Comment: Thanks...

(See in situ)

In reply to comment: I have appreciated your (see in situ)


As for your question, I don't know. Do you happen to have any charts pricing packs of Starburst back to when you were a kid? (just kidding)

Seriously though, since Starbursts are not a financial asset, and therefore not subject to wild price fluctuations and speculation, and since they are normally consumed fairly soon after purchase, and since there are many, many candy choices to compete with, with that emotional element removed, the price of Starburst have probably stayed pretty stable and about as low as they can be offered at and still produce a profit.

So there is not as much room for the price of Starburst to decline compared with certain financial assets which were bid sky high by frenzied "investors". If packs of Starburst are currently selling for over a dollar, then in order for a pack of Starburst to return to the fifty cent level, the dollar will have to more than double in its purchasing power against packs of Starburst.

The dollar will certainly re-gain SOME of it lost purchasing power during the coming deflation, but it will vary from product to product. In many financial sectors, the dollar will easily double its purchasing power and then some (housing, stocks, metals, oil, and on and on), but those sectors were bid up too high, and when they fall back they will probably overshoot on the downside as well.

But with Starburst it all depends on how serious the contraction is. As dollars become increasingly scarce (relative to today), and discretionary spending dries up, who knows what will happen. I won't say that Starburst will drop back to 50 cents a pack, but neither will I concede that it won't.