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alstry (35.88)

Get Ready To Rumble!!!!

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May 23, 2008 – Comments (9)

INFLATION, WHAT F...ING INFLATION WE STUPID AMERICANS????

Our government tells us inflation is below 3% and gas prices fell in April....dat way no COLA increases.

But WTF is this:

KimberlyClark on Friday said it'll raise prices by 6% to 8% on paper producers, as it passes on the increased costs of raw materials and energy. Net selling prices for Huggies diapers, Pull-Ups training pants, Cottonelle and Scott bathroom tissue, Viva towels and Kleenex facial tissue, will increase July 20 to Aug. 31, 2008. The price changes vary by brand and in some cases by package count.

Gas over $4.00

Mommy, why am I crapping all over the floor because we can't afford diapers anymore?  Not only that, we can't afford to drive to WalMart because there is no gas in the car.

Sweetie, it's OK, Uncle Ben tells us there is no inflation and President George says employment is high.....somebody forget to tell Mr. Pres dat you can't live anymore on $10 per hour and buy diapers at the same time.

You think this is funny.  Pretty soon people are going to start stealing just to eat.  You think I am joking?????

Last week I was reading about a realtor was robbed a bank to feed his family.

The problem is our country is not socially prepared for the rising poverty.  I have travelled around the world and witnessed poverty at levels most American's can't fathom.  The difference is that those countries have the social structure and awareness to deal with their conditions.

Most Americans have never had to make the choice between paying the utility bill or buying food....even those totally dependent on the government.   That has been changing over the past year or so......at ever increasing rates where more and more Americans can't afford food clothing and shelter.  The problem has really exacerbated over the past four months.

Now with companies, such as Ford and American Airlines, and practically everyone else for that matter, laying off hundreds of thousands of workers.....things may really head South.

We know that costs continue to rise and wages remain stagnant or are falling......now the question is how do we as a nation become socially and economically prepared for what is coming?

 

 

9 Comments – Post Your Own

#1) On May 23, 2008 at 9:32 AM, Magyc (72.19) wrote:

The psychological shock will be hard.  We are not prepared structurally or emotionally for what is coming, and our prophets are derided as kooks.  The concept of saving and investing in the prosperous years to ride out the bad years is completely lost in this society.

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#2) On May 23, 2008 at 10:08 AM, Tankota (34.20) wrote:

I think the sky is going down about 10%, but I don't think the sky is falling. America has the richest 'poor' people in the world.

Still...I enjoy reading your blog. :)

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#3) On May 23, 2008 at 10:15 AM, alstry (35.88) wrote:

It does for now......money is made by looking forward....not gazing at your feet or staring at the rear view mirror.

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#4) On May 23, 2008 at 10:50 AM, 292972826 wrote:

Good post, the problem is not really the infrastructure but the fact that there is no social awareness.

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#5) On May 23, 2008 at 10:57 AM, joshmcbride (< 20) wrote:

The problem is everyone wants to spend 110% of their income. We want everything now!! It has to be now. Saving and sacrificing is not even in a lot of people's vocabulary.

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#6) On May 23, 2008 at 11:08 AM, alstry (35.88) wrote:

Without a doubt. 

The psychological impact is the part of the equation that few analyze and from my perspective one of the most important.

Sometimes I play a a hold'em poker hand without ever looking at my cards, especially when I am playing my eight year old heads up.

Just by looking at your opponent, you can have a pretty good idea what hand he has.....and than you can mathematically calculate what are the random chances of beating that hand and bet accordingly.

The psychological impact on what is happening to America will be profound.  Right now we are like frogs in water being taken to a boil.  At this point, most still think this is a hot tub.

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#7) On May 23, 2008 at 11:15 AM, joshmcbride (< 20) wrote:

The problem is everyone wants to spend 110% of their income. We want everything now!! It has to be now. Saving and sacrificing is not even in a lot of people's vocabulary.

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#8) On May 23, 2008 at 11:18 AM, joshmcbride (< 20) wrote:

Don't know why that posted twice.

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#9) On May 23, 2008 at 11:47 AM, klemenv (99.70) wrote:

What producers are doing is passing same amount of RELATIVE costs increase to consumer.

E.g. if raw material goes up by 6%, they are trying to increase 6% of retail price.

For example, if retail price is 1$, consisting of:

10c ... raw material

5c ... labour

30c various costs (sales, R&D, CEO, ...)

55c retailer margin, transport, distribution

now, if cost of material goes from 10c to 10,6c, they are trying to increase retail price from $1 to $1.06.

 

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