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Inflation.......... ?

U.S. dollar is now so diluted, it's going to be hyper inflation like nothing seen in the past.
We'll be raising our products prices 15%+ in a month or two. No way around to avoid price increases.
Stock market going up in this situation is a clear indication how much U.S. dollar is fucked up...

That is not quite true, we have seen it in the past.

It will not be long before we see bills in this range with US presidents on them.

Oddly enough the bills are worth more now they they ever have been.



1681486433825.png
 
That is not quite true, we have seen it in the past.

It will not be long before we see bills in this range with US presidents on them.

Oddly enough the bills are worth more now they they ever have been.



View attachment 8120093
democrats will finally be able to replace everyone on the current bills with their perceived heros.
get ready for Moa, Stalin, and Karl Marx.
 
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Inflation is no longer Americans' No. 1 concern. Nowadays, it's the price of health care that's making Americans sweat.
Health care costs are the top concern among middle-income American households for the first time since 2021, outpacing inflation, according to a national survey from financial service provider Primerica. While more than half of survey respondents said that they remain pessimistic about the economy as a whole, 20% expressed being "slightly more optimistic" about their personal finances compared with just 15% of respondents in the previous quarter.


 
Hmm... Open borders, 7-10M illegal immigrants (including Chinese spys by the 100's) all going on the government dole, with free healthcare.
It's already bankrupting several hospitals in the south. The resulting inflation, assuming America doesn't completely collapse, is going to be historic.
 
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At its latest meeting, the Federal Reserve announced another 25 basis point interest rate increase and put to rest speculation about whether the storm brewing in the U.S. banking sector would cause the central bank to ease up on its monetary policy.



The rate hike brings the federal funds rate to a targeted range of 4.75% to 5%, the highest level in 15 years.

The impact of recent bank failures on the economy and consumer spending will likely determine how the Fed will proceed at future meetings.


"Since our previous FOMC meeting, economic indicators have generally come in stronger than expected, demonstrating greater momentum in economic activity and inflation," Federal Reserve Chair Jerome Powell told reporters at a press conference. "We believe, however, that events in the banking system over the past two weeks are likely to result in tighter credit conditions for households and businesses, which would, in turn, affect economic outcomes."


Until the impact is known, Powell said that the Fed might proceed with a further rate increase to reduce inflation.

"We no longer state that we anticipate that ongoing rate increases will be appropriate to quell inflation," Powell continued.

The Fed's restrictive monetary policy has been cited as a key culprit behind the recent failures of Silicon Valley Bank (SVB) and Signature Bank.

Many in the market had predicted that the Fed would raise rates by 25 basis points to show its resolve to reach a 2% inflation target rate. Any less would have signaled that the Fed was more focused on its role as the banker's bank, according to Dana Grigg, Founder of Camelotta Advisors.


"The Fed is trapped in a quandary between their ability to raise interest rates, given the banking situation, and their credibility at fighting inflation," Grigg said.

 
"Inflation" has become the norm. The United States Government continues to print and hand out free money. Slowly raising interest rates just increase inflation.
FED Reserve knew this. Rather than jump interest and kill off inflation they are now part of the problem.
Mega Corporations are selling less yet charging more. One example:

Volumes rose 1% in PepsiCo’s beverage business, while they declined 3% in its food segment. Overall, volumes were down 2% across all categories, while prices were up 16% overall.
 
McD's is passing inflation down the line to it's customers.


Net sales rose 4% to $5.9 billion. All three of its divisions reported same-store sales growth of 12.6%.
I reported this one around page 2; when the Gov was telling consumers it was ony 5% yet McD's raised prices (at that time) 25%.
 
I reported this one around page 2; when the Gov was telling consumers it was ony 5% yet McD's raised prices (at that time) 25%.
Yep.... Warmed over lies. American's have short memories.
 
Yep.... Warmed over lies. American's have short memories.
now, McD's is making the portions smaller... Anyone look at the size of a 'hot n Spicy'.. damn
you'll know how much a dollar gets you when your sandwich is the size of a 50 cent piece.
Shit's just getting started....... that's the scary part
 
Real life inflation is much higher than "the FED's number".
 
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I am experiencing some "changes", first hand. I have a few projects going and recently have inquired to suppliers in different industries about a specific item.
Here are the replies:
Give me a call and let's see if that is really what you want.
The item you want is 24 weeks out but I have an "equal or better" on the shelf for a little more $$$.
I don't have it here but you pay me and XYZ will drop ship it to you. No mention if XYZ has it on the shelf.
Why in the world would you want that one ?

Since you are not a "regular" I have to put you behind my regulars.

I spent a lifetime in heavy industrial construction. In that time I could spot a bull shitter a mile away. These guy's today are armatures and can be spotted 5 miles away.
The world changed. Improvise, adapt and survive.

 
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It would be good for the country if Kevin McCarthy "reels in" Biden.........
I must "live within my means".. So should the United States of America.
"FREE" Government money is what got us into this mess.
What will be really interesting is if Kevin McCarthy does not reign in spending and the "Conservatives" look for a Speaker
 
I remember reading the quote so went looking for it, I can't remember the book it came from however, thinking Philosophy who needs it, with a distant second being the virtue of selfishness. These things just rattle around in my brain and this that or the other will make it come out.

quote-inflation-is-not-caused-by-the-actions-of-private-citizens-but-by-the-government-by-ayn-rand-82-59-25.jpg


The other day when I was accused of being a dinosaur who's ideas have come and gone, I stole this one from Regan.

Roughly 1:04 for the quote I used.

And if you happen to watch the entire video keep in mind unlike today how civil it was and that there was no advanced of the questions to be asked.

 
I remember reading the quote so went looking for it, I can't remember the book it came from however, thinking Philosophy who needs it, with a distant second being the virtue of selfishness. These things just rattle around in my brain and this that or the other will make it come out.

quote-inflation-is-not-caused-by-the-actions-of-private-citizens-but-by-the-government-by-ayn-rand-82-59-25.jpg


The other day when I was accused of being a dinosaur who's ideas have come and gone, I stole this one from Regan.

Roughly 1:04 for the quote I used.

And if you happen to watch the entire video keep in mind unlike today how civil it was and that there was no advanced of the questions to be asked.


You are gaining "perspective". That is a good thing. Those with no perspective continue to do the same thing over and over, again. They expect a different outcome.
The world has changed, in many ways. Adapt, overcome and Survive.
 
You are gaining "perspective". That is a good thing. Those with no perspective continue to do the same thing over and over, again. They expect a different outcome.
The world has changed, in many ways. Adapt, overcome and Survive.

Yes slowly......

I have told people, don't go looking at this stuff unless you are ready to see things that will really challenge your view on how basically everything relating to people and .gov works. You may not like what you find, and like the meme you can't unsee it.
 
Pure and simple... Inflation is not under control. All the half assed moves the FED Reserve has made are only prolonging the agony of the working middle class. A college educated person can not get a job where it will pay enough for them to afford a house. In most cases, they can not even afford to pay rent (first, last and security deposit is $1,500 +).

The "hope" of the FED =
May 21 (Reuters) - Minneapolis Fed President Neel Kashkari said that he could support holding interest rates steady at the central bank's next meeting in June to give officials more time to assess the effects of past rate increases and the inflation outlook, the Wall Street Journal said on Sunday.

 
Inflation on Main Street, spirling out of control ... Regardless of what DC says:
img.axd


LOT #: 6750

1978 INTERNATIONAL CUB

Tractors - Less than 40 HP

Sold Price: USD $1,320.00

Auction Ended: Wednesday, May 18, 2022 1:41 PM


Transmission Type: Gear DriveDrive: 2WDEngine Horsepower: 15 HPSerial Number: 247381
________________________________________________
Today -

80a4bbac-3ece-4e68-bc29-801c895416e5m.jpg

$5,950
1684762978879.png
 
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″[Employers] may increase their base salaries to say, ‘please stay,’” Lori Wisper, managing director at Willis Towers Watson, told CNBC. “The only way to correct for overpaying on base salary is reductions in force… And part of that reduction is layoffs.”
 
″[Employers] may increase their base salaries to say, ‘please stay,’” Lori Wisper, managing director at Willis Towers Watson, told CNBC. “The only way to correct for overpaying on base salary is reductions in force… And part of that reduction is layoffs.”
I said this would occur, several times. Increases in wages represents an increase in input costs, which are piled onto the other input cost increases that are coming from inflation and increases in interest rates. You give the best workers raises to keep them, get rid of the laggards, and thereby increase the work on those that stay or hire newbs that you have to train. Its a vicious cycle, and there is some of this that is dependent upon what the labor market will bear at the low end of salaries for each specific job. It only stops when the consumer stops paying the increased prices and that reduction in demand flows down through the supply chain. This will occur once the credit is maxed out at a micro and macro level. But then when that demand drops, there is a lag in cost reductions for a business, so when it occurs the quickest way to try to save the company is more layoffs to reduce immediate input costs. But it is the debt that will kill a business - for many it is a constant cost that cannot really be reduced, especially with interest rates going up because there is no option really left to refinance at a lower rate.

Business models will have to change to be able to survive this environment. Unfortunately, this means workers will have to adjust as well as this goes forward.
 
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Inflation on Main Street, spirling out of control ... Regardless of what DC says:
img.axd


LOT #: 6750

1978 INTERNATIONAL CUB

Tractors - Less than 40 HP

Sold Price: USD $1,320.00

Auction Ended: Wednesday, May 18, 2022 1:41 PM


Transmission Type: Gear DriveDrive: 2WDEngine Horsepower: 15 HPSerial Number: 247381
________________________________________________
Today -

80a4bbac-3ece-4e68-bc29-801c895416e5m.jpg

$5,950
View attachment 8146559

Around here these "toy" tractors have really dropped in price. It seems not many people want them anymore. I still use my 9N to mow some places, so it is a bit of a worker, and not at all pretty. I had a chance to buy a very nice 9N for roughly a grand.
 
I said this would occur, several times. Increases in wages represents an increase in input costs, which are piled onto the other input cost increases that are coming from inflation and increases in interest rates. You give the best workers raises to keep them, get rid of the laggards, and thereby increase the work on those that stay or hire newbs that you have to train. Its a vicious cycle, and there is some of this that is dependent upon what the labor market will bear at the low end of salaries for each specific job. It only stops when the consumer stops paying the increased prices and that reduction in demand flows down through the supply chain. This will occur once the credit is maxed out at a micro and macro level. But then when that demand drops, there is a lag in cost reductions for a business, so when it occurs the quickest way to try to save the company is more layoffs to reduce immediate input costs. But it is the debt that will kill a business - for many it is a constant cost that cannot really be reduced, especially with interest rates going up because there is no option really left to refinance at a lower rate.

Business models will have to change to be able to survive this environment. Unfortunately, this means workers will have to adjust as well as this goes forward.
I agree. What has interested me as how slow the recession has progressed. Perhaps it was the moves to make this a "soft landing"... IDK.. Watching the debt ceiling discussions as they unfolded. Perhaps as time progresses, congress will tighten the purse strings on all the blank checks this administration has written.

Related:
 
Around here these "toy" tractors have really dropped in price. It seems not many people want them anymore. I still use my 9N to mow some places, so it is a bit of a worker, and not at all pretty. I had a chance to buy a very nice 9N for roughly a grand.
A lot of the price spreads are regional. Cost of transportation of a cheap toy tractor purchase, in some cases, results in a buyer paying as much to transport as the selling price of the tractor. Freight prices are still on the increase. It's all the little "extra" fees that are being added on. Come carriers are charging $35 to do a weight "verification" on some over length crates. The drop off fees from "residential" to "commercial" have skyrocketed. Old, vintage pickup trucks and parts are the same way. A vintage Arizona truck or parts can't be transported East of the Mississippi due to the shipping cost. No different with food, produce, fuel and building materials.


The Baltic Exchange's main sea freight index, which measures the cost of shipping goods worldwide, fell for the 14th consecutive session on Wednesday, slumping about 13% to an over three-month low of 977 points, pressured by lower demand, notably from the world's largest buyer China. The capesize index, which tracks vessels typically transporting 150,000-tonne cargoes such as iron ore and coal, plunged 24% to 1,218 points, posting its biggest daily decline since February 14th; and the panamax index, which tracks ships that usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, posted its 25th consecutive daily drop, falling 45 points to an over three-month low of 1,045 points. Among smaller vessels, the supramax index shed 29 points, or 3.2%, to its lowest since late February at 881 points. The benchmark index was down 38% for May month, its first monthly decline in four.

 

Macy’s and Costco sound a warning about the economy​


I found the Costco CEO statement somewhat misleading concerning "customers choosing meat's other than beef" as a regular shopper they basically removed prime-grade beef then added in more choice-grade, the choice beef had zero taste or flavor. With the price of beef why pay top dollar for a inferior product?
 

Macy’s and Costco sound a warning about the economy​


I found the Costco CEO statement somewhat misleading concerning "customers choosing meat's other than beef" as a regular shopper they basically removed prime-grade beef then added in more choice-grade, the choice beef had zero taste or flavor. With the price of beef why pay top dollar for a inferior product?
Seeing those "substations" across the board when it comes to food. All the way down to cotton seed oil being substituted for higher grade oil to fry tortilla chips.
A company , Mondeleze, bought up many well known food manufacturer's and immediately started using cheaper ingredients, smaller portions, etc.
That practice caught up to them on May 1 ....

big.chart
 
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The FED has raised interest rates too little and too late.
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The tight labor market and the pressure that has put on wages and inflation has bedeviled the Federal Reserve. The central bank has raised interest rates 10 times since March 22, only to see inflation stay well above the Fed’s 2% target.

 
President and chief executive officer of the Federal Reserve Bank of Cleveland, Loretta Mester said there was no "compelling" reason to wait before implementing another interest rate rise should economic data confirm that more must be done to bring US inflation under control.


 
Inflation marches on.

The U.S. economy continued to crank out jobs in May, with nonfarm payrolls surging more than expected despite multiple headwinds, the Labor Department reported Friday.
Payrolls in the public and private sector increased by 339,000 for the month, better than the 190,000 Dow Jones estimate and marking the 29th straight month of positive job growth.


 
Yes indeed feel good. With Costco did Mr. McNair prorate the cost of that $1.50 hotdog combo to include the required membership cost to get past the gatekeeper to hit the food counter? Again with this mega giant retailer pre-covid they had some decent gutfill, the chicken sandwich melt with provolone and soda was around $3.99 pretty decent, after the lockdown it disappeared from the menu offerings along with other items. That dollar-buck-50 beef dog with drink what part of da'beef week talking about lol? Honestly I don't want to know because truth is aint nothing good getting stuffed into any wiener!