Producer Prices over the last 3 months are increasing at an annual rate of 13%. Ben Bernanke says that inflation is well contained. Producers have two choices. They eat the increases and have significantly lower profits. Or, they pass along the increases to consumers and maintain their profits. Which do you think they will choose? CNBC and the Wall Street shills forecast increased corporate profits and strong consumer demand and low inflation. Does it seem like someone is lying?
At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 2.0 percent, and the crude goods index climbed 3.4 percent. On an unadjusted basis, prices for finished goods advanced 5.6 percent for the 12 months ended February 2011, the largest 12-month increase since a 5.9-percent rise in March 2010.” And the stunner: “The index for finished consumer foods surged 3.9 percent in February, the largest increase since a 4.2-percent climb in November 1974. About seventy percent of the February rise can be traced to higher prices for fresh and dry vegetables, which jumped 48.7 percent. Advances in the indexes for meats and dairy products also were major factors in the increase in the finished consumer foods index.”










eugend66 says:
You can`t get blood from a rock. Global economy is FUBAR. Barter will flourish.
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16th March 2011 at 9:57 am
Centerfield says:
I will trade you one roll of TP for a tube of Crest.
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16th March 2011 at 10:35 am
eugend66 says:
I`ll only trade in tobacco finished goods.
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16th March 2011 at 10:38 am
Thinker says:
I work for a number of these companies (all household names)… they’ve already absorbed what they can, in terms of increased costs for raw material and transportation/energy. They’ve tried decreasing package size to mitigate that, but they’ve maxed that out, too. I can honestly say, most of them have tried to minimize the impact of higher prices on the consumer.
Still, they’re going to have to pass along the price increases next. And they know it; I’ve been giving them daily updates on who’s announcing what price increases. They just don’t want to be first.
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16th March 2011 at 11:27 am
TeresaE says:
@Thinker, I just have to point out, making a smaller package while charging the same amount at the cash register is NOT “minimizing” consumer impact. It is the EXACT same as increasing prices. When a box of cereal goes from being five family breakfasts a week, down to two or three, we consumers still PAY MORE.
“… Producers have two choices. They eat the increases and have significantly lower profits. Or, they pass along the increases to consumers and maintain their profits…”
No, there is a third choice, and that is the one they have used for three years. This third choice has helped the government and MSM keep up the bullshit about the “recovery.” This MOST popular third choice is to fire Americans and off shore/import more components.
It has worked very effectively over the past decade to hide the theft of more than seven MILLION good-paying manufacturing jobs. Success!
We have begun to get calls from customers wanting us to drop prices on items quoted last year. Their customers (mainly the Fortune 500, mega-corps) are trying to save their own profit margins by squeezing (again) their suppliers.
Steel alone has increased 100% year-over-year. All our outside processing is going up (heat treating, micro-finish grinding, coatings) are up with constant warnings about more increases to come.
The entire “recovery” has been nothing but the blood of slaughtered American jobs & families, government fiat and accounting gimmicks. Won’t take much for the Ponzi to be revealed and the real depression to begin anew.
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16th March 2011 at 1:39 pm
flash says:
Economies will localize or starve.
Agriculture should the first tier in sustaining any economy .
Feed people and then free them up to create wherever and whatever they can.It will be necessary to dismantle years of property and business controls set up by elected local politicians who basically set the boundaries in the command and control structure which dictates what property owners can and cannot create in local economies e.g. zoning laws
“In this study, Kevin Carson asserts that the existing capitalist economic system is a result of State industrial policy suppressing libertarian alternatives. That status quo, however, is unsustainable according to Carson. Getting government out of the way would unleash market forces to birth a “neotechnic” economy of previously unmatched prosperity. Download: Industrial Policy: New Wine in Old Bottles”
http://c4ss.org/wp-content/uploads/2009/01/industrialpolicycarson0109.pdf
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16th March 2011 at 1:54 pm
flash says:
Worth a mention….just in case.
100 Items to Disappear First
1. Generators (Good ones cost dearly. Gas storage, risky. Noisy…target of thieves; maintenance etc.)
2. Water Filters/Purifiers
3. Portable Toilets
4. Seasoned Firewood. Wood takes about 6 – 12 months to become dried, for home uses.
5. Lamp Oil, Wicks, Lamps (First Choice: Buy CLEAR oil. If scarce, stockpile ANY!)
6. Coleman Fuel. Impossible to stockpile too much.
7. Guns, Ammunition, Pepper Spray, Knives, Clubs, Bats & Slingshots.
8. Hand-can openers, & hand egg beaters, whisks.
9. Honey/Syrups/white, brown sugar
10. Rice – Beans – Wheat
11. Vegetable Oil (for cooking) Without it food burns/must be boiled etc.,)
12. Charcoal, Lighter Fluid (Will become scarce suddenly)
13. Water Containers (Urgent Item to obtain.) Any size. Small: HARD CLEAR PLASTIC ONLY – note – food grade if for drinking.
14. Mini Heater head (Propane) (Without this item, propane won’t heat a room.)
15. Grain Grinder (Non-electric)
16. Propane Cylinders (Urgent: Definite shortages will occur.
17. Survival Guide Book.
18. Mantles: Aladdin, Coleman, etc. (Without this item, longer-term lighting is difficult.)
19. Baby Supplies: Diapers/formula. ointments/aspirin, etc.
20. Washboards, Mop Bucket w/wringer (for Laundry)
21. Cookstoves (Propane, Coleman & Kerosene)
22. Vitamins
23. Propane Cylinder Handle-Holder (Urgent: Small canister use is dangerous without this item)
24. Feminine Hygiene/Haircare/Skin products.
25. Thermal underwear (Tops & Bottoms)
26. Bow saws, axes and hatchets, Wedges (also, honing oil)
27. Aluminum Foil Reg. & Heavy Duty (Great Cooking and Barter Item)
28. Gasoline Containers (Plastic & Metal)
29. Garbage Bags (Impossible To Have Too Many).
30. Toilet Paper, Kleenex, Paper Towels
31. Milk – Powdered & Condensed (Shake Liquid every 3 to 4 months)
32. Garden Seeds (Non-Hybrid) (A MUST)
33. Clothes pins/line/hangers (A MUST)
34. Coleman’s Pump Repair Kit
35. Tuna Fish (in oil)
36. Fire Extinguishers (or..large box of Baking Soda in every room)
37. First aid kits
38. Batteries (all sizes…buy furthest-out for Expiration Dates)
39. Garlic, spices & vinegar, baking supplies
40. Big Dogs (and plenty of dog food)
41. Flour, yeast & salt
42. Matches. {“Strike Anywhere” preferred.) Boxed, wooden matches will go first
43. Writing paper/pads/pencils, solar calculators
44. Insulated ice chests (good for keeping items from freezing in Wintertime.)
45. Workboots, belts, Levis & durable shirts
46. Flashlights/LIGHTSTICKS & torches, “No. 76 Dietz” Lanterns
47. Journals, Diaries & Scrapbooks (jot down ideas, feelings, experience; Historic Times)
48. Garbage cans Plastic (great for storage, water, transporting – if with wheels)
49. Men’s Hygiene: Shampoo, Toothbrush/paste, Mouthwash/floss, nail clippers, etc
50. Cast iron cookware (sturdy, efficient)
51. Fishing supplies/tools
52. Mosquito coils/repellent, sprays/creams
53. Duct Tape
54. Tarps/stakes/twine/nails/rope/spikes
55. Candles
56. Laundry Detergent (liquid)
57. Backpacks, Duffel Bags
58. Garden tools & supplies
59. Scissors, fabrics & sewing supplies
60. Canned Fruits, Veggies, Soups, stews, etc.
61. Bleach (plain, NOT scented: 4 to 6% sodium hypochlorite)
62. Canning supplies, (Jars/lids/wax)
63. Knives & Sharpening tools: files, stones, steel
64. Bicycles…Tires/tubes/pumps/chains, etc
65. Sleeping Bags & blankets/pillows/mats
66. Carbon Monoxide Alarm (battery powered)
67. Board Games, Cards, Dice
68. d-con Rat poison, MOUSE PRUFE II, Roach Killer
69. Mousetraps, Ant traps & cockroach magnets
70. Paper plates/cups/utensils (stock up, folks)
71. Baby wipes, oils, waterless & Antibacterial soap (saves a lot of water)
72. Rain gear, rubberized boots, etc.
73. Shaving supplies (razors & creams, talc, after shave)
74. Hand pumps & siphons (for water and for fuels)
75. Soysauce, vinegar, bullions/gravy/soupbase
76. Reading glasses
77. Chocolate/Cocoa/Tang/Punch (water enhancers)
78. “Survival-in-a-Can”
79. Woolen clothing, scarves/ear-muffs/mittens
80. Boy Scout Handbook, / also Leaders Catalog
81. Roll-on Window Insulation Kit (MANCO)
82. Graham crackers, saltines, pretzels, Trail mix/Jerky
83. Popcorn, Peanut Butter, Nuts
84. Socks, Underwear, T-shirts, etc. (extras)
85. Lumber (all types)
86. Wagons & carts (for transport to and from)
87. Cots & Inflatable mattress’s
88. Gloves: Work/warming/gardening, etc.
89. Lantern Hangers
90. Screen Patches, glue, nails, screws,, nuts & bolts
91. Teas
92. Coffee
93. Cigarettes
94. Wine/Liquors (for bribes, medicinal, etc,)
95. Paraffin wax
96. Glue, nails, nuts, bolts, screws, etc.
97. Chewing gum/candies
98. Atomizers (for cooling/bathing)
99. Hats & cotton neckerchiefs
100. Goats/chickens
From a Sarajevo War Survivor:
Experiencing horrible things that can happen in a war – death of parents and
friends, hunger and malnutrition, endless freezing cold, fear, sniper attacks.
1. Stockpiling helps. but you never no how long trouble will last, so locate
near renewable food sources.
2. Living near a well with a manual pump is like being in Eden.
3. After awhile, even gold can lose its luster. But there is no luxury in war
quite like toilet paper. Its surplus value is greater than gold’s.
4. If you had to go without one utility, lose electricity – it’s the easiest to
do without (unless you’re in a very nice climate with no need for heat.)
5. Canned foods are awesome, especially if their contents are tasty without
heating. One of the best things to stockpile is canned gravy – it makes a lot of
the dry unappetizing things you find to eat in war somewhat edible. Only needs
enough heat to “warm”, not to cook. It’s cheap too, especially if you buy it in
bulk.
6. Bring some books – escapist ones like romance or mysteries become more
valuable as the war continues. Sure, it’s great to have a lot of survival
guides, but you’ll figure most of that out on your own anyway – trust me, you’ll
have a lot of time on your hands.
7. The feeling that you’re human can fade pretty fast. I can’t tell you how many
people I knew who would have traded a much needed meal for just a little bit of
toothpaste, rouge, soap or cologne. Not much point in fighting if you have to
lose your humanity. These things are morale-builders like nothing else.
8. Slow burning candles and matches, matches, matches
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16th March 2011 at 1:55 pm
Anonymous says:
More cut and paste bullshit from Trash.
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16th March 2011 at 2:10 pm
Thinker says:
TeresaE: “I just have to point out, making a smaller package while charging the same amount at the cash register is NOT “minimizing” consumer impact. It is the EXACT same as increasing prices. When a box of cereal goes from being five family breakfasts a week, down to two or three, we consumers still PAY MORE.”
Oh, I know, Teresa. Not saying what they’re doing is right. I’m just saying that they tried to keep the perception of prices remaining the same for as long as they could. In the meantime, their margins have gotten increasingly tight.
You’re right about the government and MSM spinning “the recovery.” But the vast majority of Americans don’t believe it, anyway — they know better.
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16th March 2011 at 2:21 pm
Maddie's Mom says:
Flash, that’s a great list. I’ve been working on accumulating most of those things for several years. It’s a one-stop shopping/acquisition list.
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16th March 2011 at 3:16 pm
Zara says:
Get used to rising food prices. http://www.reuters.com/article/2011/03/15/us-food-summit-prices-idUSTRE72E8UX20110315
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16th March 2011 at 5:02 pm