Simon Black On The Growing Phenomenon Of Shadow Inflation: "Value Deflation"

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Wed, 11/10/2010 - 13:44 | 716878 redpill
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Notes from the Field is an excellent newsletter, I read it daily.  Sometimes even BEFORE checking Zero Hedge.

Wed, 11/10/2010 - 14:30 | 717037 Ripped Chunk
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Oh no!

Wed, 11/10/2010 - 21:15 | 718375 Caged Monkey
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Wed, 11/10/2010 - 13:44 | 716879 goldmiddelfinger
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Pattaya, Thailand

The Tigris and Euphrates of massage parlors

Wed, 11/10/2010 - 14:48 | 717100 packman
packman's picture

The Tigris and Euphrates of massage parlors

So along those lines, are you saying due to value deflation we're now in for "Eh, Can't Complain" Endings?



Wed, 11/10/2010 - 15:04 | 717166 Whizbang
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Wed, 11/10/2010 - 15:22 | 717267 VegasBD
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Haaa Hilarious. Was trying to think of a similarly clever response. Nice one.

Wed, 11/10/2010 - 15:27 | 717293 goldsaver
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Too clever. Took me a second there. Good thing too. Tomato soup and keyboards dont mix well.

Wed, 11/10/2010 - 15:17 | 717228 Azannoth
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Wait until hookers start giving you 'half' a blow job, or half penetration than you'll notice a difference

or you start paying the same for a tity fuk as was full penetration or a hand job for the price of a blow job

Wed, 11/10/2010 - 15:37 | 717336 Walter_Sobchak
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before long they'll start taking cigs out of the pack and selling them for the same price, they've done it in germany for years

Wed, 11/10/2010 - 16:29 | 717514 Things that go bump
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My granddaughter tells me there is a shop near where she lives, or at least a clerk or clerks there, who will sell a single cigarette for 75 cents, for an excellent roi and quite illegal, I am sure.  

Wed, 11/10/2010 - 20:49 | 718296 i-dog
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Street vendors selling single cigarettes is very common in developing countries, a stage which the US is bypassing on its rapid fall to 3rd world banana republic status.

And how the fuck can it be illegal if the duty has already been paid on the original full packet? Freaking socialists controlling everything!!

Thu, 11/11/2010 - 01:28 | 718792 Non Passaran
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I believe that is what "generally less bang for the buck" in TFA refers to.

Wed, 11/10/2010 - 13:45 | 716884 Hook Line and S...
Hook Line and Sphincter's picture

I'm experiencing value deflation in from my significant other. Any suggestions?

Wed, 11/10/2010 - 13:53 | 716914 kridkrid
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Find another other.

Wed, 11/10/2010 - 14:17 | 716990 Ripped Chunk
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Shovel, trip to the country.

Wed, 11/10/2010 - 14:27 | 717020 DollarMenu
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Would your SO be able to say the same of you?

Wed, 11/10/2010 - 14:29 | 717033 CPL
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Well if she is over 40, you can trade her in for two 20's.  But in inflationary measures, you'll eventually end up with two 40's again.

Wed, 11/10/2010 - 14:49 | 717102 Lucky Guesst
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If the 40 has proven herself to retain value by taking excellent care of herself, I'd stick with her. Statistcly the 2 20's are probably going to be junk 2 decades from now.

Wed, 11/10/2010 - 15:18 | 717244 johnQpublic
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mines been sufferinf from staggering inflation....wanna trade?

Wed, 11/10/2010 - 13:45 | 716889 rapacious rachel wants to know (not verified)
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just 50 second video from recent Jekyll Island conference

looks like Bombs Away Ben is flipping off Greenspew

22 second mark Bernanke stops flipping off Greenspan and attempts to swallow his nose

at least that's what it looks like to me:

Wed, 11/10/2010 - 13:46 | 716892 PlausibleDenial
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If he is in Pattaya, I am sure he is experiencing more "Bang" for his buck.  I am sure he is getting more services there. :)

Wed, 11/10/2010 - 13:49 | 716902 HarryWanger
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That's been going on in the US for a couple of years now. Cereal boxes contain less, hell, I've even seen 12-packs with 11oz bottles. I remember what a big deal everyone made of this "new packaging" by several manufacturers containing less product for the same or slightly higher price. It'll get worse but the sheeple won't care. They'll just buy bulk corn flakes from the big ugly plastic bins.

Wed, 11/10/2010 - 13:58 | 716927 cossack55
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Who cares when you buy via SNAP cards and let the few remaining workers dumb enough to pay their taxes foot the bill.

Viva la Food Stamps

Wed, 11/10/2010 - 14:28 | 717025 Lucky Guesst
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+ hmmmmm, I plus you a guest appearance on Supermarket Sweep and a brand new pair of running shoes!

Wed, 11/10/2010 - 14:32 | 717041 CPL
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I see you are familar with Canadian game shows and the grand prize of bumper stumpers.


and after three grueling weeks you've won a case of peanut butter, a 20 pound bag of flour and a travel mug

..and no I'm not kidding

Wed, 11/10/2010 - 14:07 | 716958 HarryHaller
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What about that 'half gallon' of ice cream which is actually 1.5 quarts?  I'm sure it's 25% more tasty than what we got in the old packaging - so hey, no worrries!

Wed, 11/10/2010 - 15:29 | 717307 zot23
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And what, pray tell, would you have them do?  Stop eating cornflakes or drinking beer?  Have you?  I doubt the companies asked their consumers what they would prefer, last I checked it was bad form to try and haggle over the price of cornflakes with the cashier at Safeway or try to get gas cheaper by filling up 2 cars instead of one.


Wed, 11/10/2010 - 13:52 | 716912 His Dudeness
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Reporting From: Pattaya, Thailand

Question: What is the most PAINFUL city in the world?



Answer: Bangkok!

Thank you! Try the veal!

Wed, 11/10/2010 - 14:58 | 717137 RichardENixon
RichardENixon's picture

Didn't I see you at the lounge at the  Airport Holiday Inn in Des Moines opening for Two Jacks and a Jill?

Wed, 11/10/2010 - 13:53 | 716913 CapTool
CapTool's picture

Actually look for a book by one of the most evil thinkers ever, its called fortune at the bottom of the pyramid, it explains the portion moves. Its not inflationary but it is predatory

Wed, 11/10/2010 - 13:59 | 716932 Cleanclog
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In essence, biflation again.  

Doubt that WSJ missed it so much as don't want to report it.  Wall Street wants QE and biflation or value deflation isn't a good argument for QE.

Wed, 11/10/2010 - 14:21 | 717005 Samsonov
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You're wrong when you said that the "growing threat of...value something...the WSJ...have missed".  They have not missed it, they practice it.  30% less journalism, same price.

Wed, 11/10/2010 - 14:35 | 717049 Ripped Chunk
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Brought to you by an Aussie national who bribed his way to citizenship and 8 FCC full power TV licenses. (Aliens are allowed to own a network because they do not actually broadcast)

America! What a country. Americans: What imbeciles!

Junk away uninformed ones.

Wed, 11/10/2010 - 19:45 | 718177 SHRAGS
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We are happy for you to have him.  Reminds me of a quote from ex NZ prime Minister Robert "Piggy" Muldoon.

“New Zealanders who emigrate to Australia raise the IQ of both countries.”


Wed, 11/10/2010 - 14:37 | 717063 Lucky Guesst
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Ha-Ha! That is so true. They spend half the program repeating the teaser of what is coming up and they video conference most the guests whose opinions/talking points are being sold as "news".

Wed, 11/10/2010 - 15:01 | 717148 DosZap
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I love it when we make up new words for the SOS.

Less for same, is INFLATION.

Call it whatever you will, if your getting less, and paying the same, they (whoever they is) has inflated your price.

Wed, 11/10/2010 - 13:59 | 716933 Oh regional Indian
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Too few people making too many things for inflated wants and derided needs.

Recipe for disaster and resulting in this value deflation type behaviour.

Anyways, soon enough, people will be glad to get what they can. These are still luxurious times. Will be remembered fondly for their excesses for some time to come.

Belt tightening by demand reduction, not starvation.


Wed, 11/10/2010 - 14:01 | 716937 Hook Line and S...
Hook Line and Sphincter's picture

Again, I must remind you all that inflation is like a really good personal trainer.

Soy - you shouldn't be eating this crap, it's an estrogen mimicker that will make you grow tits if your a man.

Ice cream- whaaaa, your ice cream costs more!

Coffee -  a non-necessity once you have weaned yourself.

Corn - Just what my GM craving body needs more of.

Oil - get a bike, lose some weight. Get a motorcycle and get there twice as fast.

Milk - for goodness sake, all mammals lactate. Get creative. Dogs, cats, even the wolverine can produce quality nutritious milk.

Wed, 11/10/2010 - 14:51 | 717112 Xedus129
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Wed, 11/10/2010 - 14:54 | 717119 RobD
RobD's picture

Milking a wolverine must take some talent, not sure I would go there. LOL

Wed, 11/10/2010 - 14:57 | 717130 RockyRacoon
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My dog is looking at me real funny like.  Can she read?

Coconuts, bitchez!

Wed, 11/10/2010 - 15:02 | 717154 Lucky Guesst
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You obviously haven't noticed the price of pet food. Try a goat, don't they eat whatever?

Wed, 11/10/2010 - 15:35 | 717326 goldsaver
goldsaver's picture

Nah, misconception. Goats it brush, leaves and hay. My damn goats are even picky about what grass variety they eat. Pisses me off when I have to feed them straw but still mow the goat pen.

Sun, 11/14/2010 - 23:04 | 726855 Temporalist
Temporalist's picture

The Original Weed Eater: Coming to a Golf Course Near You? Kentucky

Portland, OR - Invasion of the goats, coming to a weed-choked lot near you

It’s finally happened. The job outsourcing phenomenon has moved to another level. Forget outsourcing jobs to other countries—now they’re being outsourced to other species.

Even Steven Colbert reported on goats stealing landscaping jobs in CA.  I think you are overfeeding them the good stuff.

Wed, 11/10/2010 - 15:04 | 717164 DosZap
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Milk - for goodness sake, all mammals lactate. Get creative. Dogs, cats, even the wolverine can produce quality nutritious milk.


Yes, but your neighbors will have you least use farm animals.

Goats are good.

Wed, 11/10/2010 - 15:37 | 717338 Hook Line and S...
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Goats are good. In fact, I made good use of their udders in 10' squirts to nail my buds as a kid. College days were interesting as well, living in the suburbs I was too hormone laden to mow the backyard...ever. Thus, I took care of business with my Enduro and a goat I 'borrowed' from a girlfriend. This was an ace until it bleated all night and my Neeey-boars called the cops!

Wed, 11/10/2010 - 14:03 | 716940 Punderoso
Punderoso's picture

The box of cheerios costs the same but the number of cheerios they put in the box can decrease and they hope you don't notice. If you do notice and complain about that they can keep the number of cheerios the same but just make each cheerio smaller and they hope you don't notice. If you do notice and complain about it they can just switch to cheaper ingredients to make the cheerios and hope you don't notice.

All the time the government bureaucrats say: "move along there is no inflation here, the CPI says so!"

Wait I have seen this game before, isn't this done with currency every day.  Hell, the In the Roman empire they began shaving their gold coins or mixing in lesser metals and hope the citizens didn't notice.  Our Fed, debases the dollar and hopes you don't notice. Some scams never die.



Wed, 11/10/2010 - 14:58 | 717139 RockyRacoon
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They're making the holes bigger.  Used to be you could hardly see thru one.

Wed, 11/10/2010 - 14:14 | 716941 Waterfallsparkles
Waterfallsparkles's picture

I know this may be off topic but why are all of the Major Companies holding all of their Cash Overseas?  We saw the with Microsoft where they had to borrow money to pay a higher dividend.

On topic.  I often have wondered how the fed would value an 8 oz can of tuna that is now a 5oz can that is still priced the same just a smaller quanity. I also think that they are putting in more water than before so I am not sure how much of the 5oz is water.  Would they just compute that a can of tuna is the same?  Anyone know? 

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