This page has been archived and commenting is disabled.

Three Inflationary Case Studies: Coke, Pasta And Rent

Tyler Durden's picture




 

Following what appears to be just the beginning of a major market flush which could well bring the S&P to triple digits in order to serve as a catalyst for QE3, the word inflation has become taboo: after all, it is expected that Bernanke will have snapped his fingers, and the 15 minute count down to deflation will start. Alas, no. There are at least three products in which inflation has proven to be particularly stubborn, all due to a unique set of factors. The first one is Coke (the drink, although probably not isolated thereto), which just announced plans to hike prices 3 yo 4% due to still surging commodity costs. The second is pasta, whose prices are also set to soar, this time due to adverse climatic conditions. Per Bloomberg, "Unrelenting rainfall may have slashed U.S. planting of durum wheat to the lowest level in more than 50 years, fueling a surge in the price of pasta and noodles as mills scramble for supply of the grain." And the last, and possibly most perverse price spike, is the one which will actually hike the CPI, due to an increase in the shelter, or rents, component, as more and more Americans forgo owning a home in exchange for renting, in the process pushing up the one component that accounts for 41% of core CPI. In this way we see three completely unrelated channels in which inflation will continue to push through even as stocks plunge: an event which most MMT theorists always perceive as inherently deflationary.

First, on the Coke price hike:

Coca-Cola Co. (KO) plans to raise prices 3% to 4% on drinks beginning July 31 to combat rising commodity costs.

The price increase, reported by trade publication Beverage Digest and confirmed by a Coke spokesman Friday, will vary across different sizes and drink brands, and will result in prices being 5% to 6% higher than they were a year ago. The magnitude of the announce price increases is in line with Coke's announced pricing plans.

The report cited a letter from Coca-Cola Refreshments, Coke's company-owned bottling business in North America, to retailers.

Another independent Coke bottler, Coke Consolidated, plans to raise prices 3% to 5% in early July, according to the report, which also noted that most other Coke bottlers will likely raise prices by similar amounts.

Next, the reason to start warehousing pasta:

Unrelenting rainfall may have slashed U.S. planting of durum wheat to the lowest level in more than 50 years, fueling a surge in the price of pasta and noodles as mills scramble for supply of the grain.

Farmers who normally are finished planting by now had completed just 44 percent as of June 19 in North Dakota, which produces more than two-thirds of U.S. durum, government data show. It’s too late to sow more without delaying the harvest to the winter-frost period, said Frayne Olson, an agricultural economist at North Dakota State University in Fargo.

Planting may drop 47 percent this year to 1.365 million acres, the lowest since 1959, Olson said. In the past month, parts of North Dakota and Montana, the second-biggest grower, had triple the normal rainfall, National Weather Service data show. North Dakota durum prices are up 52 percent in the past month, and U.S. pasta in May was the most-expensive on record.

“Basically, the selling has shut off in the U.S., because if you’re a holder of durum, there’s no point in selling it,” said Jim Kulp, a general manager at Philadelphia Macaroni, which makes pasta including the Alphabet Soup noodles for Campbell Soup Co. “If you’re holding durum wheat, it’s like gold. So why would you sell it?”

Durum futures:

Grain elevators in North Dakota are paying farmers about $14.40 a bushel for durum on average, up from $9.50 a month ago, North Dakota State’s Olson said. The price may top the record of $23 reached in February 2008 if additional weather problems hurt crops this growing season, he said.

The price of durum is rising faster than wheat futures on the Chicago Board of Trade, which primarily track the soft-red winter variety grown in the Midwest. Wheat futures are up 41 percent in the past year to $6.6925 a bushel yesterday.

“Higher durum prices are going to work their way through the system to higher pasta prices,” Olson said. “The cost of durum in the total cost of manufacturing pasta is fairly significant. There’s a limited amount the pasta manufacturer can do to absorb that cost differential. This will eventually have to be passed on to consumers.”

And the third iteration of inflation comes in the form of product substitution, in this case one which will actually hike the very metric used to measure inflation. Greed and Fear's Chris Wood explains:

One technical problem for the Fed is that core CPI inflation is rising because the so-called “shelter” component, which measures rents, is rising. Thus, core CPI inflation rose from 0.6%YoY in October 2010 to 1.5%YoY in May. While the shelter CPI, which accounts for 41% of the core CPI basket, rose by 1.1%YoY in May, up sharply from a 0.7%YoY decline in August 2010 (see Figure 1). GREED & fear is not surprised to see shelter rising. For the one segment of the American housing market GREED & fear is long-term bullish on is rental housing. This is because Americans will now want to rent not buy, as they are fast learning to appreciate the flexibility that comes with not being trapped in negative equity. Remember that 22.7% of American mortgage holders are now in negative equity, with another 5% of borrowers having less than 5% equity, according to real-estate research firm CoreLogic. It is also the case that there are good deals for tenants in rentals because of the continuing excess supply of housing.

Ironically as the Obama administration has realized this urgency to move from home purchases to rents, his latest action will be one of further stimulus, this time one which will however blow the Core CPI inflation out of the water due to the heavy weighing of rents in the Core CPI basket. From Reuters:

The Obama administration is exploring ways to support rental housing as the troubled U.S. real estate sector has kept potential buyers on the sidelines, a top U.S. Treasury official said on Friday.

"We support a housing finance market that provides liquidity and capital to support affordable rental options and help alleviate the burdens that many low-income households face," Treasury Under Secretary Jeffrey Goldstein told a housing conference.

"We are also exploring how private channels can finance affordable multi-family housing, perhaps with limited, targeted governmental support," he said.

Goldstein said the administration's range of options to expand support for lending for multifamily rental properties include reforms such as risk-sharing with private institutions.

It would be very paradoxical if the Fed will soon be willing and able to commence QE3 due to "deflationary" concerns, better known as plunging stocks, only to see artificially stimulated Core CPI prohibit this overture courtesy of increasing Obama efforts to pander to voters as the presidential race picks up in earnest.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 06/24/2011 - 15:47 | 1399510 Mercury
Mercury's picture

Well, just make sure core CPI 2.0 doesn't include rent, coke or spaghetti.

Problem solved.   Isn't central planning fun?

Fri, 06/24/2011 - 16:10 | 1399590 dwdollar
dwdollar's picture

"As more Americans become homeless street people we find that rent is no longer a valid factor in determining inflation."

~ Ben Bernanke 2013

Fri, 06/24/2011 - 16:27 | 1399664 TruthInSunshine
TruthInSunshine's picture

At the point when rents surge:

The FOMC, consistent with its duty to lie, obfuscate, distort, butcher & contaminate data and facts, has undertaken the decision to strongly urge the Bureau of Labor Statistics to remove the Owners' Equivalent of Rent portion of the CPI due to the still widely available supply of cardboard, which we have determined to be an adequate subsitute for human shelter.

--The Bernank

Fri, 06/24/2011 - 20:37 | 1400211 nope-1004
nope-1004's picture

The fact that a gov't, voted in on a mandate based on "hope" (what a joke!!), had to tap the SPR (a move done only twice before, I believe) means this gov't has lost all control over inflation and have no clue what to do next.

Gold and silver continue to be manipulated to cover up these crimes against ALL humanity.  Jail awaits.

 

Fri, 06/24/2011 - 20:46 | 1400232 cosmictrainwreck
cosmictrainwreck's picture

yup. this is how bad it is: even one of the hosts on CNN silly Morning Show today said: "a desperate move which just shows they don't know what they're doing" on CNN! Wonder if he got his fanny spanked.... Meanwhile, same show, Poppy is saying people-on-the-street going "WTF?"

Fri, 06/24/2011 - 22:32 | 1400408 Instant Karma
Instant Karma's picture

I paid 89 cents for 2 liters of coke in 1987, and I can buy it on sale for $1 now. Essentially no price increase in 20 years. Pasta inflation? Give me a break. Rents? That is true, as is increased prices for used cars. Supply lower prices higher. Hence, buy a cheap house and a new car.

Fri, 06/24/2011 - 22:41 | 1400429 TruthInSunshine
TruthInSunshine's picture

That's not very compelling, and even with respect to you claim about new cars, they're extremely pricey right now (although I agree used cars are a worse value proposition, thanks in no small part to the genius that was the 'cash for clunkers' program).

Medical insurance, prescription meds, tuition, quality meats (pork is out of control), vegetables, fruit, gasoline/diesel/heating oil, electricity (even regulated rates), property taxes, copper (out of control), building materials (low demand but reduced supply coupled with speculative bidding up of composite materials) -

- see a pattern here? Most of this list consists of things people have to buy. The iPad/computer/2 Liter/housing purchase offsets do not fiat for fiat offset these dramatic hikes because the computer, house, etc. are much more elastic, only needing to be purchased from every 5 to every 50 years.

Try going without medical insurance, utilities, food or gasoline for more than a few weeks.

And don't even get me started on beer. The price hikes in beer is enough to warrant a revolution.

Sat, 06/25/2011 - 11:38 | 1400973 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Coca-Cola owns most of the fresh water aquifers in Third World States and if you want to drink fresh water there you will most likely buy a Coke product.  Coke is inelastic.

Wheat is interesting because there are substitutes for wheat, but still, it is an inelastic good.

As to computers not everyone needs one.  Same with ownership of most goods.

Sat, 06/25/2011 - 16:41 | 1401504 spooz
spooz's picture

Not so inelastic for me.  If coke is more expensive, I get Pepsi.  If Pepsi is too high, I get the store brand.  But then i don't drink the stuff.  I just supply it to my family and they take what they can get.

Fri, 06/24/2011 - 23:57 | 1400560 Popo
Popo's picture

Agreed.

And pasta inflation due to flooding is hardly the Bernank's pervue. There are three random data points taken here and they are not all related to money supply/liquidity so they don't paint a compelling picture.

BUT... Is there inflation in commodities? Yes.

Is it due to liquidity driven speculation? YES.

This silly article chooses to miss the far more compelling and obvious targets in factor of idiotic ones, and then fails to hit the mark. Why focus on discrete datapoints when you can look at an entire commodities index?
It's silly.

Sat, 06/25/2011 - 02:16 | 1400686 WaterWings
WaterWings's picture

I hate to say it, but you have a very good point(s).

John Williams, do you have an opinion?

Anyone paying attention will agree our way of life is totally ******, but I want to see $5/box for pasta at Walmart before I believe hyperinflation is here NOW.

We all know something big is on the way.

We've been at the tipping point for a while now. In my 30's I see a lot of my elders nodding their head at my comments - without alarm. Hmm.

Cognitive dissonance? Yes.

Is there a major default (WAR) coming? YES.

Fiat will always go the way of the Fiat.

Sat, 06/25/2011 - 08:36 | 1400838 tip e. canoe
tip e. canoe's picture

ww, i also find that the old timers are pretty much the only ones who i can have open conversations on such topics without having to mince words to sidestep the dissonance.

Sat, 06/25/2011 - 09:34 | 1400877 bugs_
bugs_'s picture

I think this time around the worry won't be a shelf full of $5 pasta boxes - the worry this time is that there will be an empty shelf of $1 pasta boxes.

Fri, 06/24/2011 - 22:22 | 1400393 steveo
steveo's picture

lol

 

Fri, 06/24/2011 - 16:37 | 1399675 Ergo
Ergo's picture

lol.  good one.

On rent in Houston:  My realtor friend tells me rental homes are the hottest he's ever seen in 20 years.  Part of the reason is job insecurity, so families are reluctant to buy.  Rental properties are only on the market a week in our area (middle of city).  Prices are going up. 

In the 'burbs, it's different.  People having mortgage trouble can't sell w/o a big loss, and thus are renting out their homes.  Move into a cheap apartment or move in with relatives, and rent out your house.  Better than foreclosure.  The ongoing cycle of job loss, divorce, etc., will kick you out of your home anyway.   

If you're a renter, consider this:  I like to write in an option clause to our lease agreements, for a one year extension at the same price and terms.  That's an absolutely free option, which protects against inflation. 

Sat, 06/25/2011 - 00:31 | 1400597 Oh regional Indian
Oh regional Indian's picture

When in California in 2005-6, housing bubble roaring along, I tried to get a landlady to see that it would be good for both of us if we wrote a clause that said that unusual movement in prices/rents would need a sit down to decide how to reprice. I was of course looking at the crash straight ahead.

But she could not grasp the concept. I think it should be in every rental agreement.

ORI

http://aadivaahan.wordpress.com/2011/06/21/thunder-perfect-mind/

 

 

Fri, 06/24/2011 - 16:44 | 1399697 ncdirtdigger
ncdirtdigger's picture

Now that, is funny. Or is it?

Fri, 06/24/2011 - 17:07 | 1399753 sleepingbeauty
sleepingbeauty's picture

+1

Fri, 06/24/2011 - 22:01 | 1400367 mickeyman
mickeyman's picture

As more Americans become homeless street people we find that rent is no longer a valid factor in determining inflation."

~ Ben Bernanke 2013

 

And from a speech a few months later,

"As more Americans starve to death, the demand for food declines, which has a negative impact on inflation."

Sat, 06/25/2011 - 10:04 | 1400888 FEDbuster
FEDbuster's picture

"To truly balance the rent component of the CPI, we have decided to include those paying zero rent in tent cities, Walmart parking lots and living in the basements or garages of relatives.  Therefore, 25% of the rent figure will be figured at zero cost.  This adjustment to the new reality will keep our CPI figures at or near zero through at least the 2012 election. 

We are also looking to adjust food costs to reflect the 45 million Americans receiving food stamps, thereby having a zero or near zero grocery bill.  Let's face it, between food stamps and food banks there are a bunch of people eating for free.

Medical costs are set to decline 20% due to a heavier weighting of the $4. generic prescription."

In other news, the government has just announced that from now on 2+2=5.

Fri, 06/24/2011 - 22:44 | 1400434 wisefool
wisefool's picture

Sarc: Rent is like self determitalizationalism. I was in Chicago when oprah gave out free cars. Timmy G. was stuck doing tax forms for the IMF. That's the reason he was not able to fill out his own. But if you want a real mind bender:

 

US Tax Code pays for abortion. Keysianism was invented in Europe.

 

Any Euroes want to educated me on tax/abortion policy?

Sat, 06/25/2011 - 16:51 | 1401508 spooz
spooz's picture

No you are all educateded already.  Abortion and taxes (which is all you really need to know about Keysianismism).  Nuff said.

Sat, 06/25/2011 - 08:53 | 1400854 Soul Train
Soul Train's picture

We'll see how these markets are next three months re: prospects for QE3. The Fed has made public statements that the equity markets are a current transmission.

In the meantime, anyone thinking a quick bounce off of the 200 dma is in for a surprise.

Check out TRV and GE. They broke below the 200 dma this week and closed below.

Heads up! or should I say heads down.

Market is going lower and we should have a big day down, with plenty of head fakes both directions next couple months.

Buckle up and enjoy the ride. ;)

Fri, 06/24/2011 - 16:20 | 1399591 TruthInSunshine
TruthInSunshine's picture

OT, but Hindenburg signal has truly arrived.

Paul Krugman wrote an article I fully agree with, wherein he makes the case that Iceland & Argentina are far better off since telling the wankin' fukin' bankers to piss off, and that Greece should follow their lead.

Batten down the hatches! Lock & Load, bitchez!


Argentina Is A PERFECT Example Of How A Default Can Work

Fri, 06/24/2011 - 19:00 | 1400028 krispkritter
krispkritter's picture

Well beat me with a stick and call me Puffy! Krugman? Had to laugh at this comment though: "Professor Krugman,


I have to say I love your blog and columns after following them for years.

I'm pretty middle of the road politically, but you are the only mainstream expert commentator on economic matters I know of that (a) has gotten it right almost all of the time over the years and (b) understands the horrible destruction that economic conditions can have on the lives of individuals, such as a high unemployment rate.

Anyway, I hope you continue to maintain a high profile. Perhaps policy makers will be swayed (more) someday."

Now that IS funny...

Fri, 06/24/2011 - 20:29 | 1400193 malek
malek's picture

That is really funny!
Some people even compliment clowns in all seriousness...

Fri, 06/24/2011 - 22:35 | 1400420 wisefool
wisefool's picture

Planned parenthood is an organization that recieves a part of 30% of the money that is the sum total of USD created every year.

 

Also, Ben has a PhD, but he consults a PhD when he does not know how many orders of magnitude to increase the money supply with/by.

Fri, 06/24/2011 - 23:35 | 1400517 jeff montanye
jeff montanye's picture

i before e except after c.

Fri, 06/24/2011 - 23:46 | 1400536 wisefool
wisefool's picture

You forgot to pay your taxes, idiot and I slipped through the abortion motivator hygiene school.

Do you want to know more?

Sat, 06/25/2011 - 08:49 | 1400853 Medea
Medea's picture

I love gibberish.

Sat, 06/25/2011 - 06:29 | 1400783 Solid
Solid's picture

Hey Puffy

Sat, 06/25/2011 - 06:07 | 1400774 doesmybuttlookf...
doesmybuttlookfatinthis's picture

Its a tale of two economies. We will have inflation of things we need like food,energy and rent. And deflation in high end things we want like houses, big screen TVs and cars.

Sat, 06/25/2011 - 08:22 | 1400826 Beancounter
Beancounter's picture

Exactly right, add them to the excluded food and fuel costs and the only inflation you have left is in cars and airplanes so ...why worry.  Things are FINE.8

Fri, 06/24/2011 - 15:42 | 1399512 ghostfaceinvestah
ghostfaceinvestah's picture

Commodity prices will soon crash, no worries there.  We are re-entering deflation, until Bernanke starts printing again.

Fri, 06/24/2011 - 15:57 | 1399573 Dre4dwolf
Dre4dwolf's picture

We never got out of the deflation imo, I think food prices and junk where rising because people are getting scared and are starting to horde ;p....

Fri, 06/24/2011 - 22:04 | 1400365 Goldtoothchimp09
Goldtoothchimp09's picture

sharing this with my ZH brethren -- stock market is ready to implode!  Based on my Elliott Wave setup.

 

http://jeffreygtc.blogspot.com/2011/06/friday-june-24th.html

Sat, 06/25/2011 - 02:37 | 1400706 WaterWings
WaterWings's picture

Watch the Fight Club porch scene.

Otherwise, keep up the good work. Merci.

Sat, 06/25/2011 - 10:11 | 1400890 Papasmurf
Papasmurf's picture

Elliott wave is bullshit.

Fri, 06/24/2011 - 15:47 | 1399513 TruthInSunshine
TruthInSunshine's picture

Even Coca-Cola, with its war chest and legion of attorneys, is afraid to cross paths with Goldman Sachs, whose aluminum hording warehouse operations (sanctioned by both the LME & Eric PlaceHolder), are one of the main reasons for Coca-Cola's rising input costs:

 

Goldman, JP Morgan Have Now Become A Commodity Cartel ... - Zero Hedge

 

Coca-Cola and other consumers say that Metro in particular is allowing the minimum amount of aluminum allowed by the LME—1,500 metric tons a day—to leave its facilities, and that Metro could remove much more, erasing supply bottlenecks and lowering premiums for physical delivery in the process. Coca-Cola, which has complained to the LME, says it can take months to get the metal the company needs, even though warehouses are allowing aluminum to come in much more quickly. Warehouses, meantime, collect rent and other fees." It is not only Goldman's Metro operations, but includes JP Morgan's Henry Bath division, and naturally commodities behemoth Glencore, all of which are taking advantage of the LME's guidelines and rules which make the imposition of a pseudo-monopoly an easy task.

Fri, 06/24/2011 - 20:35 | 1400207 jo6pac
jo6pac's picture

I'm the left and thanks for pointing that out.

 

Everything is on schedule, please move along.

Fri, 06/24/2011 - 21:46 | 1400337 sun tzu
sun tzu's picture

Maybe Coca Cola should buy Alcoa. They can change their name to Alcola Cola.

Fri, 06/24/2011 - 22:27 | 1400398 TruthInSunshine
TruthInSunshine's picture

Or maybe Eric PlaceHolder should get off his lazy, corrupt ass, and do his job, which in this case, would be building and prosecuting a case against these three collusionary warehouse bottleneckers.

I don't think I've seen a more useless DOJ than that which exists under Eric PlaceHolder.

Fri, 06/24/2011 - 22:29 | 1400411 topcallingtroll
topcallingtroll's picture

It would require another teddy roosevelt to break up these monopolies.

Obama has no clue. Even if he knew what was going on he has to remain silent because he is trying to use wall street to get campaign money.

Fri, 06/24/2011 - 22:51 | 1400440 TruthInSunshine
TruthInSunshine's picture

Not that they weren't fallible and had no warts (they were and they did), but I like to believe that Eisenhower and Kennedy would not have stood for this shit, at all.

The truth of the matter is that the "let's really screw over consumers on the prices of essentials needed to live" racket began in earnest in 2000, when that piece of shit Phil Gramm, whose wife just so happened to be the chairwoman of the CFTC, sponsored The Commodity Futures Modernization Act of 2000 (CFMA), along with the Enron Loophole, which passed.

Before that time, absent acute and genuinely temporary crises (political events - OPEC Embargo, wars, extreme weather events - think coffee), prices on basic products and goods were quite stable.

It's been volatility city ever since 2000 across the board.

Bernankincide has massively exacerbated that masturbation.

Fri, 06/24/2011 - 23:39 | 1400529 Rick64
Rick64's picture

 Here is JFK calling out the Steel Companies.

 http://www.youtube.com/watch?v=zWNhWANkq0Q

Sat, 06/25/2011 - 00:16 | 1400581 wisefool
wisefool's picture

Ahh yes. JFK was irish right? Always praying for the french gods to rescue them some day? The boys dying in Siam was not enough. needed the tribute too.

 

Under the administration of the French President Charles de Gaulle up to 1970, France reduced its dollar reserves, trading them for gold from the U.S. government, thereby reducing U.S. economic influence abroad. This, along with the fiscal strain of federal expenditures for the Vietnam War and persistent balance of payments deficits, led President Richard Nixon to end the direct convertibility of the dollar to gold on August 15th 1971, resulting in the system's breakdown (the "Nixon Shock").

Sat, 06/25/2011 - 00:53 | 1400628 Rick64
Rick64's picture

 Not sure what your point is, but if your blaming Kennedy for the Vietnam war then you should check the timeline for that conflict.

Sat, 06/25/2011 - 01:05 | 1400639 TruthInSunshine
TruthInSunshine's picture

Agree, Rick.

Call me crazy, but I got the distinct impression there was some very connected people that were quite angry with JFK for wanting to wind up operations in Vietnam.

Kennedy actually would have brought about a full withdrawal and conclusion, had he not been assassinated by a lone gunman who was then 'conveniently' killed by a topless nightclub owner with connections to the mafia who was all broken up emotionally over JFK's death.

Sat, 06/25/2011 - 01:50 | 1400668 Rick64
Rick64's picture

 Johnson had reversed Kennedy's disengagement policy from Vietnam in withdrawing 1,000 troops by the end of 1963 (NSAM 263 on 11 Oct.),[136] with his own NSAM 273 (26 Nov.)[137] [138] to expand the war.

 Then the war really blossomed. Massive war profiteering and corruption, massive chemical weapons experimentation as well as drug experiments, and massive loss of life (61% of U.S. troops age 21 or younger).   Johnson lying his ass off to the American people (pentagon papers).

 Communism then now its terrorism. History does repeat.

Sat, 06/25/2011 - 01:11 | 1400640 wisefool
wisefool's picture

My point is that if you try to glorify the Ike, Nixon kenedy era, and you do it objectively, you are going to see guys who thought gold was a barbaric relic, and redeemed it willingly to any foriegn nation with a USD. (most likely granted by the Marshal Plan)

 

At the sametime, all of them, including LBJ, participated in the "lofty" (non-barbaric) goal of preventing comunism from invading the colonies of the same fuckers who took our gold out of fort knox.

Sat, 06/25/2011 - 01:15 | 1400646 TruthInSunshine
TruthInSunshine's picture

I am definitely not trying to glorify them.

I'm just saying that on a relative basis, they were far better on the subject matter at hand (doing something/anything to help the middle class) than the sacks of shit we've had since.

Hell, I'd even argue that Reagan and maybe even Nixon would have pressed the DOJ to do something about what is clearly a price fixing racket.

p.s. - I'm not positive, but I suspect Kennedy actually did have a certain respect for silver, Ike probably had a nice precious collection.

Sat, 06/25/2011 - 01:24 | 1400651 wisefool
wisefool's picture

Right. Ronny and Carter both knew that Ike,JFK,Nixon sold out the gold. (the handshake with the Euro savages) and fought thier wars (Euroes pissing down the USAs leg). Since then you had frat bois like Bush I,II and clinton (and unfortunately Obama)  playing spy game instead of preserving the wealth of a nation that should really answer to no one, even if the gold and blood has been fully let.

To your P.S. no. Silver is a dirty metal. girls would rather thier hubby wear a stainless steel band than that nasty stuff.

Elect Ron Paul for President and the american people will wake up. He wont do a gold standard. He already knows the USAs gold is gone. But he will implement a sound money policy and bring our boys home. We have plenty of stuff to trade for oil other than blood or gold.

Sat, 06/25/2011 - 01:34 | 1400658 Rick64
Rick64's picture

 I'm not sure if you know the whole story, but JFK's participation was very limited. Here is a link that will provide the history.

 http://www.atimes.com/atimes/China_Business/JJ02Cb03.html

Sat, 06/25/2011 - 01:49 | 1400664 wisefool
wisefool's picture

Good article. I will read it several times. 

Fri, 06/24/2011 - 15:43 | 1399514 rockraider3
rockraider3's picture

Is this a platform for the Rent is too Damn High party?

Fri, 06/24/2011 - 15:44 | 1399517 Overpowered By Funk
Overpowered By Funk's picture

Meditate and chant: It's all transitory, it's all transitory, it's all transitory...

Fri, 06/24/2011 - 15:45 | 1399518 mayhem_korner
mayhem_korner's picture

We are also exploring how private channels can finance affordable multi-family housing, perhaps with limited, targeted governmental support

Code for gov't extortion.  Did this print before or after Whitey Bulger was picked up?

Fri, 06/24/2011 - 16:47 | 1399708 NotApplicable
NotApplicable's picture

Millions of empty houses "owned" by banks being kept off of the market while they find new ways to finance (read: securitize with Fannie/Freddie paper) more multi-family units.

Yeah, that should make everything better. Because we all know, building even more units will help alleviate the imbalance.

Fri, 06/24/2011 - 15:46 | 1399524 RobotTrader
RobotTrader's picture

Deflation in silver today.

Will we make it under $34 in the next 15 min.??

Fri, 06/24/2011 - 15:48 | 1399530 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

No... but COMEXs imaginary warehouse will make it under 20m ounces within the month.

Fri, 06/24/2011 - 16:03 | 1399589 DosZap
DosZap's picture

I say it will go below $34.00 for sure next Mon,(barring a major wankfest this weekend somehwhere)and Gold already has dropped to $1,499.00 once.

Keep on dropping,I want to back the truck up ONE more time.

 

Fri, 06/24/2011 - 15:53 | 1399550 lieutenantjohnchard
lieutenantjohnchard's picture

deflation in robottrader's portfolio today.

hd at low of day: check

vz at low of day: check

mo at low of day: check

will he have to cash in his silver eagles to eat: check

Fri, 06/24/2011 - 16:12 | 1399618 alien-IQ
alien-IQ's picture

you still long as per your claim earlier this week? or did you get stopped out again and again and again?

let me know when you decide to go short so I can take the other side of the trade.

Fri, 06/24/2011 - 15:45 | 1399533 Pat Hand
Pat Hand's picture

inflation will continue to push through even as stocks plunge: an event which most MMT theorists always perceive as inherently deflationary

I haven't seen any MMT theorists say this; did you just try to take a cheap shot or can you attibute it?

Fri, 06/24/2011 - 16:22 | 1399641 TPC
TPC's picture

We don't say equity price declines are deflationary.  In fact, at the onset of QE2 I said the Fed was idiotic for getting their panties in a bunch because of the equity market decline.  And I was very specific regarding the fact that their intense focus on the "wealth effect" and nominal wealth was misguided and would result in nothing more than inflation via speculation in commodities which would ultimately result in a margin squeeze and a slowing economy.    

We're on the same team regarding our view of the Fed so I don't see that there's a fight to be had here between ZHers and MMTers.  

 

 

Fri, 06/24/2011 - 15:49 | 1399538 plocequ1
plocequ1's picture

I just bought Ronzoni medium shells for .99 a box. same price as it was six months ago. No complaints here.

Fri, 06/24/2011 - 15:52 | 1399544 mayhem_korner
mayhem_korner's picture

Just got some remington .308 shells for $25 per 400 count of 8-shot.  Ditto.

Fri, 06/24/2011 - 15:52 | 1399557 plocequ1
plocequ1's picture

Shit, I was wide open for that one. Nice reply. 

Fri, 06/24/2011 - 16:09 | 1399609 Hacked Economy
Hacked Economy's picture

I just did the same thing this week...bought lots of Ronzoni at Wally World for my next round of food stockpiling.  No price difference than in the recent past.  99 cents per box.

But then again...all stores have their loss-leaders to get you in the door.  The trick is to buy those lower-priced items and stay away from the shiny trinkets they have on display right next to them.

Fri, 06/24/2011 - 17:09 | 1399748 blunderdog
blunderdog's picture

Are they same size boxes?  XD

It should be obvious that prices in any one given store/product may not move in perfect lockstep with the aggregate market pricing of the underlying commodity.

But for sure pasta prices have been way up over the past few years.  Back in about '03 I used to buy 16oz packages of dry pasta for about $0.29 each, and 5 for a dollar when on sale.  Now the best I can usually do is about $0.99 when on sale, around $1.29 normally.  250% increase over 8 years?  That's no joke.

Last time I saw a Ronzoni box it was $0.99 for 8oz.

Fri, 06/24/2011 - 18:02 | 1399897 DosZap
DosZap's picture

ploq,

stock up on em.

Kraft Mac & Cheese boxed dinners were 3/$1.00, now are $.85ea..

That is today........price increases from 12-14 mos ago.

Imagine where they are headed NOW.

You will be complaining if you wait.

Food prices in gen have gone up across the board over 25-35% in the last 24/30mos.(avg)

Depending on what you buy a LOT more,or somewhat less.

Keep in mind seasonality.

When the grocery store runs begin, all who ahve not laid in SOME stash, will truly be screwed.

Sat, 06/25/2011 - 17:14 | 1401529 Hacked Economy
Hacked Economy's picture

+1 on everything you just said.

Fri, 06/24/2011 - 15:47 | 1399542 Josh Randall
Josh Randall's picture

SNAP Rent cards to be coming soon

Fri, 06/24/2011 - 16:49 | 1399712 NotApplicable
NotApplicable's picture

One can only imagine all of the conditions that will be attached, for both the tenant, and the landlord.

Fri, 06/24/2011 - 18:08 | 1399927 krispkritter
krispkritter's picture

STRAP-ON: Supplemental Transitory Rental Assistance Program's Open Network cards. Brought to you by the new Rental Czar; Ben Dover.

Obama's new campaign slogan "Have a Coke and a smile and shut the fuck up!" (thank you Eddie Murphy)

Fri, 06/24/2011 - 15:48 | 1399545 mayhem_korner
mayhem_korner's picture

If I pay rent in pasta and coke, is it going up or down?

Fri, 06/24/2011 - 17:44 | 1399869 Thorlyx
Thorlyx's picture

ever tried to cook pasta in coke ? it's fun.

Fri, 06/24/2011 - 18:13 | 1399935 krispkritter
krispkritter's picture

Took too long to get the pasta through that little hole...

Fri, 06/24/2011 - 19:31 | 1400115 mayhem_korner
mayhem_korner's picture

Nice!

On a more serious culinary note - let your back ribs soak in ginger ale overnight, then simmer them in the same for about 3 hrs before grillin' w/BBQ - unbelievable!

Sat, 06/25/2011 - 01:58 | 1400680 rufusbird
rufusbird's picture

Cook them first in Dr. Pepper instead and it will knock your socks off...

Fri, 06/24/2011 - 15:49 | 1399551 Atomizer
Atomizer's picture

Socially engineered supply shock bubbles.

Fri, 06/24/2011 - 15:56 | 1399554 DosZap
DosZap's picture

Pasta products, uncooked was one of the fist bulk buy's I made.

They last forever if kept free of vermin.

Spam,canned goods of any type has shelf lives WAY past the exp dates.

Beans,rice,pasta,canned veggies,  canned / dried meats...................H2o.

As far as prices go, it's been a Zoo on foodstuffs......fast foods(choice of diabetes champs) are escalating Bi-weekly now, in a lot of types.

People on regular meds, best be laying in as much as they can get,even if you have to go to Mexico or Canuckville.

Many antidepressants, and anti anxiety drugs, quick deprivation, can cause a horrible death in a rather short time.

Fri, 06/24/2011 - 17:42 | 1399849 WakeUpPeeeeeople
WakeUpPeeeeeople's picture

Don't forget the squirrels in the back yard. Actually, tasty critters once they have been boiled for about 6 hrs.

Fri, 06/24/2011 - 17:51 | 1399864 Rodent Freikorps
Rodent Freikorps's picture

Certain varieties.

What are you going to do the second week?

Ground squirrels taste like hairballs dipped in tar.

Might as well eat a rat you shot off the top of a midden.

Fri, 06/24/2011 - 18:12 | 1399942 krispkritter
krispkritter's picture

Maybe you should de-hair them before you grind them. Oh you meant, never mind. And WTF is a midden?  Disclaimer: my property is named Squirrel Ranch. Lots of fun but climbing a tree with a hot branding iron gets a bit risky after awhile...

 

Mon, 06/27/2011 - 09:12 | 1405093 fallout11
fallout11's picture

A midden is an (old) European term for a trash/garbage pile.

Fri, 06/24/2011 - 23:27 | 1400495 TruthInSunshine
TruthInSunshine's picture

Rabbit, quail and pigeon (not the Times Square kind, but the farmed kind) all are outstanding.

Rabbit and pigeon are served at some of the best restaurants in Europe and in parts of the ME, and for good reason.

Only a small % of Americans would even consider eating rabbit or pigeon, but stew a rabbit appropriately, clean and butterfly a quail properly (marinating it and cooking it over charcoal or wood), or clean, stuff and roast a pigeon properly, and if you didn't tell them what it was, they'd ask for seconds.

I am not fond of most rodents (aside from rabbit) because they taste muddy, but they'd certainly do if times were bad and protein was required.

As far as game meats are concerned, elk is out of this world excellent, and buffalo should be standard fare given its amazingly high protein content, low cholesterol and saturated fat (it does help to keep it rare or add some fat to the cooking process to keep it moist), and the fact that unlike cattle, buffalo do not eat the chutes of the grass they graze on, so they don't destroy pasture (which accelerates soil erosion).

I look forward to taking a wild boar in Texas soon and have never eaten it. The population is out of control in the southwest.

I have never had a piece of bear that I wanted to really eat, and bear meat is full of parasites.

Americans are sheltered too much. Maybe one of the benefits of what is coming down the road is that many eyes and minds will be opened to a much wider variety of goodness that's available if one only looks around.

Mon, 06/27/2011 - 18:08 | 1406680 tip e. canoe
tip e. canoe's picture

+1 home where the buffalo roam

 

Sat, 06/25/2011 - 01:49 | 1400665 Yen Cross
Yen Cross's picture

RFK Don't waste your time. Krispy is North korean Poppy Junk!

Fri, 06/24/2011 - 19:33 | 1400121 mayhem_korner
mayhem_korner's picture

Reds are a bit gamey.  Fatten up the greys with some of the cranberry-style bird seed and you can get some good fillets. 

Garnish with acorns.  Serve.  Enjoy.

Fri, 06/24/2011 - 20:04 | 1400161 Rodent Freikorps
Rodent Freikorps's picture

Most game birds are outstanding.

Taste like snake ;)

Fri, 06/24/2011 - 20:25 | 1400194 Ahmeexnal
Ahmeexnal's picture

When TSHTF, the universe shall witness the true nature of mankind.

Deprived of JIT supply chain, the worst events shall take place in the large urban areas.

With no food left in supermarkets, mankind will devolve into it's primal state: cannibalism.

http://upload.wikimedia.org/wikipedia/commons/8/82/Francisco_de_Goya%2C_...

Fri, 06/24/2011 - 20:43 | 1400236 Rodent Freikorps
Rodent Freikorps's picture

heh.

Taste like pork.

Fri, 06/24/2011 - 21:12 | 1400270 Rusty Shorts
Rusty Shorts's picture

Snake: taste like Chicken ... i'm gone fishing. .. maybe a little shroom hunting.

Fri, 06/24/2011 - 23:22 | 1400499 Yen Cross
Yen Cross's picture

Alligator GAR?  I left ya another msg.

Sat, 06/25/2011 - 06:03 | 1400770 southsea13
southsea13's picture

Does anyone know what recipes might be available for banksters? I like the idea of slow-barbecued (no need to season as they`ve been fattened up on fine food and wine!) :) 

Sat, 06/25/2011 - 11:45 | 1400981 Rusty Shorts
Rusty Shorts's picture

 - a little cinnamon and brown sugar is a good starting point.

Fri, 06/24/2011 - 17:40 | 1399854 WakeUpPeeeeeople
WakeUpPeeeeeople's picture

dupe

Fri, 06/24/2011 - 15:51 | 1399555 Crab Cake
Crab Cake's picture

One consistent factor in nearly all revolutionary environments is increasing food scarcity and price. 

Fri, 06/24/2011 - 15:55 | 1399556 Alcoholic Nativ...
Alcoholic Native American's picture

My rent is 225 a month and I still can't afford it.

Fri, 06/24/2011 - 15:57 | 1399565 DosZap
DosZap's picture

I have a bud, that he and his son just closed on their third house.

They are buying strictly for rentals........the rental rates are starting to go thru the roof.

Fri, 06/24/2011 - 15:57 | 1399574 mayhem_korner
mayhem_korner's picture

Same thing happening with used cars - for the same reasons.

Fri, 06/24/2011 - 16:19 | 1399628 alien-IQ
alien-IQ's picture

this mysterious phenomenon of rents "going through the roof" must be a very isolated and area specific thing that is taking place because where I'm at there is absolutely zero evidence of any such thing taking place. Quite the contrary in fact.

Fri, 06/24/2011 - 16:56 | 1399727 NotApplicable
NotApplicable's picture

In this college town, the only evidence I see are the newer complexes filling up while the older places empty out. One place where I lived at 10 years ago has reduced the rent by 10%.

As for houses, most people seem to keep the prices up, and they stay vacant.

Fri, 06/24/2011 - 18:15 | 1399940 DosZap
DosZap's picture

I have read about it in several areas....but my AO Texas.

Fri, 06/24/2011 - 16:47 | 1399720 the grateful un...
the grateful unemployed's picture

last time i saw this happening in Socal was the 1970s. You could daisychain a series of fixer uppers with a handful of credit cards. Once the rent starts coming in and you're revenue neutral or positive, you move on to the next one. Now Uncle Obama is there is make your payment, sweet. Eventually interest rates went through the roof and killed off the recovery. This time around it almost feels backwards.  Problem this time is assets prices have a lot farther to fall, but if rents remain stable, the only problem is oversupply.

Fri, 06/24/2011 - 18:14 | 1399949 DosZap
DosZap's picture

 the only problem is oversupply

IF you have the cash to pay for them,is there an issue.

Folks that buy them outright,or have enough cash/credit, the rates are still very good..........

But, you either have to be wealthy,and /or employed, with a great paying job.

Fri, 06/24/2011 - 17:44 | 1399857 seek
seek's picture

In my market (Phoenix/Gilbert) they haven't gone up, but have held flat, while house prices have declined markedly.

My ex-fiancee' got bumped from her rental house at $1600/mo, moved into a temporary house at the same rate. The kicker is in the same neighborhood, an identical house can be purchased for about $100K and a nicer place for $120K. You do the math on the mortgage with current rates, and buying costs less than half what renting does. I'm stunned investors aren't decending in droves, even with management fees you're probably looking at a safe 8-10K profit depending on the place, assuming no equity changes, or about an 8-10% ROI on a cash purchase if you have it. If not, the trick is downpayments/qualifying/financing, it seems.

The irony burns, all the people who got foreclosed are now better off buying but can't, at least in this area.

Fri, 06/24/2011 - 18:16 | 1399953 DosZap
DosZap's picture

seek,

 You do the math on the mortgage with current rates, and buying costs less than half what renting does.

Not if you have to pay for repairs, and taxes.And your credit is crap.

Fri, 06/24/2011 - 20:29 | 1400204 Ahmeexnal
Ahmeexnal's picture

Not if you have to pay for repairs, and taxes.And your credit is crap.

 

And if most of your moolah goes to support your crack habit.

Fri, 06/24/2011 - 21:31 | 1400304 seek
seek's picture

Actually that statement is true with taxes. For now at least, if you're a resident homeowner. (Arizona put a little bomb in their real estate tax law that goes boom in 2012, effectively doubling property taxes on investment and second homes.)

Repairs obviously will depend on the state of the home and magnitude of the repair, but seriously, you're looking at a $750/mo payment for a house that's renting for $1,600, there's enough savings to buy an entire second house there.

Another way to look at it -- which was my point as it supports the story here -- is that rent is now 2X cost for this market at this point in time. It was 1X cost just 3 years ago. Granted, it's the cost basis that changed, but for people who were owning who got foreclosed on, they're now forced into a position where housing will cost them twice what it would have otherwise.

Fri, 06/24/2011 - 19:26 | 1400088 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

sss

Sat, 06/25/2011 - 13:13 | 1401149 Absinthe Minded
Absinthe Minded's picture

Must suck logging in, how do you remember it, cut and paste?

Fri, 06/24/2011 - 15:56 | 1399558 Bam_Man
Bam_Man's picture

What about Ukrainian escorts?

Fri, 06/24/2011 - 15:52 | 1399563 MrPoopypants
MrPoopypants's picture

Retail and finished-goods price increases lag commodity price increases.  These price hikes are responding to old news.

Re: pasta, for example, the price of wheat has cratered almost 15% in the past couple weeks and likely has further to go.  Huge head and shoulders dating back to last summer.

Further, any short term sweep that kicks equities down will take everything else with it (minus Treasuries and the dollar, of course).

Fri, 06/24/2011 - 15:54 | 1399566 buzzsaw99
buzzsaw99's picture

I paid $2.40 for a Coke at Red Lobster today.

Fri, 06/24/2011 - 16:19 | 1399617 dwdollar
dwdollar's picture

They've been $1.50 at the vending machines at the local mall for almost a year now.  I imagine they will go up soon.  At this point the vending machines should just round it to $2.

Fri, 06/24/2011 - 16:38 | 1399689 buzzsaw99
buzzsaw99's picture

I don't buy from machines very often and balk at over $7 for a 12 pk but somehow I don't mind paying up when I eat out. Much of the profit margin at most restaurants is in the drinks.

Fri, 06/24/2011 - 23:25 | 1400505 Yen Cross
Yen Cross's picture

  Buzz? That's not like you! It must have been a happy(rock lobster) meal for someone special.

Fri, 06/24/2011 - 16:01 | 1399572 koperniuk666
koperniuk666's picture

economics 101- rent does not determine price..... 

Fri, 06/24/2011 - 16:01 | 1399577 RobotTrader
RobotTrader's picture

Horrific close for SLV and GDX today.  TIPS soared to close near 52-week highs.

"Paper" is now favored over "Hard Assets"

Bob Brinker will probably chortle on about how "there is no inflation" because the 5-yr. yield at 1.38%, that's incredible.

Fri, 06/24/2011 - 16:06 | 1399606 Threeggg
Threeggg's picture

The printing press is keeping the illusion alive.

Fri, 06/24/2011 - 16:10 | 1399610 Internet Tough Guy
Internet Tough Guy's picture

Just keep buying blue chips. The yields are growing. LOL.

Fri, 06/24/2011 - 16:27 | 1399654 Greeny
Greeny's picture

Can you elaborate on that?

ABT YIELD near 3% down 19 cents today or 0.36%

Silver 0% Yield down 2.76%

I think entire market is down only because of these 3 component

performance : GOLD/SILVER/OIL/ Tech weak to, but still

do better than GOLD today.. So? WTF exactly you are talking about?

Fri, 06/24/2011 - 22:10 | 1400375 Goldtoothchimp09
Goldtoothchimp09's picture

you are going to get absolutely destroyed by the stock market.  And then i will buy your daughter for $50 and some used socks.

Fri, 06/24/2011 - 22:41 | 1400423 topcallingtroll
topcallingtroll's picture

Would you consider fractional ownership?

Sat, 06/25/2011 - 03:34 | 1400734 Yen Cross
Yen Cross's picture

 A G-5      YenCross. swoop. _1+

Fri, 06/24/2011 - 16:31 | 1399666 lieutenantjohnchard
lieutenantjohnchard's picture

horrific close for robottrader's darling, lulu, down 2.17% which is down more than pslv and phys.

a chortling eric sprott sends warm regards.

Fri, 06/24/2011 - 16:05 | 1399580 alien-IQ
alien-IQ's picture

no inflation issues in Miami. Coke has been at $50 per gram for at least the last 20 years.

Did I misunderstand something?

Fri, 06/24/2011 - 16:07 | 1399592 cosmictrainwreck
cosmictrainwreck's picture

meantime, the boyz made damn sure Dow closed LESS THAN a 1% down. whew! high fives all around

Fri, 06/24/2011 - 16:09 | 1399601 TruthInSunshine
TruthInSunshine's picture

It befuddles me that they failed to protect the Sheeple Vision 12,000 Maginot line on the Dow Index (of 30 stocks), though...

I'm befuddled and vexed.

Fri, 06/24/2011 - 16:17 | 1399614 slewie the pi-rat
slewie the pi-rat's picture

they may need to re-adjust the Marginot to re-approach the Maginot.

Fri, 06/24/2011 - 16:19 | 1399622 cosmictrainwreck
cosmictrainwreck's picture

well "ya can't win 'em all..." lulz. Monday's another day. Pig-head, greedy mofo's - I can't wait to see tricks up the sleeve. Let's see if Benny starts bidding up the ES Sunday night

Fri, 06/24/2011 - 16:05 | 1399603 slewie the pi-rat
slewie the pi-rat's picture

how many vermicelli are in a bu?

Fri, 06/24/2011 - 16:07 | 1399607 Rodent Freikorps
Rodent Freikorps's picture

1. That is weird. My experience says coke and hookers are in deflation.

2. I'd really, really hate to live in a non-oil producing Arab nation next year.

Fri, 06/24/2011 - 16:12 | 1399616 Mad Max
Mad Max's picture

My local supermart now offers 1.5 liter bottles of Pepsi brand products.  I assume it's test-marketing.  They are currently priced, logically, at 3/4 of the price of the same brand 2 liters, but the 1.5L at 99 cents is right where the 2L was on frequent sales a few months ago.

But no, no inflation here!

Fri, 06/24/2011 - 16:20 | 1399631 dwdollar
dwdollar's picture

Yep!  Here too!  I was just about to mention that.

Sat, 06/25/2011 - 08:35 | 1400837 Yen Cross
Yen Cross's picture

  Tell Slewie how luckie he is!     Tell that other punk! Just kidding.   That Uncle Yen is keeping an eye on things.  My crew planted Corn and Pumpkins.  I never forget.

Fri, 06/24/2011 - 16:27 | 1399652 Crab Cake
Crab Cake's picture

Fishing with my Dad and Brother on Father's Day...

"Prices sure are going up."

"No they're not, the purchasing power is going down."

"It's the same thing."

"No, it's not. Dollar devaluation is intentional by the Fed."

<I get the he's going on a rant look again.>"...ok <hunched shoulders that indicate same thing, and I'm just trying to be smart>

People still, don't understand that our dollar isn't money, and that it is a highly manipulated debt instrument used as a weapon against 90% of this country.

The above people are not unintelligent, and would shoot a robber on sight if they tried stealing from one of their houses.  When the Fed in collaboration with the Treasury, Ponziflate their money away in greater amounts than a robber ever could... ok....

I am not one of those that believe that the sheeple will remain idle and listless forever.  Sometime, sometime soon, the truth will be obvious... and I would not recommend being in an urban environment at such a time.

Fri, 06/24/2011 - 17:06 | 1399751 css1971
css1971's picture

I am not one of those that believe that the sheeple will remain idle and listless forever.

I am. Anyone who thinks otherwise is delusional. This has been going on for centuries if not millenia.

Fri, 06/24/2011 - 17:38 | 1399830 dwdollar
dwdollar's picture

Many revolutions and rebellions have occured during those millenia.  Even if those people 'in charge' are just puppets they do pay for their betrayal in siding with the bankers against the people.  Sometimes those payments are made with their lives.

Sat, 06/25/2011 - 01:06 | 1400637 cranky-old-geezer
cranky-old-geezer's picture

I am not one of those that believe that the sheeple will remain idle and listless forever. 

Sheeple will remain idle & listless about the dollar losing value.  Because there's nothing they can do about it.

When they can't afford to eat anymore, that's when they'll wake up.

Sat, 06/25/2011 - 08:41 | 1400840 Yen Cross
Yen Cross's picture

   You are the good work!! Thank you.

Sat, 06/25/2011 - 13:59 | 1401235 Rick64
Rick64's picture

 This is a point that Ron Paul has made many times. Unfortunately I think that most people didn't grasp the gravity of the issue. Also the inflation is hard to catch when companies discreetly reduce contents while using the same packaging or other gimmicks.

 The general population has to be bombarded daily by the media to be informed, but the media doesn't report the truth and relies on corporate ads for income as well as being owned by corporations (Catch-22). 

Fri, 06/24/2011 - 16:38 | 1399691 achmachat
achmachat's picture

in my parts of good old Europe, we buy our drinks in ONE liter bottles.

Our coke still comes in pretty curvy glass bottles.

oh.. and... 1,5 liters at 99 cents would be water, the cheap brand.

Fri, 06/24/2011 - 17:04 | 1399745 css1971
css1971's picture

There was a water bottling plant near to where I used to live. They used ordinary tap water at a fraction of a penny per litre. The marketing and advertising was easily the most expensive thing.

Fri, 06/24/2011 - 22:42 | 1400431 Mad Max
Mad Max's picture

In the US, water that has been mixed with high-fructose corn syrup and carbonic acid sells for considerably less than plain bottled water, AND it is far less likely to contain nasty bacteria or other germs.  Are we a great country or what?  ;-)

Fri, 06/24/2011 - 16:21 | 1399637 Greeny
Greeny's picture

Sure, if you hate to own a house, which depreciate in value,

then you end up in the trailer paying $1000/month

"major market flush which could well bring the S&P to triple

digits"

based on what observations?

Last corporate profits exceed expectations. Why creating panic

for nothing? Hopefully Greek will pass that vote and that should

do it.. And btw, Bernank need QE regardless of Economic stage,

to keep the Debt a float, it's not about Jobs nor

inflation, it's about size of the DEBT. Period.

But perhaps he just need to find the reason for it.

Fri, 06/24/2011 - 16:36 | 1399682 d00daa
d00daa's picture

Good fucking lord.

"Corporate profits exceed expectations" throughout 2007 and into 2008 as well, fucktard.  Margin compression ftw.  There is nothing left to cut.  Where is the growth coming from???

"Hopefully Greek will pass that vote and that should do it" - Wow, so that's it eh?  "Greek will pass that vote"  and all of a sudden - POOF! - Euro contagion solved?

You are a fucking genius.  Please tell me what you are buying so I can sell lots of it.  Thanks in advance.

Do NOT follow this link or you will be banned from the site!