Of mice, men and bloody liars
Going through the Sunday Times today, there was a great hullabaloo about the increased price of food and how this will effect inflation etc etc.
It then goes on to say how food has increased 70% over the last 7 years and how wage increases have not kept up. In the same paragraph it states glibly that Unionised workers pay increases have exceeded inflation over the past 7 years.
There are lies and then there are statistics and both are the same.
They bemoan the increase in maize from R800 a ton to R2000 a ton. They forget that in 2001/2002 maize increased from R800 a ton to R2000 a ton and happily came down the next season. Yes there will be a blip, and yes it will impact food prices, but go back to history and see the effect.
At R2000 a ton, farmers will plant maize and hope to take advantage of the increased price. Good old supply and demand.
(This post will be here next year and we can see how good I am).
This brings me to my point.
If the press writes about something long and hard enough, it will become a self fulfilling prophecy. But for a short time.
Remember when the all share index took a dip towards the 20,000 range. Goodness that was less than 8 weeks ago. Dire warnings about how the market was over cooked and correcting itself and how people were going to lose money and inflation/interest rates were going to increase.
The all share index is topping 27,000 now. The soothsayers are silent. (some are still calling for a correction).
You have foolish people and then you have reporters. Oh wait – I repeat myself.
I have yet to see a well researched story on the financial market!!
And I have been looking.
The fact that I can write about stuff like this means I am still able to read a grown up newspaper and comment on mundane stuff like this. As well as been able to discuss this with my daughter who throws some good arguments around for a 22 year old. (Oh yes – it is her birthday tomorrow – HAPPY BIRTHDAY MOUSE!)
I have a medical next week for which I am studying furiously – ie: no copious amounts of captains. Hopefully I will pass and they can say “wow for an old guy who abuses your body the way you do, you will live for the next 12 months (Buses excluded).
Hope you had a fun week and have an even better one this week.
It then goes on to say how food has increased 70% over the last 7 years and how wage increases have not kept up. In the same paragraph it states glibly that Unionised workers pay increases have exceeded inflation over the past 7 years.
There are lies and then there are statistics and both are the same.
They bemoan the increase in maize from R800 a ton to R2000 a ton. They forget that in 2001/2002 maize increased from R800 a ton to R2000 a ton and happily came down the next season. Yes there will be a blip, and yes it will impact food prices, but go back to history and see the effect.
At R2000 a ton, farmers will plant maize and hope to take advantage of the increased price. Good old supply and demand.
(This post will be here next year and we can see how good I am).
This brings me to my point.
If the press writes about something long and hard enough, it will become a self fulfilling prophecy. But for a short time.
Remember when the all share index took a dip towards the 20,000 range. Goodness that was less than 8 weeks ago. Dire warnings about how the market was over cooked and correcting itself and how people were going to lose money and inflation/interest rates were going to increase.
The all share index is topping 27,000 now. The soothsayers are silent. (some are still calling for a correction).
You have foolish people and then you have reporters. Oh wait – I repeat myself.
I have yet to see a well researched story on the financial market!!
And I have been looking.
The fact that I can write about stuff like this means I am still able to read a grown up newspaper and comment on mundane stuff like this. As well as been able to discuss this with my daughter who throws some good arguments around for a 22 year old. (Oh yes – it is her birthday tomorrow – HAPPY BIRTHDAY MOUSE!)
I have a medical next week for which I am studying furiously – ie: no copious amounts of captains. Hopefully I will pass and they can say “wow for an old guy who abuses your body the way you do, you will live for the next 12 months (Buses excluded).
Hope you had a fun week and have an even better one this week.
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