Thread: Costco
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Old 07-17-2012, 10:12 AM   #33
r2473
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Quote:
Originally Posted by Fearsome Forehand View Post
The result of several rounds of "quantitative easing." The dollar is worth less, therefore, it buys less. Get used to it unless there is a significant shift in US fiscal/monetary policy. When the economy finally recovers (someday), we will probably see inflation rates soar.

Not Costco's fault, just the nature of things.
does costco buy everything from foreign suppliers?

if not, then the "value" of the dollar (purchasing power) will primarily be based on inflation (and supply, etc). but not exchange rates.

"inflation rates soar"......perhaps. but balancing inflation and growth is job #1 for the fed (and they are pretty good at it)

edit: i just read up on quantatative easing. didn't know anything about it. still, the only way the dollar would be worth less is through inflation or unfavorable exchange rates when importing goods. neither of which effect the price costco currently charges for "food" (generally speaking).

fee hints at a supply issue in a previous post. i wonder if that is the cause of rising prices, or is costco just deciding that it can raise prices and increase profits (meaning enough people will pay the higher prices). not sure.

http://en.wikipedia.org/wiki/Quantitative_easing

http://inflationdata.com/inflation/i...tinflation.asp

http://www.tradingeconomics.com/unit...tes/gdp-growth
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Last edited by r2473 : 07-17-2012 at 10:35 AM.
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