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Peso taking off

Discussion in 'Banking - Investing - Finances' started by Sedona, Jun 24, 2021.

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  1. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Bottle of rum showing a price label of 86 pesos (but not sure when I bought it) is now 122 pesos. I think the word super-inflation is now applicable.
     
    Notmyrealname, Aug 8, 2021
    #31
  2. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    July 2016 was 58. Twice since then has been near 75. Around 2008 was 108 - will we ever see that again? The UK Covid situation v that of the Philippines should have the rate at about 80 (I guess) - but the sovereign debt level of the UK is now very high.

    upload_2021-8-8_13-0-37.png
     
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    Notmyrealname, Aug 8, 2021
    #32
  3. Crystalhead

    Crystalhead ADMIN Admin ★ Forum Moderator ★ ★ Global Mod ★ ★ Moderator ★ ★★ Forum Sponsor ★★ ★ No Ads ★ Highly Rated Poster Showcase Reviewer Veteran Army

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    Well......... I have always applied this rule of thumb> (If you have to ask what something costs .....yah can't afford it.) I buy what I desire and that's the result of hard work and commitment to save while your young, alive and healthy. Any teen should understand capitalism now-a-days!! Work hard and find your passion for a job you can love. Get an awesome mate and save. Do overtime, commit and focus on your capital and savings growing. It will pay out huge in the end. End meaning when you become retiring age.
     
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    Last edited: Aug 9, 2021
    Crystalhead, Aug 8, 2021
    #33
  4. PatO

    PatO DI Forum Luminary Highly Rated Poster Showcase Reviewer Veteran Marines

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    If I may offer a build to these points - DON’T GET A DIVORCE(S)
     
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    PatO, Aug 8, 2021
    #34
  5. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    I remember long necks being 65 or 70 pesos at the sari2x stores when I first got to Dumaguete 10+ years ago. Admittedly, alcohol and smokes aren't the best thing to tie to inflation as the sin tax has sky rocketed the prices in recent years. I have never paid attention to petrol or food prices as they are a necessity but I'm sure they have increased as well.
     
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    Rye83, Aug 8, 2021
    #35
  6. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    Price inflation causes wage inflation, causing more price inflation, more wage inflation .... we all the know the process. The Philippines will probably not have huge wage inflation, for reasons we know, but more starving people.
     
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    Notmyrealname, Aug 9, 2021
    #36
  7. john boy

    john boy DI Forum Luminary Highly Rated Poster

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    With OSW's realising where their future lies and lack of retirees returning home to Philippines, add low tourism, something will have to give, before we have yet another disaster in yet another country! ( We are also experiencing price increases here in UK plus some shortages of commodities )
     
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    john boy, Aug 9, 2021
    #37
  8. Rye83

    Rye83 with pastrami Admin Secured Account Highly Rated Poster SC Connoisseur Veteran Army

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    Inflation is preferable to stagnation or deflation. I think some inflation is probably necessary for growing economies and it keeps people motivated to work. Increasing wages can (and has) lowered the unemployment rate as well since it is a motivator for people to get back into the workforce. Historically, at least in the US, wage increases has not resulted in a rise in inflation rates, so they aren't necessarily linked.

    The US is overdue for a minimum wage increase. They really need to stop letting politicians have control of this. It should be tied to the inflation rate IMO. Other countries have done this and been successful with it.
     
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    Rye83, Aug 9, 2021
    #38
  9. Notmyrealname

    Notmyrealname DI Forum Luminary Highly Rated Poster Showcase Reviewer

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    For sure that deflation is the greater enemy - people simply won't buy certain products if they think those item will be cheaper in the future!

    But I don't see how wages can grow and not affect inflation in the product or service ( see https://www.bloomberg.com/news/arti...-u-s-wages-gives-inflation-debate-a-new-twist "An unexpected jump in U.S. wages has given financial markets a new reason to worry that higher inflation may be here to stay.").

    It is usual for inflation to lead to interest rates rising and few over-indebted economies are going to be able to handle that. But governments caused over-indebtedness due to money printing and pushed people to become speculators rather than investors (including savers) - it there a 'new normal' that is going to sort the problem without the world economy crashing around us? Even governments themselves are going to have a hard time with the level of sovereign debt they now possess.

    Interesting times ahead and probably not too far away.
     
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    Notmyrealname, Aug 9, 2021
    #39
  10. SkipJack

    SkipJack DI Senior Member

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    This is a relatively recent phenomenon. It is a result of lower labor cost overseas. This lower labor cost keeps a downward pressure on wages for jobs that can be off-shored.

    More broadly, Fed Chair Jerome Powell has repeatedly argued that the once-close link between wages and inflation has broken down in recent years.

    https://www.bloomberg.com/news/arti...-u-s-wages-gives-inflation-debate-a-new-twist

    This breakdown is a problem because it results in the poor getting poorer during times of inflation. On the other hand raising wages results in sending more jobs overseas. Somehow our economy needs to figure out how to reduce costs.

    Much of this inflation is in capital assets (Land, homes, stocks, etc.) Healthcare and education costs have run amok as well. Gen Z will have a much harder time raising a family.
     
    SkipJack, Aug 9, 2021
    #40
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