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Whole Foods CEO on Rising Inflation

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    Whole Foods CEO John Mackey on the rise in inflation and its impact on businesses and consumers.

  • Duration 4:01
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Are back with John -- a vote a whole foods is CEO there are on and sisters allude you don't minds on on and on inflation we had.

Alice Rivlin -- saying it's not a problem on not a not remotely equities.

What I say is that if you look I believe that.

Inflation is.

Always a monetary phenomenon.

And then if you increase the money supply.

You're basically debasing the currency and we're increasing the money supply into been up in double digits for the last several years now it's -- Where it would it's what led to that.

Why we had the big.

Build up in home prices and now we have a stock market bubble looks like beginning -- -- -- authority in the middle of it so we're really see what's going on the market as a bubble.

Absolutely we have all look at all this money is being added to the economy are keeping interest rates to virtually zero.

That's not a market rate of interest at all.

And the money's got to go some place and it's not going into homes because that's already busted.

-- -- and it's not going to be saved for cash because you can't get an interest return process.

What is going into the slowed -- to other bigger factors apply I mean a lot of this stuff well you sell LT stuff and even well you don't sell off and on all the stuff but I mean it it it.

It's been going up at the double digit -- your basic commodities.

You know me says polls term serial -- oh right so I mean it's it.

It's gotta be there right I mean how long -- expected to be that.

It's it's gonna continue to be there be a lot higher now if we have a stronger demand in the economy -- -- economy has been weak that's kind of kept pricing back down a little bit that.

As the economy gains steam you're gonna see inflation -- and -- a higher rate in my opinion.

We've got a -- we've got to bring interest rates back up to to market levels we've got a -- quit.

Inflating the money supply distorts economic decisions that you -- -- you've probably heard about what I -- say that's not happening anatomy nineties quite.

Sanguine with the -- you -- politicians.

And -- no politician wants to.

At recessions hurt.

Politicians and they think very short term -- takes a very courageous politician he's willing to weather -- recession.

And let the market correct itself.

And get the the week.

-- -- players eliminated from the marketplace and what price has returned to normal.

So they always -- inflates they always wanna increase the money supplied to avoid the pain that's exactly what happens.

When we had the deep recession in 2000 -- and getting the money supply.

And does that surprise you though they hadn't stopped though the fact that they're gunning at more.

They may so again we're in an election year -- Maybe they'll change it after in 2013 -- take away the punch bowl but by then and we have not lots of reports that happens.

I'm becoming entrepreneurs I tend to be optimistic but -- not very optimistic.

-- and -- solidarity he trillion dollar deficit they have to -- they have to leave you have a lot of good stuff there.

And your customers I'm not saying their their their sticker proof but down.

They're willing to -- a little extra his -- point at which they don't.

And that -- store nearly historical trends is we're spending so much less money on food and American than we ever have before.

To go back a hundred years ago we are spending forty to 50% of our disposable income on food.

Even fifty years ago we're still spending 25%.

Today we're spending about 8%.

-- so the truth of the matter is as people are spending less money on food.

Collectively and individually and all of almost each passing year or so.

That whole food inflation.

Our food cost is largely historically.

Ignorant.

Now that that's their interest and it's a very nice and professionally it.

Dismissing my question which I deeply admire -- John -- it's great seeing you well.

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