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NIA Releases Food Price Estimates For A QE2 World: Bread To $23.05, Corn To $11.43, $62.21 For Sugar
On one hand we have the WSJ writing day after day that prices of food and energy products are not "really" rising. On the other hand we have empirical evidence that virtually every staple is already higher in price, or is being served in proportionally smaller portions. One possible arbitration on the issues comes from the NIA, which even if biased, does provide an estimate of where prices of various key perishables will end up in a post-QE2 world. These are as follows: "$11.43 for one ear of corn, $23.05
for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino
Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71
for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a
64 fl oz container of Minute Maid Orange Juice, and $15.50 for a
Hershey's Milk Chocolate 1.55 oz candy bar." Granted these are likely somewhat whimsical, but even if they are partially correct, it would mean the bulk of US society, as we pointed out previously, is in for a long, cold, hungry winter.
From the NIA:
The National Inflation Association today announced the release of its
report about NIA's projections of future U.S. food price increases due
to the massive monetary inflation being created by the Federal Reserve's
$600 billion quantitative easing. This report was written by NIA's
President Gerard Adams, who believes food inflation will take over in
2011 as America's greatest crisis. According to Mr. Adams, making
mortgage payments will soon be the last thing on the minds of all
Americans. We currently have a currency crisis that could soon turn into
hyperinflation and a complete societal collapse.
"For every economic problem the U.S. government tries to solve, it
always creates two or three much larger catastrophes in the process,"
said Adams. "Just like we predicted this past December, the U.S. dollar
index bounced in early 2010 and has been in free-fall ever since.
Bernanke's QE2 will likely accelerate this free-fall into a complete
U.S. dollar rout," warned Adams.NIA projects that at the average
U.S. grocery store it will soon cost $11.43 for one ear of corn, $23.05
for a 24 oz loaf of wheat bread, $62.21 for a 32 oz package of Domino
Granulated Sugar, $24.31 for a 32 fl oz container of soy milk, $77.71
for a 11.30 oz container of Folgers Classic Roast Coffee, $45.71 for a
64 fl oz container of Minute Maid Orange Juice, and $15.50 for a
Hershey's Milk Chocolate 1.55 oz candy bar. NIA also projects that by
the end of this decade, a plain white men's cotton t-shirt at Wal-Mart
will cost $55.57.
The report highlights how despite cotton rising by 54%, corn rising by
29%, soybeans rising by 22%, orange juice rising by 17%, and sugar
rising by 51% during the months of September and October alone, these
huge commodity price increases have yet to make their way into America's
grocery stores because corporations have been reluctant to pass these
price increases along to the consumer. In today's dismal economy, no
retailer wants to be the first to dramatically raise food prices.
However, NIA expects all retailers to soon substantially raise food
prices at the same time, which will ensure that this Holiday shopping
season will be the worst in recorded American history.
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As strongly as I agree with the conclusions of the NIA, they ARE shady characters, who have been documented as participating in pump and dump stock schemes.
That's where you guys lose me - the ENTIRE market is a pump and dump scheme so someone outside of the "establishment" that does what every trading desk seems to do EVRY day but gets in trouble for it somehow has less credibility.
no question that prices are going up, that's obvious to anyone with half a brain.i just question the motives of NIA. Come on, stock suggestions on their home page? really? there are more credible sources out there to prove this same point. just being honest.
Yeah, like Goldman Sachs or Cramer/Liesman, booooo yaaaaaa!!
Agree with you Mozzer but I like their videos. Some people can just see some things for what they are and still like them...like movies that you knew would suck but still enjoyed. Anyone that isn't wary of people promoting stocks on the internet is a clown...but promting knowledge, using data, that is verifiable in their videos I can deal with. The "price estimates" who the hell knows. They aren't telling me to buy food so they can come eat it and I guess if they want their gold to go higher by making people buy it, well I don't know if the Vietnamese, Chinese, Indians, Russians, Germans, Greeks, UAEs, have ever heard of NIA.
Good point Temporalist. I can accept that. Guess i am still upset that they sacked George4tiele. ;)
Here you go, I'm sure you have seen it:
http://www.youtube.com/user/george4title#p/u/4/5zTIcqgVGdI
Would you trust the word of Bernanke or Madoff? I certainly wouldn't. You shouldn't trust the word of ANYONE who is known to have participated in fraud.
Since these guys are fraudsters, their assertions should carry no weight. They could say the sky is blue, but you had better verify that for yourself, because they will lie to you if there is some sort of gain in it for them.
There was another case that came to light in the last week or so where a woman became an investment advisor for an elderly lady. She told her she needed to diversify into gold. This was very good advice. She then proceeded to steal that gold from her and ran off to Nevada. This ruined her credibility, as was used by the MSM as a way to discredit gold buying. You have to separate the two. Buying gold was good, stealing it was bad. Raising awareness about inflation is good, but participating in pump and dump schemes is not.
I was wondering about these guys...I just came across them last week.
Prices can only go that high if the money to pay them is available. It isn't. Therefore the ramp in prices will be to the purchasers similar to what is being experienced by the TV makers now. They will have over paid for inventory with a short shelf life. Prices and quality will begin to fall, though not at similar rates.
That said, the next round through the production structure, the food producers will get hit, and the quantities produced will drop, then prices will start to rise, while the diet of the end user changes, perhaps drastically.
You can't get blood out of a turnip, and J6P can't pay $44 for a loaf of bread.
J6P couldn't pay $4 for a loaf of bread in 1913 either. But by 2010, the banksters made it all possible. Besides, when the end of the empire comes, there will be no more J6Ps. There will be the very rich with tasty bread, and the very poor with none, just like most other times in history. As a Misean, you should recognize the middle-class is an effect of centuries of individuals gaining the freedom to have the ability to own their own production (as well as to decide what constitutes money, and how much should circulate).
Keynesian economics is the art of destroying money, in order to destroy the middle-class. Just like Rome, we will have our dark age. I'll bet it didn't make sense to them, either.
Dr. Marc Faber, "The Federal Reserve Bank took almost 100 years to devalue the dollar 97%, the next 97% drop won't take as long."
We’re not in Zimbabwe yet. My guess is that the turd in the punch bowl will turn out to be $150-$200 per bbl crude in the coming 12 months.
the NIA is a penny stock pump and dump shop. they could give 2 shits about inflation or people. Nice job giving them publicity, Beck too, and it shows ppl do not do their research, the founder or co-founder is that 15 year old kid the SEC prosecuted. Enjoy the spam penny stock picks. End result, their research is bullshit.
If I were Ben I'd raise rates 300-500bp. That way the bonds I buy will be much cheaper
I think this article is laughable.
1) all that credit the Fed is creating is not going to go anywhere anytime soon.
2) in the longer run, the $600 billion is going to be a drop in the bucket compared to the amount of dollar denominated purchasing power that is going to be destroyed, just in the next 5 months or so. The move from 2007 to early 2009 wied out, in round numbers, about a t-t-t-TRIlion dollars in assets. The inevitable resumption of that trend will do more, probably a Lot more.
Jesus of Nazareth couldn't inflate this economy. It is a falling safe. All are encouraged to get out of the way.
Bingo
Well, as long as I'm making $46,764,234.87 a year, I'll be fine.
Don't you wish you were a mailman too?
I notice beer and ciggies were not mentioned. Or were they? I barely read it.
of course the masses are in denial of even a possibility of thngs to come.
a 5 cent candy bar from 45 yrs is 1.00 FRTP at least with decreased quality.
go figure.
dont think theres inflation?
1 buck from 100 yrs ago is 3 cents buying power..the same in a silver dollar is 28-32 bux.
speaks volumes to me.
This is exactly why prices are headed LOWER not higher. The inflation from the past 100 years will DEFLATE. It was created on the back of fake earnings, ponzi scheme after ponzi scheme, and fake wealth. Prices will only be as high as wages allow. Wages are collapsing, unemployment is rising, and the fed is desperately attempting to keep prices up. It will not work. History shows this has happened before and it is happening the same way again. In order to make the case for higher prices you need to show higher earnings and higher demand. It won't happen. This entire situation is deflationary. When higher commodity prices make their way to retail, this will only further the problem because people cannot AFFORD these prices. It will cause the consumer to cut back more, and spend less. Retailers will lose margin and this will reflect in stock market earnings reports causing stock prices and prices in general to plummet.
You sir are an idiot. You cannot run the printing presses 24/7 at full speed and expect prices to go DOWN. Any time you have more dollars chasing the same or less goods the prices necesserily have to go UP. Come on children can understand this!
Tell me, then, how these dollars are going to BUY anything? Money is being "printed" to cover up the already existing deflationary collapse. If it weren't we would already have dow 3000, and houses in the 50k range along with every other purchased good falling through the floor. This is monetary policy printing, nothing more. It does not translate into jobs, growth, wages, and demand. It isn't "different this time", it won't work, and it HAS been done before. Research history. Please do explain how this whole "chasing" is going to work when people cannot AFFORD them. I don't see anybody chasing anything. I see the consumer turning inward, saving, and delevering. Believing the hype about this inflationary crap is the same thing as believing google is going to 2000. It won't happen. Asset prices will collapse. You heard it here. From an "idiot".
It goes into the hands of those who don't need it, who use it to speculate. That is the spark. The accelerant comes from the governments attempts to prevent rioting by starving citizens, ie printing and distributing money to the general population.
There is already enough accelerant sitting fairly quietly in foreign accounts. If there is a panic, where these guys see their dollars buying less of EVERYTHING, they will move to get rid of them, and those dollars will flood back onto US shores.
Yes, it can, and has happened.
Congratulations. You just said absolutely nothing. Inflation must be supported by the consumer. It won't be. It can't be, unless unemployment drops, demand increases, and credit growth goes higher. None of this can happen because we have already HAD 100 years of inflation. What comes AFTER inflation? We haven't seen anything BUT inflation in our lifetimes. The tide will turn because that is what they do. There is no way around it.
"Tell me, then, how these dollars are going to BUY anything? Money is being "printed" to cover up the already existing deflationary collapse. If it weren't we would already have dow 3000, and houses in the 50k range along with every other purchased good falling through the floor."
The dollars won't buy anything and the reason they will keep printing you explain to yourself, to cover up the deflation. They HATE deflation they LOVE inflation/printing which drives up the nominal prices of things because dollars misallocated and are worth less but in this present "stagflation" middle class salaries haven't gone up in years yet education, energy, services, food, commodites have gone up along with unemployment. They can't "control" deflation but can "inflate" so that their wealth, not everyone's wealth - their wealth, increases until they bust the system buying assets along the way and then start all over again already on top. Things that they blew up in price and drove consumers to (70% of the economy) were RE and stocks and those are both deflating because they already attempted and failed to prop them up and are even now trying to keep them inflated buy owning and "protecting" 70-95% of all mortgages (I have heard both numbers but 70% is a lot to me) and POMOing and PPTing the stock market (along with HFTing and Comexing).
The only "banksters" that don't survive collapses are those that placed all of their wealth in people who push paper. Some people never learn:
"Researchers at the Max Planck Institute for Human Cognitive and Brain Sciences in Leipzig, Germany have found a genetic factor that affects our ability to learn from our errors. The scientists demonstrated that men carrying the A1 mutation, which reduces the amount of dopamine D2 receptors in the brain, are less successful at learning to avoid mistakes than men who do not carry this genetic mutation."
http://thefutureofthings.com/news/1094/some-people-never-learn.html
1 buck from 100 yrs ago is 3 cents buying power..the same in a silver dollar is 28-32 bux
Good news for centenarians everywhere
Jesus Christ this is not good. NIA does not do this for the fun of it. Obviously, now, 99 % of the bloggers here are flakes. They were not here in 2009 and the first half on 2010. They a pussies writing to themselves. They have no sense. The comments are shallow and without merit. It is one thing to be smart and act stupid, it is another thing to be totally stupid and act totally stupid. Hopefully, you dumbasses will be the first fuckers I shoot when it all goes to hell.
Shooting dumbasses is always harder with the back of your head missing.
Tyler,
NIA is a couple of pump and dumpers. Please pass over their drivel.
Ok now I'm confused. If TPTB can control 'inflation' but not 'deflation'....who's to say that this 'NIA' outfit has not been set up as a smokescreen for TPTB???
I watched Glenn Beck's episode tonight on George Soros....amazing how one powerful guy has all these 'charitable/humanitarian' entities to cover up/act as a front...for what he really is about doing.
So Tyler & Gang....can we get some more light on the NIA?? I did the google search and our liberal friends at google only send us to their website...where the message is controlled.
Hmmmm
EURO daily chart bearish warnings continue.
US Dollar daily chart bullish warnings continue.
http://stockmarket618.wordpress.com
if that scenario played out, average hourly earnings would be like $200. but let's not mention that because it wouldn't seem so horrific.
my dad became a wealthy man by beginning his carreer for $1.50/hr. it probably means alot of people are just going to have to get used to the new math like generations did before them.
i'm not advocating inflation or anything, i just have disdain for sensationalism.
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