Point A: price of bacon's already doubled since last year http://money.cnn.com/2010/08/24/news/bacon_prices/index.htm



Point B:  Higher coffee prices are coming http://money.cnn.com/2010/08/24/news/bacon_prices/index.htm



Point C: cotton's going up, pay more for tighty whiteys and t shirts http://money.cnn.com/2010/09/09/news/economy/cotton_shortage_could_inflate_clothing_prices/index.htm

there is a shortage of coffee due to weather and there is some hording going on in the that had a thread earlier this week. I have no clue about the bacon though.

 

Inflation is at much lower than average levels right now:

inflation rates

Now that ammo prices have started coming down a bit, ARFCOM bacon consumption is going back to normal pre-nobama levels, hence the bacon shortage and global price increases.



Simple ArfEcon 101 here.

Thought so

Third post nails it.  

On a more serious note, it is scary.  Bad things are ahead.  The writing is on the wall.



Any signs of recovery are a false one.  Things will start to look up and bam!  I don't think we've caught even a glimpse of the bottom yet.  



Store what you eat and eat what you store.  Food may have best return on investment over the next few years.



Be prepared.  

weird considering we're monitizing the debt, and printing so much money, I wonder if it's because the banks are parinoid about not having enough liquid assests, or the government's forcing them to keep themselves more liquid.

This, folks, is what we called "stagflation under Carter's attempt to spend us out of a recession.  

We're only starting to see it now because the inflationary spending and the deflationary collapse of the economy had been carefully matched to mask each other.

If we stop inflating now, we can pick up from here pretty well.  Anyone wanna bet on the odds that'll happen?

I'm no expert, but "Government Sources" tell us inflation is below average.

Oops, food and other necessities start doubling in price YoY while personal income decreases, personal credit decrease and the money supply DOUBLES?   But luxury items like bigger, new houses and cars aren't selling?

Surely, that sounds a lot like the Recovery, doesn't it?   No, couldn't be depressionary events causing people to hoard (or the lack of supply creating shortages) necessities and ignore the typical luxuries?

We all know Bacon is the fifth food group:  behind pizza, cheese, milk and beer.  

Prices on relatively unoptional stuff (like bacon) are increasing rapidly, prices on optional stuff (consumer electronics, fashion wear and such) are dropping.  So far the two trends have been mostly canceling each other out.  There's a hell of a profit margin built into much of the consumer crap, but eventually retailers and manufacturers will run out of room for price cutting.

I think the other reason we haven't seen much inflation is that the money is mostly being poured into banks and other large institutions which are taking huge RE losses.  Bank A with a supposed value of $10 billion loses $5 billion when asset values drop and loans sour, poof, that "money" disappears into thin air.  The Feds save the day with $5 billion that they magiked up out of nothing and we're back to square one.  Except for the crushing debt, of course.

What's up with gasoline? Bush sneezes and it jumps 10 cents/gal. Bush takes a dump and it jumps 20 cents/gal. Obammy double cock blocks the entire GOM, Zero sics his jackbooted epa thugs on the coal industry because heavy industry has to be "perfectly safe" from crossed t's and dotted i's, north korea sinks a SK destroyer and develops ICBM capabilities AND iran is months from getting the bomb but the price of gas is rock solid reasonable and even drops.

It's obvious demand has gone down because zero's social justice crusades are strangling the economy but daayum I smell big dollar demoRat manipulation.. George Soros, Warren Buffet, GE, hollywood treehuggers, muslim collaborators?

There are pockets of price inflation in agricultural commodities (wheat, coffee, beef).  Did anyone mention that beef is at all-time highs?

There are pockets of price dis-inflation / deflation in other sectors of the economy (housing).

Oil?  Well, if you're looking at year 2000 nominal price levels (when it was what, $20/bbl) ... you could say oil has inflated, but down from the high of $150 /bbl in 2008.

However, monetary inflation, which generally at some point leads to price inflation, is alive and well, fuck you very much Mr. Bernanke.

No inflation, sure, if you don't need food or energy.  

We're almost guaranteed to see either a nuclear armed Iran and ME arms race or a cratered, heavily bombed Iran within the next few years, that should get things shakin'.

Let's see, soft ags and livestock - UP.

Oil - UP.

Have prescription drugs dropped in price?  

How 'bout college tuition, guys?  With all those college endowments chopped in half (like your own 201K), it doesn't look like 5% annual tuition hikes are going to abate anytime soon.

Property taxes, for all you home owners?  Prices are down (which at some point will impact assessed values), homeowners are defaulting on mortgages, foreclosures up, people losing jobs, all that means lower aggregate property tax revenue.  So unless your city or town is laying off a ton of people, it's likely some of you will be seeing some pretty fucked up property tax bills and fee hikes for some basic services (water, sewer, etc).

Of course, nobody's getting raises in this lousy job environment to cover for these increases.

It's not like you're recouping any of this in your savings accounts or other fixed income investments when the federal reserve has the federal funds rate target to 0.25%.

But hey, everything is just fucking swell.

Some basic math.

Assume a simple U.S. economy in which:

1) The money supply is six dollars ($6).
2) The tangible stuff out there (assets) is a six pack of beer that never skunks

What is each beer worth?  

Mathematically, each beer is worth $6 / 6 = $1 a beer.

Okay, let's change the scenario now:

Let's quadruple the money supply to $24 (from $6 originally).

What is that six-pack of beer worth now?  $24 divided by six beers = $4.

So, we started with $1 / beer.

Now we're at $4 / beer.

Questions for you: Should you be surprised that your beer went from $1 to $4 ... and ... are you really wealthier now that your beer is $4?

I'm a farmer, & all the items you point out are tied to ag production.

There is a world grain shortage, pushing grain prices up, so it costs more to grow hogs.

I use most of all the same inputs used to grow cotton & coffee - fertilizer, pesticides, fuel, etc - the prices of those haven't dropped much, if at all, in our recession.

People gotta eat, so I believe food will continue to become more expensive relative to other goods.

I have said this for a long time. The numbers are fucking rigged, it's that simple. You can say that a car costs the same as it did or has only gone up a small percent- How many Goddamn cars are you going to buy this week? Average person buys ONE every 8-10 years.

How many packages of bacon (Now $7 a pack) are you going to buy in that same time? How many gallons of gas...."Oh but we can't count anything an average might actually BUY or NEED on a daily basis"...."As you can see the price of homes on Lake Como is quite stable or even declining....".....

No doubt it's Bush's fault. Imam Obunghole says our failed violent imperialist policies weren't marxist and appeasing enough. His father had a dream.



btw, I'll take your latter. Better there than here. We already have one crater at ground zero. These fucksticks won't stop until we get a Thomas Jefferson and put a Tripoli on em.

http://www.usvetdsp.com/jan07/jeff_quran.htm

Staple Foods, Engery Items ( oil gas), Basic Need Items will always go up in price during any Depression!

Don't kid your self, D vs. R, this is getting closer to the D side of the Economy then the R. 3 Major factories in my area are closing in this Fiscal year. Funny part is the Mex keep coming north for jobs, But all of these Jobs are going to Mexico or further south.

And add to this that your real wages probably stayed stagnant while the price of that beer increased....

What I see is luxury items and homes in some areas coming down in price BUT the things you really need to live are constantly increasing in price.  

Let me give you a very REAL example.   As a retired military person, my wife and I normally go up to the base commissary about two-hour's drive away once every three months or so.   My wife is a bright lady and she always "analyzes" her receipts after we come back home and unpack.  Note that we usually buy pretty much the same things and quantities.  

My wife informed me recently that we now spend about a $1,000 for the SAME items that we paid $600 for a couple of years back.

So, how much money did the European-owned FED print up during their TARP bailout to spread around to their central bank buddies all over the world after they got too greedy with their derivative instruments?  And what effect is that now starting to have on inflation IF THE TRUTH BE TOLD?

AND YES, PEOPLE.   YOUR MONEY SUPPLY IS OWNED AND OPERATED BY PRIVATE EUROPEAN BANKERS WITH NAMES LIKE ROTHSCHILD and when YOUR congress person asks them where the money went they say "I don't have to tell you that, congressman."   I shit you not.   It's been that way since 1913.   That was a bad, bad year for the goyim.  They were just too ignorant to know it.  It's like taking candy from a baby.

QFT.  You have to watch the inflation numbers.  They are often quoted as "X food and energy", meaning they're not included.  Who gives a flying fuck if the cost of 60" plasma TVs is only going up 1% per year while food, electricity and fuel are going up in the 10's of % per year.  Which do you buy on a daily basis?  Which could you not survive without?

Raw material prices (including food costs) are rising quickly because inflation is setting in.   It hasn't trickled through to Chinese do-dad prices yet because of low consumer demand.    It's tough to move do-dads at existing prices, never mind at a 10% higher price.   But replacement cost on manufactured goods is going up.   It'll pass through when raw material and manufactured good inventories are drawn down.

How come when the price of a gallon of gas doubles people are screaming, "greedy oil companies" but when the price of bacon doubles nobody says, "greedy farmers"? Just wondering....

Stagflation:

Prices up.

Income down.

Economic growth down.

Back to the days of Jimmy Carter.

I bought canned veggies on sale today for .25 cents a can. I can't even can for that price. I bought all they would let me.