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Wal-Mart US CEO To America: "Prepare For Serious Inflation"
To those who think that buying food in the corner deli is becoming a luxury, we have five words: you ain't seen nuthin' yet. U.S. consumers face "serious" inflation in the months ahead for
clothing, food and other products, the head of Wal-Mart's U.S.
operations warned Wednesday talking to USA Today. And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding reexporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us.
The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.
Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."
Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June.
"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."
Consumer prices — or the consumer price index — rose 0.5% in February, the most since mid-2009, largely because of surging food and gasoline prices. Core inflation, which excludes volatile food and energy costs, rose a more modest 0.2%, though that still exceeded estimates.
Add to this the shock that was today's grains report, and the summer is about to seem like straight out of Harare.
Farmers will struggle to replenish rapidly shrinking U.S. grain stocks this year, despite plans to sow the most land to corn since World War Two and near-record acreage to soybeans, two U.S. government reports showed on Thursday.
Chicago corn prices surged their daily limit, while soybeans and wheat jumped more than 3 percent as traders looked past higher-than-expected figures in the Department of Agriculture's annual planting survey to focus on inventories, which fell much more than forecast.
The report underscored the fact that U.S. farmers are now reaching the limits of arable land in the world's biggest crop exporter, with increased corn sowing coming at the expense of soybeans and cotton. The spring wheat crop, while among the biggest in decades, could yet shrink.
Here is why some grain traders made millions today:
This year's spring planting season in the world's biggest crop exporter is being watched more closely than ever by countries fearful that further increases in already record-high food prices could stoke unrest.
An analysis of the data based on the acreage estimates and historical yields suggested that the corn harvest could be the largest ever and soybeans the third-largest.
But that would still leave corn inventories at the end of the 2011/12 season at the equivalent of just three-weeks' supply, and soybeans would dwindle to scarcely 10 days' cover. Analysts say prices must rise high enough to reduce demand.
"This turns us back to having to ration the corn," said Charlie Sernatinger, analyst at ABN Amro.
May corn jumped 30 cents to $6.93-1/4 a bushel, hitting the daily exchange limit; options trading suggested further gains to more than $7.15, near the post-2008 peak of $7.35 hit on March 4. Soybeans jumped to over $14.18 and wheat recouped part of its 20 percent slump since mid-February.
As we expected over the weekend, the commodity correction is over, and absent another nuclear explosion (which still will be priced in within minutes) commodities have only one way to from here.
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Vegans are just free-range humans.
And Asians are to spicy with not enough meat.
Corn feed people pate is made from PEOPLE!
Fuck Silver...Give me some CORN bitch
The discussion of inflation seems spot on, but the remark that "The report underscored the fact that U.S. farmers are now reaching the limits of arable land in the world's biggest crop exporter" seems absurd to me. On any given day, I pass thousands and thousands of acres of good farmland in the Midwest lying fallow or, in many cases, untouched by plow for years and years. Many farmers are paid by the U.S. government NOT to plant. My guess is that we are not even close to maximizing our arable land--not even remotely close.
Yeah and god forbid people start their own vegetable gardens again. I did, and I have plenty of food for me and my woman. It's amazing what 320 sq. ft can grow.
+1
+Squarefoot Gardening!
I think you need to grow it indoors, or in a Cave. Hydroponic style?
Those Medical Marijuana folks may switch to growing Soybeans soon.
LOL
http://gardenpool.org/
Damned interesting. Wonder how well it would stand up to a good wind?
uhm, porobably not.
But I might drop a fish tank in and raise fish at the same time as my crop. The water filters thru and cleans itself. So know I get a dozen fish on top of my 2 pounds of bud!
Hey now, don't go letting the facts get in the way of a good criminal syndicate Wall Street banker story, now.
And yes, those non farmed acres are all over the place. I have hunted them.
Let's see:
trains, farming, autos... I don't get it... where's the link?! ;)
Let's cut the gov subsidies to farmers...and let's start with the fucktard Tea Party farmers who talk out of both sides of their mouth.
GMA Takes On ‘Tea Party Darlings On The Dole’by Mark Joyella | 8:58 am, March 31st, 2011
http://www.mediaite.com/tv/gma-takes-on-tea-party-darlings-on-the-dole/
Thursday morning, ABC’s Good Morning America suggested some of the Tea Party’s leaders have a case of “Hill Hypocrisy” for attacking government spending while taking millions in government money. ABC’s senior political correspondent Jonathan Karl reported “the Tea Party movement is all about slashing federal spending, but at least five House members with Tea Party connections have themselves collected more than $100,000 each in federal farm subsidies, totalling more than $8 million since 1995.”
The subsidies are included in a report out Thursday by the Environmental Working Group. “We need a better system,” said Rep. Stephen Fincher, a Tennessee Republican whose family farm has received more than $3 million in subsidies, with more than $100,000 going directly to the Congressman himself. Asked directly if he’d refuse to take any further subsidies, he dodged the question. Others said the farm subsidies–totalling $16 billion–need to cut if not eliminated.
Watch the story here, from ABC News:
Not only in the Midwest. Farming has all but disappeared from New England and parts of the Southeast. If these prices last for a while, many things will change, but this is small potatoes compared to the tragedy in Japan and eventually much of the Orient.
Do you know ANYTHING about agriculture? Did you do a soil test on that land to determine whether it can actually grow shit that can pay for the inputs to it?
Fallow means REGENERATING, regenerating from mineral depletion, regeneration from compaction... Further, what may APPEAR to be fallow operations may not be: may be growing various grasses (to help build soil back up), grasses which may be cut and sold for livestock.
Given our increasing shortages of water we're going to start seeing more and more Ag land go idle, or not be used for conventional crops.
We're fucked, not because of a lack of land/food (which we ARE running short of), but because of stupidity!
I predict the next bailouts will be for farmers who have hedged out their production not recognizing the market environment we're in. The price level of JJG suggests corn will be limit up two days in a row. Wheat seems to be breaking out again and would suggest a retest of the recent highs at least. Hogs will soon have no resistance. The Aussie looks headed for 1.15 to start. A break above 108 for crude will be extremely bullish IMHO. Market has something for everyone - if you're into S&M.
He's not the only one. Ammo reloading suppliers have been saying the same thing for a while now. All but the most daft are noticing shrinking products and rising costs. Funny thing is it takes a while for the effects of the devaluation to filter down fully to the serfs, so we still have a bumpy ride ahead of is if they end QE and don't restart it.
This "recover" is a killer on the wallet!
There's gold up in them their hills!
SAVE AMERICA, HANG A BANKER
I guess this guy didn't get the memo. He may want to consider sleeping with one eye open.
Bernanke is just the front man for his mobster sponsors.
Without the printing and borrowing,
neither the financial tycoons nor the war merchants could continue their mutually supportive swindles and wars.
This is going to get scary come summer.
Serious inflation?
I don't agree with premise.
-Ben
The Walmart CEO is just trying to bag 1 last great quarter by inducing you to spend your money NOW so you will be tempted to add those cheap Chinese trinkets (high margin) versus "just buying food" because you will be so broke even that will no longer be affordable.
Thanks Asshole?
I can't put my finger on it, but there is something off about that guy. Perhaps it was how he confused the word recession with recovery before correcting himself.
I noticed that too. It was as if he was trained that way. Depression to Recession is really Depression to Recovery.
"Uh, recession, repression, it's all the same thing."
Chech & Chong
I notice that too. He wasn't confused. They are trained to use certain words when talking to the public. It's a misuse of words. So we went from Depression to recession, or recovery. So the rate of bleeding has slowed down?
I don't think so.
"Recession, repression, it's all the same thing."
Chech & Chong
I have seen this in the prices of many of Wal-Mart's food items. Milk and cereal prices etc. have surged higher.
Good job, the Ben Bernank.
The Ben Bernank = The Great Chairsatan & enemy of the people
A food fight is coming to inner city near you this summer. When the welfare cards don't buy 1/3 of what they used to, the sheeple will be in the streets. They won't be throwing donuts tho.
The govt better subsidize the price of malt liquor or the SHTF big time.
My friends and I homewbrew. We grow our own hops.
We have yet to find a grain farmer to bater with.
Got barley Bitchez?
If you're in a farming area, try a local farmer's co-op or grain elevator.
If you're not in a farming area, reconsider where you're living.
fuck 'em. that's a demographic that won't work, doesn't want to work, and never will work. Cut them off. Most cities are seeing crime rate declines through this recession as a result of accelerated gentrification. The notion of "inner city" is a thing of the past.
Don't think so. Poor peoples' SNAP will be increased to match inflation much better than working peoples' wages will. We're going to move very rapidly from a 3-class society with a decent middle to a 2-class society with <5% on top and the rest nowhere pleasant. Somewhat like Argentina. Already happening.
Get your tube sock now. Load up on cases of canned Chili.
This is definately bullish. Let me confirm with my eight ball. Woosh woosh woosh.
"Try again later."
Hmmm, ok.......
.....woosh woosh woosh.....
"Concentrate and ask again."
Ohm.....woosh woosh woosh.....
"You may rely on it."
Yes! Rally on!
Hvae no fear guys have you heard the new infomercial in Bloomberg,Fox Buisness,CNBS. Its sponsered by the federal Reserve,Treasury Dept and White House! 1-800-BEN-CASH! Best invention yet. It goes like this.
Are you a broke EU nation or a state running massive deficits near bankruptcy? Are you facing riots,austerity measures that are not workin? Or having entitlements that are bankrupting you? Have no fear just call 1-800-BEN-CASH and you will receive fresh dolla bills print by the Chairsatan himself Zimbabwe Ben! All your problem will go away with Ben's cash. He will just print,print,print!!! 1 trillion,2 trillion,15 trillion? No problemo! So all your problems will go away. Say goodbye to riots,austerity,and bankruptcy! So call 1-800-BEN-CASH! It is 1-800-BEN-CASH! With an offer this good inflation is the least of your worries. So say goodbye to default and hello to endless Ben Cash!
Results May Vary.
1-800-BEN-CASH is not responsible if the cash is worthless or if you face inflation. Side effects of Ben Cash include PM skyrocketing,food prices explode,and hyperinflation. If you have any of these symptoms call 1-800-IMF-CASH or start a war. If not declare default.
LOL!!
The fruit, vegetables, and meat at Wal Mart isn't fit for human consumption anyway.
they sent me a $5 shopping card.
Now you can buy a plastic dustpan for after you burn your dollars in your stove for heat.
Ben S. Bernanke on Inflation (lack of it, per him):
No tricks or attempt at humor. It's from a speech he gave on February 9th of this year.
Bernanke says inflation still too lowOk, depression...... Come here.... Come here, sweetie pie...
United we stand and divided we be falling into occular penetration.
The unreal market does not play any gamble on reality. Maybe buying uncertainty is the next gamble> No, only being a market maker where you have the power to twist the ever living shit out of any stock and any futures contract, when ever you fucking, feel the need.
The big boys, bought the right.
Ben can fix this in 15 min.
When does serious inflation become hyper inflation??
In about 9 minutes.
LOL!!
That's less than the infamous "15 minutes", but then again, a minute ain't worth what it used to be.
I thought that was the point of the comment? Hyperinflation can be achieved before the Chairman can put in the stop? I guess finding something humorous is a junkable offence now?
If the Pope dresses like a liberty cap mushroom, and nobody remembers that people used to go through rites of passage that included eating said mushrooms, do we still worship mushrooms?
I know two things that are not going up: Real Estate and Wally Mart wages.
The Fundamental problem is;
Wages rises Linearly
Interest rises geometrically
That's why Fiats ALWAYS go to zero value eventually.
The Fundamental problem is;
Wages rises Linearly
Interest rises geometrically
That's why Fiats ALWAYS go to zero value eventually.
I think im going to sell my US dollars and buy farm ville dollars.
Better quality, smarter people at the controls.
The report underscored the fact that U.S. farmers are now reaching the limits of arable land
I call BS on that statement, drive the I5 in California from Bakersfield to Mt Shasta and you will see unused arable land for hours on end.
'Pipe down buddy...sheesh. Big daddy banker is getting his Ag on...and it feels sooooo gooood.' J. Dimon
But don't worry because by time the crop is coming in, prices will be back down...as the criminal syndicate known as Wall Street arbitrages to death everything on the surface of the earth, hosing the farmers that have been working on the crop for four months.
And after that there comes the whining about how hard banking work is.
Get up to speed man...long corn, long subprime paper, short silver is the trade....duh.
No kidding and that's what's seen from the Hwy. Take a plane over the same area, and it's amazing how much land is out there for Agri. People live in such tiny and dense areas, yet all around is open and useful achrage.
water?
Good point. People get so used to it coming from the tap. They never think how much water is needed to grow food or where they will get it if the tap doesn't run.
I can tell you one thing this will become a regional issue of great importance. Even now it is an important issue for some states. It will also be interesting to see what kind of control is used to keep people from draining water management canals for farming/gardening or fishing them into oblivion for food.
There are farming methods that produce food in 'desert' conditions, permaculture techniques are one. You just can't strip the whole place bare, mono-crop, and expect high yields without tons of inputs; water, fertilizer, seeds, etc. which is basically what modern industrial farming is. Instead of creating a wasteland by planting something that isn't compatible with the climate or the soil but based on what crop is going to return the highest dollar, most farms chase themselves into oblivion. One big problem for smaller farms is learning to grow what can be used locally instead of trying to compete in larger markets where imports put pressure on pricing and transportation costs eat their bottom line, mono-cropping which limits their market and depletes their soils at the same time, and not varying their crops into seasonal, non-seasonal, and demand driven varieties to hedge against environmental or market impacts. I don't buy the premise that there is no more available land for crops, there's just a hundred years of mismanagement, the craze for Dollar Menu food, and cheap oil that's driven the quality of farming and the food we eat into the ground(pun intended). By avoiding Wally World for your veggies and fruit and visiting your local farmer's markets, CSA's, and farms, you'll not only eat better but you'll keep the market for that food 'next door'. That means if things do get worse, you'll have a reliable source of food that is priced for the local market and not for one 1500 miles away. (Disclaimer: I produce eggs, citrus, veggies, melons, fruit including: grapes, berries, and tropicals, and tilapia on 1/4 acre of 8 in total in Central FL on what used to be citrus grove and old growth forest)
Just made the same drive and the problem isn't land...it's water. Now this year, there is too much water but seems Sierra has may have the highest snowpack ever recorded by time winter is over...not likely farmers can plan on that coming their way again next year when the crop land would be ready.
Water is the problem in the west...not land.
It's not arable without water. It's desert and there is not a "reliable" water source for agriculture with the population in LA sucking more and more water every year.
CA ran out of water. It has to be used for an endangered fish. No oranges or almonds for you.
He looks depressed. I know these wal-mart guys are the sine qua non of plain vanilla, but his whole demeanor is of somebody who just gazed into the abyss and is trying to process it. btw, he was clearly lying about that whole lawsuit issue. you could see in his microexpressions.
get ready get ready get ready!!!! booyah!
(trade deficit to shrink?)
WalMart CEO probably got the word from his Chicom overlords that the peg was coming off.
On the plus side: My 30-yr fixed at 4.3% is looking like a good investment as I will get to pay the same amount every month with increasingly worthless dollars.
On the minus side: I might not be able to afford food.
I propose that we tax the gains on Commodity trades at 60%. That would kill all of the inflation in Commodities.
No it wouldn't. It would make commodity inflation even worse. You'd be constraining supply, boosting prices at the same time monetary effects are boosting prices.
Biflation, not inflation. Real estate prices are still dropping, which the Case Schiller index showed us yesterday. Government spending is falling, and even more importantly, wages are stagnant at best. It's the middle class vise-grip economy.
Maybe I will start calling it, "Fuckin' 'flation."
Does that mean the "Always Low Prices" slogan will quietly disappear?
How about:
Relatively Low Prices
Same Low Prices, Smaller Packages For Your Convenience!
"Comparatively low prices."
'Always Margin-alized Prices'
They'll quit hanging the price signs from the ceilings and place them on the floor! LOW PRICES! AND... they'll save on all the crap that they were using to hang them with! WIN WIN!
Speaking of Zimbabwe, how much would it suck for them if/when you see rapid inflation and correspondent dollar deflation - since they effectively switched to using the dollar as their currency after they hyperinflated their own.
Well, with corporate margins at all time highs the consumer hasn't actually been seeing the total benefits of the previous low inputs of production. And now right on queue corporate American wants up to eat the higher prices so they can maintain those high margins, bonuses and stock options.
The people should camp-out at the FED's door steps for this total fiasco of monetary policy. Never again should an academic be a member of the FOMC.
i think everyone agrees that inflation is understated and likely to increase in the future. I personally do not care what the reported inflation is because I'm dynamic and so are my purchasing habits. With that said, I want to know how I am impacted individually, not some statistical generalizations. To that end, I created a free website (http://www.collectiveCPI.com) that allows me (or anyone) to track their purchases over time. And if you ask me its unacceptable that these untrustworthy and devious companies are making their packages smaller too. At least be honest!! Thats why I included a mechanism to track page size so I know when I'm getting ripped off. Yeah it takes some manual effort and dedication but in the long run I think the insight will be invaluable to tell the real story about what I experienced. I invite others to sign up and start posting data. It'd be interesting to see what people across the country are dealing with. Its just me and my friends for now but hopefully we can create something great and start to hold people accountable!
I would also like to see the Debt Ceiling revaluated every Month. This would keep the FED from making any long range plans for Printing and using Americans money to give it away to the Banks.
Most of you seem to lack the understanding of what hyperinfaltion is and how it comes about. Continually misrepresented by Tyler on this site.
Not misrepresented, he is probably tired of explaining it over and over.. He explains one more time, then some idiot will post "hyperinflation is not possible without full to the brim employment" lol...
Walmart could always sell "safe radioactive food" at a discount to offset inflation.
I believe the term you are looking for is "enriched."
Also acceptable, "Biologically decontaminated for your safety!" (it was posed as a solution to mad-cow, after all)
Head Stone for the Fed Head........!!!!
Bury Benny soon please.
He don't even need to be dead.
They're going to end up owning all their suppliers for all practical purposes, they have juice with the government. Wal mart is probably going to do well
Which government, China's?
No, Wal-Mart, like every other BIG entity, is going to FAIL!
And the S&P continues to INFLATE !
In other related news...
Gold Could Drop 20% Says McEwen
Gold and silver prices could plunge 20% if investors' perception of the global economy continues to brighten, says US Gold Chief Executive Rob McEwen
Yup. Those rising food/household costs are gonna continue to 'brighten' that 'perception.
Bahahahaa.
Portugal finds buyers for its bonds. China being rumored
http://dawnwires.com/investment-news/portugal-find-buyers-for-its-bond-a...
50 million Americans smoke what the industry deceitfully calls 'tobacco' products. How many do you think are going to quit just because the price per pack hits $6-8, which it will, and soon. If you have garden space, devote a little of it to heirloom tobacco whether you smoke or not. You can also grow it in 10 gallon pots on a balcony or deck, or even indoors. It is going to be as valuable as food for barter, guaranteed. (But don't try to sell it 'cause the tax man watches that VERY carefully.) You'll find free detailed growing instructions on my website www.cultivatorshandbook.com
How can anyone be expected to consider Mr. Long’s analysis when Long’s clearly in the central bank camp, i.e., inflation has not been a problem! So now there’s going to be inflation after all these recent years of calm price stabilization? Honest observers of the economy have put actual inflation at more than 8% annually (SGS). It is well known that the Fed, in partnership with Congress, uses inflation to grow the government and to reduce its actual liabilities such as Social Security and debt payments; thus, the continued cover-up lie that inflation has not been a problem.
John Long, retail strategist at Kurt Salmon, is a planted story.
W. Michael McBride, J.D. of Mason-McBride Capital Advisors, wrote in 2010: “In the past we have written about the degradation in the integrity of the inflation figures over the years. The figure has become a political statistic instead of an economic statistic. John Williams of Shadow Government Statistics (SGS), (we have no affiliation, just a subscriber) calculates inflation the old-fashioned way. That is, by calculating it as a cost to maintain a level standard of living rather than a cost of living. The latter allows for interruptive manipulation by the political interests. Using the SGS formula, $8,700 in 1970 is equivalent to $140,000 in 2008. In other words, according to SGS figures, the average household is under water in real purchasing terms by $92,000.”
http://www.mason-mcbridecapitaladvisors.com/files/MMCA%20In%20the%20Know%202010%20Issue%201%20Running%20to%20Just%20Keep%20Up.pdf
Anyone who is not connected with the banker story knows inflation is steadily increasing. They live it; they know what their income will buy and what it won't buy. Ask anyone if things are costing them more than three years ago. Just don't ask Mr. Long or Mr. Bernanke.
Don't put your fiat into the industrial food chain. Prices are stable on the other side.
Buy up all our inventory now! Sales are going through the floor and we need to change this around ASAP! We need to pay off the lawsuits for these damned bitchy underpaid hoes that used to work here for dirt who we fired and these expensive good looking attorneys that had Scalia and his buddies licking their chops! BUY! BUY! TBTF CEOs, Banksters, CONgress, the rest of groperment and even CNBC are addicted to greed!
And they still continue with their blatant lies:
"Fed's Pianalto says sees inflation expectations kept in check, although may become more volatile "
Wally-world can't pass on those costs to consumers. Margin squeeze. Maybe why the stock has gone nowhere for ten years. Alot of brick and mortar to maintain, employees salaries to pay.. Being the biggest isn't alway best.
That may be true but I would venture to say that most investors that hold the walmart stock do so for the dividend.
It is time for a "Kinetic Military Action" in the United States.
It's the margin compression which leads us down the tubes. Watch folks. Co's will have to cut stores, employees, costs, inventory .. Fast. They either do that or Ch 11.
For a monster like WalMart, which controls costs and pricing, say "we're losing control." Kinda like PimpCo saying something stinks in the bond market, we should probably listen. One day BenWa Balls the Bernank will say "maybe this QE thing wasn't so hot after all."
this development may be the way we solve the obesity problem in America.
Kudlow should stock up on Pepto bismol.. bullish for Pharma!
Clearly, the Fed is lying to the American people. Why? Because the Fed - and the bankers they report to - are now preparing for their own legal defense.
Once the system collapses and thee bankers are being hauled into the courts and deposed by prosecutors - it will be critical that they can prove that they actually believed what they were doing would have a positive outcome.
Better to be seen as stupid than to be revealed a con artist with criminal intent.
To avoid the gallows, they'll need to convince juries that they actually believed in what they were doing.
Indeed as the CEO says, we should prepare for inflation in everything except the price of a share of stock in Wal-Mart. I had two women tell me how much they like consignment shopping in the past week. One has a master's degree in english and tutors my son, the other was a waitress at a cafe that I like to eat at. They both said it with a strange pride... like a badge of honor.
I support an after school program for disadvantaged kids and they've been looking for something to do with the middle school age boys who get into trouble. I've been thinking about setting them up with a small scale furniture refinishing operation. I was in that industry for a decade and our country imported a century's worth of furniture made with low cost labor that's all going to be due for overhaul. Of course half of it is made of pressed sawdust and belongs in the landfill, but the other half is renewable and is going to cost double in the future, so it may as well be refinished.
Good bye Wal-Mart... so sorry about that new store in my town that opened in the past month. Oh, you think you can raise your prices because you're so big. Good luck with that. I know a guy who is opening up a discount chain of no-frills grocery and it's right next door to your new store and everybody and their brother is planting a garden thanks to Cargill, Monsanto, high fructose corn syrup and GMO seeds. What percentage of Wal-Mart's business is food and clothes? I spent seventeen years in the textile and apparel industries. When buying used clothes is not only acceptable it becomes a matter of pride, look out below.
Dave Harrison
www.tradewithdave.com
Dave Walmart has 2 huge supercenters 6 miles apart in a NC County that I know of and then there is another 14 miles down the road! They got it covered!
Covered in overhead is more like it.... why don't you look up the history of W. T. Grant. Most people don't realize the herd-like functioning of the public. It is difficult for an organization as large as Wal-Mart to respond to the herd-like movements. There's a thing called price elasticity, or an assumption of in-elasticity in this case and their models are not durable enough to sustain such shocks.
What happens in reality is a change in consumption patterns and the big problem is that in some instances, when personal health is involved (such as healthy food) or conception of self-worth as they relate to personal appearance (i.e. new clothing) is that once there is a release of new understanding it becomes extraordinarily difficult to ever get the customer back. How many people who choose to quit smoking for the rest of their life ever buy cigarettes again if they're successful. Put that into your Texas Instruments and run the net present value to a tobacco company when they lose one loyal smoker for example of the impact on gross sales.
Now re-run the numbers based on Wal-Mart's gross margin return on investment. Their vulnerability to a falling dollar or rising yuan depends on the price elasticity of a G. I. Joe with the Kung-Fu Grip next Christmas. Dave says, carving knives will be more popular because you can carve more than one gift out of wood you pick up on the side of the road.
Look, this is a good thing. Yessirree. A very good thing. Once Zimbabwe-esque inflation hits the U.S. its over. QE will finally end. Bond prices will drop faster than the life-expectancy of Fukushima reactor repairmen. With no QE, and declining consumption, equities will seek out their final resting place. And Obama will be toast. Calloo, Calloy, frabjous day, frabjous day! Stock up on dried food.
What's the big deal? The major retailers of America, led by Wal-Mart, promised congress that they would lower prices when Dodd-Frank is implemented this summer and that hard cap on debit card interchange goes into effect.
Surely they didn't lie to congress? /sarcasm
Is my software fucked up or did someone just dump 75k worth of /es right at the close?
interesting video on the Fukushima situation
http://aangirfan.blogspot.com/
Walmart has always tried raising prices while PROCLAIMING to be the low cost leader. Just shop around and you'll see they often are not. So this is just another greedy corporate pig trying to deflect blame.
Second, uncle Bennie said he can stop inflation in 15 minutes. We shoud trust him implicitely. Go Ben go. /sarc off
So in a market economy, inflation should drive interest rates up and we will all get rich on the great CD rates at the bank. It will be fine.
/sarc
What he does not say is how large inflation will be at the Walmart Consumer level.
I import about 100 containers a year from China.
My first quotes in Jan 2011 for durable goods for fall 2011 delivery where up an average 11% to 15%.
Around the middle of Jan 2011 the Chinese government raised minimum wage 17 % and several of my container orders were refused without price increases.
One order (artificial Xmas trees is up 20%!!!!!) year over year.
My guess is that the consumer will see 10 to 15% across the board within 9 months.
I wonder how the governments are going to hide that one!
Good info. You import consumer goods only?
Perhaps we should stop burning corn.
We need more Bama Bucks, but make sure to use soon because we will wiping our arses with them by the end of the year
dp
For the Walmart CEO to say this is telling. I have noticed that Walmart has increased more of their Walmart brands over the others in alot of food products. Now they may not be able to hold prices down and are telling us to buckle up.