Thursday, May 3, 2012

Le Prix Des Oeufs a Doublé en un An

The above headline reminds me of the time I tried to show off my limited knowledge of the French language by attempting to order scrambled oeufs, in the beautiful city of Luasanne, Switzerland. But that is a story for another day.

Russ Lemley emails:
Hi Robert, 
I hope you are well. I've read your blog for quite a while and enjoy it immensely. Well, I enjoy it as much as one enjoys listening to an astronomer informing me of the incoming asteroid, but you get the point. 
In any event, I found an article in Le Figaro regarding rising egg prices in France, and thought you would find it worthwhile.
It's clear that what is developing is a near global price inflation. The Chinese are printing money, though at rates lower than early last year, the ECB is printing euros and, of course, helicopter Ben is doing likewise in the U.S.. Here is the report from Le Figaro on le prix des oeufs (translated via Google):
 Egg prices more than doubled in a year in France, due to a decline in production due to delays up to standard cages for laying hens, according to the journal of Agreste Ministry of Agriculture, in its edition published today. Since the end of 2011, the price of eggs displayed strong growth. In January 2012, compared to the same period the previous year, prices rose by 106%, 133% in February and March of 119%. This outbreak is the result of the scarcity of egg production. Since 1 January 2012, owners of laying hen farms must comply with new standards of animal welfare, which provide improvements on the size of cages and their development. Soaring prices of eggs used in industry (cakes, pasta, ...) has also affected other European countries...
To the degree egg prices in France are climbing because of more regulations, this shouldn't be considered technically, "price inflation",  The term "price inflation" should be reserved for increases in prices resulting from the printing of money.

Prices climbing because of suffocating regulations should be pointed to as an example of the damaging effects of regulations, but overall price inflation is the result of money printing.

That said, the climb in the price of eggs in France is likely the result of  a combination of the new regulations and ECB money printing. The official price inflation rate in France was last reported at 2.3 percent in March of 2012. The real number is likely higher. From 1958 until 2010, the average inflation rate in France was 4.93 percent.


  1. Came through Charles de Gaulle airport from Egypt last month. Croissants were $6, diet coke $8 US. Des oeufs aren't the only thing going up. When the fallout from the world wide fiat money printing orgy finally comes home to roost, it will be end game!

    As an aside. It occurred to me as I exchanged pictures of dead presidents on green paper, for pictures of dead presidents on brown paper, duly recorded and signed for on computer printed white paper, all of which are totally worthless. That somewhere, the Gods are laughing their asses off at us...

  2. "a combination of the new egulations and ECB money printing". I'm sure you meant "eggulations".

  3. I really hope 'new egulations' wasn't just a typo, that's some quality pun-ing!

  4. Having just finished Hazlitt's Economics in One Lesson (a lesson far superior to my two college economics courses), I understand how insidious and deleterious inflation is.

    My question for Mr. Wenzel (or anyone listening): is it possible that the global central banking cartels will coordinate in such a way that the "order" is preserved and we never actually reach hyperinflation or default? I understand that these are the inevitable consequences of current policies in a world where currencies compete, however, do currencies actually compete? Are the cartels coordinated enough to keep pulling it off?

    All things must come to an end, however analysis like this makes me think they'll be able to "kick the can" quite a while longer:

    [quote]It's clear that what is developing is a near global price inflation. The Chinese are printing money, though at rates lower than early last year, the ECB is printing euros and, of course, helicopter Ben is doing likewise in the U.S..[/quote]