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No Inflation? General Mills Begs to Differ

CrownThomas's picture




 

Repeatedly, all we hear is that Zero Hedge is just some wing nut website. Always stretching the truth about the economy's woes, and constantly claiming hyperinflation is just around the corner. Ya, about that...

General Mills came out Wednesday with their Q3 earnings, and what do you suppose was one of the top points they wanted to make to their investors? Just that they were experiencing significantly higher input costs year-over-year.

As a matter of fact, they say that YOY inflation input costs were actually higher by 2% 3% 5% 8% ...

10%-11%

So is it deflationary for the consumer if the 3rd biggest food company in America is experiencing double digit inflation?

But then again what do I know, I'm just a contributor to a blog. And I don't even have a Phd.

 

 

 

 

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Sat, 03/24/2012 - 09:44 | 2286390 kito
kito's picture

and of coure your flat panel has to be put into a home, which is of course still going down in value..........

Sun, 03/25/2012 - 04:26 | 2287791 GoinFawr
GoinFawr's picture

Try this experiment. Take a bag of balloons. Blow up one with an air compressor. Keeping the air compressor nozzle attached, but the power turned off, put a piece of tape over the balloon. Now take a pin and poke a hole in the tape. Once it deflates enough, put the balloon with the pinhole in it inside of another balloon and turn back on the air compressor. You'll notice that, depending on the rate of airflow from the air compressor, the balloon with the pinhole in it reinflates, continues to deflate, or maintains its currrent shape, but the outer balloon inflates regardless, as long as the compressor is pumping air.

Of course it's silly to think this experiment has absolutely anything at all to do with economics, but like most things it's great fun at office parties with an open bar after your 6th shot of tequila.

Sat, 03/24/2012 - 02:11 | 2286100 Element
Element's picture

long pink-slime

Sat, 03/24/2012 - 00:54 | 2286021 spiral_eyes
spiral_eyes's picture

transitory, bitches!

Sat, 03/24/2012 - 16:39 | 2287028 Stax Edwards
Stax Edwards's picture

CT is right about inflation, which is why the punch bowl needs to be removed sooner than later.  Inflation in 'needs' hits the lowest wage earners the hardest, so seeing we are already at nose bleed levels in the indexes, heading off the 'transitory' inflation in those items trumps pumping the russell at this point.  Promising zirp until 2014 will prove to be short sighted and tightenting will be needed before that IMO. 

In a perfect world the FED would start jawboning about tightening and no more QE, inciting a nice correction in the indexes which will provide the masses one last chance to get their retirement accounts back invested in equities before we go on to hit new highs in the next couple years.  The tape has been painted nicely over the last 6 mos. so they should come back in droves now that they are getting back to work (underemployment for many, myself included).  TD loves a nice narrative.

BTW, in FL recovery is here, at least to some degree.  Restaurants are packed and Home improvement stores are busy on the weekends.  Houses are being built in the top school district areas.  Home improvement stores were graveyards just 6-9 mos ago.

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