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alstry (35.42)

Price Inflation Idiots!!!!!

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January 15, 2009 – Comments (10)

WASHINGTON (MarketWatch) -- Inflation at the wholesale level fell in December for the fifth consecutive month, the Labor Department said Thursday.

The producer price index declined 1.9%, driven by a 9.3% drop in energy prices and helped along by a 1.5% decline for food. In November, the PPI fell 2.2%.

OK ....its been 5 CONSECUTIVE months....of falling prices.   Let's count em....1, 2, 3, 4, and 5.

How many months will it take before we ALL agree prices are falling??????

I know, we will have inflation someday.......the problem will be will anyone have any money on that day?????

10 Comments – Post Your Own

#1) On January 15, 2009 at 9:36 AM, alstry (35.42) wrote:

Remember, Alstrynomics is all about pursuing your own independent thinking....don't follow the fools that a constrained by the four walls of their boxed in thinking.....Alstrynomics is the Practical Application of common sense.....don't follow the followers..........

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#2) On January 15, 2009 at 9:43 AM, givmeabreak (29.06) wrote:

Did you see the upwardly revised unemployment numbers this morning?

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#3) On January 15, 2009 at 9:58 AM, alstry (35.42) wrote:

I see upwardly and downwardly revised reported numbers everyday!!!!!

What I do know is that conditions are getting much worse!!!

Prepare....Don't Fear.......

 

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#4) On January 15, 2009 at 10:12 AM, RVAspeculator (29.20) wrote:

Lets count the years of price inflation.... 1,2,3,4,5,6,7,8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30.... etc...2009's might be a bit lower but even in "Deflationary 2008" there was inflation.

 

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#5) On January 15, 2009 at 10:15 AM, whereaminow (20.23) wrote:

You are in LOVE with exclamation points. It's fascinating.

Regards,

David in Qatar

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#6) On January 15, 2009 at 10:31 AM, givmeabreak (29.06) wrote:

Dude, relax. I was pointing out that your previous blogs on rising unemployment were gaining more speed.

Your response was rather defensive. Try taking your own advice: i suggest a mind-eraser or a irish car bomb.

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#7) On January 15, 2009 at 10:36 AM, alstry (35.42) wrote:

giveme,

sorry,  was just closing out my Citi puts...:)

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#8) On January 15, 2009 at 10:45 AM, lquadland10 (< 20) wrote:

Dear Alstry, It is so good to see you so chipper this morning. It just warms my heart on a cold Wed. morning. As to your heading. Price Inflation Idiots!!!!!LOL I just say get rid of the Fed and Treasury because we all know that it is not Inflation like everyone talks about. It is the devaluation of the dollar that is backed by what???????????? Oh yeah THIN AIR!!!!!!!!!!!!!!!!!!!!! As it is written on the dollar In God We Trust but why take the paper dollar which really has no value? Oh that is right the government tells us that it has value.LOL and ROF LMAO Fool on my friend. Lynda.


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#9) On January 15, 2009 at 11:01 AM, givmeabreak (29.06) wrote:

Alstry, here is my response to a blog you posted a couple weeks back asking how people's businesses were fairing:

Gross sales rose 50% in 2008 compared to 07.

Our gross profit margins rose 10% in 2008!

However, we only squeaked out a small net profit.

The simple fact is that costs kept pace with all our gains in sales and margins. Electricity, natural gas (for heat), and rent (took on more sqftage) all went up. Cost of goods stayed about the same.

Payroll went way up, as we added more people to handle the increased sales volume.

This year we are moving back into a smaller area of the building we rent to cut rent by 50%. Our new co-tenant will be taking on the larger area, and picking up 2/3 of all the utilities, so we will see a huge drop it our electric and gas bill.

We will also be CUTTING PAYROLL as a result of our move. We would rather reduce our payroll, even if it means we will have to lower our volume a little.

We are anticipating little to no increases in the cost of goods to sell.

I am troubled with the prospects of having robust sales again (lawn and garden wholesale and retail), due to the fact that people might cut out landscaping in their budgets. This hits me at the retail level, and at the wholesale level. Less demand for landscaping services among my contractors = less demand from me for mulch, soil, seed, and fertilizer. Lack of new construction slowed this market too in the last two years.

As for inventory, we are keeping the bare minimum on hand, and eliminating as much low margin items as possible. If I can't turn it quick, I'm not stocking it.

Inventory costs money, and we don't have lots of it sitting around. Luckily, most of suppliers give 30-90 day terms, so I can at least sell some or all of it before the bill is due.

It is iteresting to note that many vendors, however, are not giving terms AT ALL on merchandise. They are requiring that you pay your previous balance in full AND pay COD for the next delivery. So, unless you are cash rich, you can barely get goods into the store to sell. So, that leaves getting a loan for inventory. This is near impossible at this time, even with 25 years of history with one bank and never missing 1 payment during that entire time...

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#10) On January 15, 2009 at 11:01 AM, alstry (35.42) wrote:

Actually,

The US dollar is backed by a lot!!!!!!!

Mineral rights, Federal Parks, Enriched Uranium to name a few.......

You may want to start reading Karl Denninger at MarketTicker....he seems to be seeing things very clearly these days.

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