| The "cost of living crisis" just continues. 07:31 - Nov 10 with 4588 views | noggin |
In the last 12 months, coffee has risen by 25%, fresh cod by 18%, eggs by 12.5%, bananas 12.8% and the list goes on. (This is in Norway but I presume it's similar in the UK?)
Obviously wages are not rising at anything like those figures, so why are prices continuing to rise so quickly? It must be a huge struggle for many families, lower paid workers and the unemployed. Maybe it's time to return to eating local and seasonal produce, although cod is local here and it's becoming a luxury for most people. |  |
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| The "cost of living crisis" just continues. on 18:28 - Nov 10 with 283 views | lowhouseblue |
| The "cost of living crisis" just continues. on 17:48 - Nov 10 by J2BLUE |
The dollar is one part of it.
This is from Bloomberg and is my definition of it:
What is the debasement trade?
Sell government debt, as well as currencies like the dollar, yen and euro. Buy gold, silver and crypto. In a nutshell, that’s the “debasement trade” that’s become the talk of the town.
It’s essentially a bet that the value of sovereign debt, and the currencies they are denominated in, will be eroded over time as governments avoid tackling their massive debt burdens and even add to them. The term debasement is a reference to when rulers such as King Henry VIII and Nero diluted or debased their gold and silver coins with cheaper metals such as copper.
The worry is that central banks will be pressured to hold down interest rates to offset what their governments owe — and in the process fan inflation by continuing to crank out cash.
https://www.bloomberg.com/news/newsletters/2025-10-14/the-debasement-trade-is-wa |
fair enough. but that strategy works when those assert prices are rising. if they fall even treasuries may be a better bet. we are in a long bull market but it won't go on for ever. at some point asset prices will fall - hopefully they won't all be correlated and some real assets will move against, say, tech stocks. but in 2009 the patterns of correlation didn't work as people expected. other assets will then come into their own. all these things occur in cycles, including macro inflationary cycles, and i'm not convinced that we've entered a new paradigm where assets like gold will continue to rise long-term. but there's an obvious case for seeing real assets such as commodities as a strategic diversifier and a case for being tactically over-weight based on current momentum (what ever forces underlie it). |  |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| The "cost of living crisis" just continues. on 18:39 - Nov 10 with 250 views | J2BLUE |
| The "cost of living crisis" just continues. on 18:28 - Nov 10 by lowhouseblue |
fair enough. but that strategy works when those assert prices are rising. if they fall even treasuries may be a better bet. we are in a long bull market but it won't go on for ever. at some point asset prices will fall - hopefully they won't all be correlated and some real assets will move against, say, tech stocks. but in 2009 the patterns of correlation didn't work as people expected. other assets will then come into their own. all these things occur in cycles, including macro inflationary cycles, and i'm not convinced that we've entered a new paradigm where assets like gold will continue to rise long-term. but there's an obvious case for seeing real assets such as commodities as a strategic diversifier and a case for being tactically over-weight based on current momentum (what ever forces underlie it). |
Well the idea is that as long as the money supply keeps increasing these assets will, over the long term, go up.
It's not a set it and forget it strategy. I monitor it closely and have some goals of what I want to do with the money if and when it gets to certain levels. |  |
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