion please Register as the Guest facility was meant for simple passing Comments. |
Post Date: 24th Jun, 2008 - 2:08pm / Post ID: #
Trinidad & Tobago Inflation At 10% Caribbean / Tobago & Trinidad
Name: LRD
As long as the TT Dollar is pegged to the US Dollar it is hugely relevant to the topic of inflation in Trinidad.
And yes, the debasement of the US Dollar is causing inflation throughout the world, especially in those nations that try to maintain a peg to it.
So what I am telling you is that as US Dollar (and therefore the TT Dollar) money supply is increased in an attempt stop the US economy collapsing then the money is debased and buys less. Ergo, the TT dollar is also being debased.
Trinidad should break its link from this doomed currency and maintain a tight money supply or back its dollars with commodities.
Page 12 Inflation Tobago and Trinidad
It seems like we are going to have to pay for bread even more. It seems like there will be a 29% increase in the price of flour, some bakers are saying they are going out of business.
| QUOTE |
| National Flour Mills (NFM) yesterday advised bakers that the price of flour may increase by 29 per cent from the beginning of next month. President of the Bakers" Association Leon Phillips disclosed this yesterday. This follows price increases late last year and as recently as March when the price of flour went up by about 40 per cent. Phillips said the association was told about the possible increase during a meeting with NFM officials. Phillips said the bakers asked NFM for a two week grace period before raising prices but NFM gave no assurances. Phillips said the association advised the NFM that it would not be wise to raise prices again in light of recent increases. "We told them they have to do something better than that. Of course, they increased the price of flour by roughly 40 per cent in March and before that late last year," he said. Another member of the association, at yesterday's meeting and asked not to be named, said if prices are raised again, some bakeries may go out of business. "Since the last increases in March, I have lost 20 to 25 per cent of my sales. My production has dropped significantly since the last increases. We are saying how much more can people take? It looks as if soon we will be going out of business." The baker also said NFM was justifying its increase by saying that they have been running at a loss since wheat prices rose last year and that is why it must increase prices. The member said despite the likely increase the bakeries have no other choice but to buy from NFM. "There is nowhere else to purchase from, so regardless of what they do or say we have to buy from them or close down," the member said.... |
Inflation Tobago and Trinidad
LRD, you don't get what I am saying and now I know why, you don't even live here. Economics in Trinidad is not just based on global trends, it is based on what the locals 'feel' like dishing out. The doubles man does not get up one morning, read the paper for the forex rates and then say to himself, "Based on the current US dollar standing let me raise doubles to 'x' price". People have to have a REASON to raise prices, hearing things are getting expensive is not a reason - dumb Trinidadians who buy doubles for $5.00 is the REASON, nothing to do with the US dollar or even if we 'pegged' ourselves with the Euro or Sterling the attitude locally will still be the same. That is called Trinidad Economics 101.
Post Date: 27th Jun, 2008 - 1:18pm / Post ID: #
Trinidad & Tobago Inflation At 10%
JB, I understand what you are saying but that is not inflation, that is price gouging. This presents an opportunity for anyone willing to sell at a lower price provided the profit margins are still decent. If all the sellers are setting their prices the same on purpose then we have price fixing. The solution to this is to stop buying them and make them yourself, if the they are overpriced they will soon drop their prices. Things are worth what people are willing to pay for them. I believe the price of food and energy will continue to go higher for the foreseeable future due to inflation and tight supply.
Trinidad & Tobago Inflation 10% - Page 12
| QUOTE (LRD) |
| JB, I understand what you are saying but that is not inflation, that is price gouging. |
Not when it is done on a mass scale, it contributes to inflation because you will actual see some people raise the price of toilet paper because doubles is more expensive - that is inflation because the person who owns a hardware store is going to buy toilet paper will now want to raise his hardware prices not because lumber is harder to find, but just because he had to pay more for toilet paper the last time he went to the grocery. That is how things work in a Banana Republic.
I understand what you are saying, if things were 'normal' here I would agree with the macro / micro economic concepts which exist among the wealthy and those interested. Laws of supply and demand - let's see, maybe that exists in Trinidad... or maybe it is supply and the demented lost souls who walk over Trinidad buying food at any price, acting like they have money when all they have is credit and lots of time to commit crimes and deals to try and pay it back. However, back to reality and earth... what exists in text books and human rights policies that does not necessarily exist in Trinidad Economics 101.
| QUOTE |
| If all the sellers are setting their prices the same on purpose then we have price fixing. |
Most of them are, however then there are those you have to know where to find them, that are still sane and able to not think profit, profit, profit. Someone say anything about patriotism? Nah, it is about supply and demand right? Rewind, point above - Banana Republic.
Post Date: 27th Jun, 2008 - 2:11pm / Post ID: #
Trinidad & Tobago Inflation 10% Trinidad & Tobago / Caribbean - Page 12
JB , price rises and inflation are not the same thing, I know these days people like to use these terms interchangeably and even in some modern economics books they talk like this. I believe this has been an intentional change in the use of our language in order to divert attention away from the activities of central banks who have the power to rob people of their savings, but that is another topic. The classical definition of inflation is an increase in the supply of money , which is a cause of price increases. Of course there also are other things which can also cause increase in prices.
As far as "the demented lost souls who walk over Trinidad buying food at any price, acting like they have money when all they have is credit" are concerned there are plenty of these in the US and the UK too. They went around buying flat screen TVs, SUVs and real estate because they were given cheap credit(an increase in the money supply). I think these countries will start to look like Banana Republics as they enter a terrible economic era and law and order breaks down.
Prices will always be raised to the price people are willing and able to pay for it with savings or credit. that is the way of the world, it's the same everywhere.
You cannot escape economics 101, the fundamentals will always out in the end, even in Trinidad.
TOPIC: Trinidad & Tobago Inflation At 10%