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Inflation Watch: Is The $5 Bill The New $1 Bill?

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

Events, food purchased away from home and live entertainment are increasingly unaffordable to the bottom 90%.

It's starting to feel like a $5 bill is the new $1 bill: everything that could be purchased with one or two dollars not that long ago is now $5 or even $10. A few days ago I was enjoying the Butte County Fair in California's farmbelt (the Central Valley), and it seemed like a rural county fair was a price baseline that was far enough away from the urban artifice of $100 meals at fancy bistros to reflect the statistically elusive real-world inflation.

Everything was $5, or close to it: the carnival rides for kids: $5. The games (ring toss, etc.): $5. Funnel cakes, cotton candy, etc.: $5.

Whatever wasn't $5 was $10: pulled pork sandwich, etc. There was almost no need for $1 bills, except at the admission booth: adults, $8/day, kids/seniors $4.

So let's add up the costs for a family of two adults and two kids. Let's say the kids each get four rides--that's 4 X $5 = $20 X 2 = $40. Each kid gets two food items: $5 X 2 = $10 X 2 = $20, and gets to play two games: $5 X 2 = $10 X 2 = $20.

That's $80. The parents get something to eat and maybe play a game or two: that another $40. The admission fee is $16 for adults and $8 for the kids, $24. Parking is $5.

The family spends about $150 at the county fair for a day. Add an extra kid or a few other purchases and the cost pushes up to $200.

This trend of $5 being the minimum purchase price and outings costing $200 is not unique to county fairs. Some friends attended a S.F. Giants baseball recently, and they were delighted to buy seats online for a discounted price of $64 each. Add in $25 parking (or $20 in BART train fare) and a few $10 cups of beers and $10 hotdogs, and it costs $200 for two people to attend a major-league baseball game (at least in a desirable locale with a winning team).

Now I readily confess to being frugal. Not making much money for extended periods of time tends to encourage frugality. Frugality is also only way most of us non-silver-spoon types can accumulate capital (savings) to invest in ourselves and our own enterprises.

$200 seems like a lot of money when I think of what else it can buy. $200 bought all the gasoline for our 2,000-mile camping trip last summer (our 1998 Honda Civic gets 40 miles to the gallon on the highway), and all the groceries for our household for a month (recall we have a garden, eat low on the food chain and shop almost exclusively at Costco and ethnic markets).

$200 will buy a new Skil 77 worm-drive Skilsaw ($149.99) or a new designer-label men's suit at a premium outlet (after being dragged to the outlet by foreign friends awhile back, I bought an excellent Calvin Klein suit for less than $200 that will last decades).

Meanwhile, earned income is declining when measured in purchasing power. The median household income in Butte County is about $43,000, and $54,000 nationally.

Courtesy of chartist extraordinaire Doug Short, here is a chart of the changes in median household income since June 2009:

How long can households afford $200 outings as their real (adjusted for purchasing power) incomes continues eroding?

We are constantly reassured that inflation near-zero--2% annually or less. On the ground, it seems that stuff manufactured in the global supply chain is still relatively cheap, as are energy and food, at least compared to what they cost elsewhere or could cost if supply chains get disrupted.

There are no limits on the cost of government services or government-controlled sectors such as healthcare. Our city garbage service fees just jumped from $356 quarterly to $453, a 27% increase. Note to Federal Reserve: 27% is not 2%.

Our monthly healthcare insurance (paid entirely by us, as we're self-employed) leaped $300 per month over the past few years, from $900/month to $1,200/month. These increases add up to thousands of dollars a year. That is not 2% inflation.

Clearly, healthcare, government services, events, food purchased away from home and live entertainment are increasingly unaffordable to the bottom 90%.

 

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Sat, 08/23/2014 - 17:57 | 5135207 trader1
trader1's picture

high click rate for a saturday evening ;-)

Sat, 08/23/2014 - 17:59 | 5135212 cossack55
cossack55's picture

Pre NFL

BTW, IMHO the $20 is the new silver dollar.

Sat, 08/23/2014 - 18:10 | 5135228 stacking12321
stacking12321's picture

no.

the silver dollar will retain its value, and probably increase quite a bit once the comex stranglehold is broken.

the $20 bill will just keep going down in value over time.

 

Sat, 08/23/2014 - 18:11 | 5135237 Skateboarder
Skateboarder's picture

This $20 silver era is a blessing for buyers. Gonna pick up an order today. Wish me luck on my boat journey home.

Sat, 08/23/2014 - 18:18 | 5135251 Supernova Born
Supernova Born's picture

A ten and a five in your wallet in 1967 had more purchasing power than a $100 does today.

If they don't increase the largest denomination of USD soon, cash will be as cumbersome to actually use for purchases of any significance as giant stone disks (but they don't want us using cash anyway).

Sat, 08/23/2014 - 19:37 | 5135447 0b1knob
0b1knob's picture

EBT is the new $1 dollar.   Usable at Pizza Hut and other fast food places.   

 

Sat, 08/23/2014 - 19:58 | 5135501 Manthong
Manthong's picture

Yes, and the dollar stores are the new five and dimes.

Sat, 08/23/2014 - 21:36 | 5135742 James_Cole
James_Cole's picture

Our monthly healthcare insurance (paid entirely by us, as we're self-employed) leaped $300 per month over the past few years, from $900/month to $1,200/month. 

1200$ a mo? Wow. So in sf if you're making 60k (med), taking home 4k/mo. Rent of what, 1600$? Left with 1200$, Car? Food? 

That's bleak, didn't realize healthcare was so expensive if self-employed. US still richest country in the world, citizens not getting much of that pie!

Sat, 08/23/2014 - 22:29 | 5135889 Manthong
Manthong's picture

In 1964 you could gas your car for less than 25 cents per gallon.. that’s one Washington 90% silver quarter dollar per gallon.

In 2014 you can still gas your car for one 90% silver Washington quarter dollar per gallon (after a stop at the coin store to swap them for FRN currency) even at todays suppressed silver prices.

Stick THAT in your rigged silver market price pipe and smoke it.

Sat, 08/23/2014 - 23:42 | 5136100 buyingsterling
buyingsterling's picture

We pay out the nose and our plan isn't acceptable to Mr. Obama, so we also get to pay a tax. 

Until government got involved in the 1960s, health care costs were rising in tanbem with inflation.

Sun, 08/24/2014 - 00:31 | 5136208 James_Cole
James_Cole's picture

Until government got involved in the 1960s, health care costs were rising in tanbem with inflation.

Yeah, except US&A is one of the few countries listed here which has not adopted a public healthcare model:

http://healthmodelinnovation.com/wp-content/uploads/2013/12/Healthcare-S...

I know y'all love wallowing in fantasyland bullshit but facts is facts. 

Sun, 08/24/2014 - 10:34 | 5136866 Parabox
Parabox's picture

Dont worry, we'll be there in ten years.  Mandated coverage structures, mandated "affordability", government controlled rate increases, and just wait until the 2018 cadillac tax effectively takes away the pre-tax payment advantages of group insurance.  It will be so bad the people will be begging for nationalization.  All by design.

Sun, 08/24/2014 - 10:53 | 5136908 jerry_theking_lawler
jerry_theking_lawler's picture

The fact is that healthcare should be paid for....not 'insured'.

Catostrpohic insurance for large expenditures....but if you wanna run to the doctor every time your have a runny nose...then you pay the full charges. Pretty simple system. But hey, I'm a dying breed of free-market capitalist.

Sun, 08/24/2014 - 15:16 | 5137560 James_Cole
James_Cole's picture

Pretty simple system. But hey, I'm a dying breed of free-market capitalist.

You're not a dying breed at all, people who believe in things for which there is zero evidence of ever existing is a growing demo. 

Mon, 08/25/2014 - 09:21 | 5140027 N2OJoe
N2OJoe's picture

Yourself being a prime example, and that's why I greened you.

Sun, 08/24/2014 - 01:07 | 5136258 mr. mirbach
mr. mirbach's picture

This video sums up the HealthCare issue in 2:15 - http://youtu.be/Q1cGZ-Xloec

Sat, 08/23/2014 - 20:31 | 5135591 Kirk2NCC1701
Kirk2NCC1701's picture

Just make sure you don't have a new C bill in your pocketses, wizard.

Or the All Seeing Eye of the Dark Lord will use it to track you, and have the Nazgul descent on you with a vengeance.

"One Coin To Rule Them All" - Rottenchild undead

Sat, 08/23/2014 - 19:24 | 5135421 cossack55
cossack55's picture

My point was that if $20 is worth $1 whats the big deal with a $5 being the new $1.  That was years ago.

BTW, paper (all forms, except in a 1000 sheet roll, sucks)

Sun, 08/24/2014 - 00:16 | 5136176 Bilderberg Member
Bilderberg Member's picture

I thought the $12 I paid for the burger and fries I got at tonight's Dolphins "pre-season" game was high but compared to the county fair it sounds like I got a good deal.

Sat, 08/23/2014 - 20:13 | 5135546 RafterManFMJ
RafterManFMJ's picture

Pseudo-food is cheap, and beer as well.

Phones can be free, and everyone seems to be able to afford cable.

Fill the gut with fake food and carbs, numb the mind with TV and GMO based beer.

But try to get something repaired or built - these costs cannot be hid nor the materials diluted.

3 estimates for a wood and chain link fence: 4400 4700 and 4900 dollars.

Awning for porch? 3200 prefab motorized or 4300 custom.

Porch redone and extended? 4500.

Everything you need to make you numb and dumb is cheap; but anything beyond that is rapidly climbing of of sight.

Sat, 08/23/2014 - 20:30 | 5135585 ObamaDepression
ObamaDepression's picture

Up arrow for accuracy for "Pseudo-food"

Sat, 08/23/2014 - 20:56 | 5135630 Wait What
Wait What's picture

"pseudo-beer" is cheap, indeed. but it's only in places like Ferguson that they drink the pop-brand lagers/malt liquors you can get for less than $5.

out in the normal world, i'm more surprised when I walk out of a pub with a bar tab < $50 (for somewhere around a 6 pack of premium ales) than when it's >$50, as I'm gearing myself up to tonight.

it's scary to think that even min. wages were sitting just above $3 when i was born, now up over 300%, nearing $10.

nah, no inflation anywhere. /s

Sun, 08/24/2014 - 02:23 | 5136338 Manthong
Manthong's picture

.

Sun, 08/24/2014 - 09:11 | 5136678 Agstacker
Agstacker's picture

I have a $20.00 bill from 1934, and if I go into a store today it is worth...$20.00.  Also, I like to read the part that has been removed from todays toilet paper currency, the part at the bottom that states "Will pay to the bearer on demand"

 

https://www.google.com/search?q=1934+20+dollar+bill&es_sm=93&source=lnms...

Sat, 08/23/2014 - 18:18 | 5135234 Supernova Born
Supernova Born's picture

Food prices are in a state of very obvious accelerating inflation.

Love how the central bankers keep finding new animal diseases, droughts and "natural occurrences" that are responsible when the real cause is simply out of control money printing.

Smaller sizes, lower quality, higher prices.

Sat, 08/23/2014 - 19:23 | 5135416 Buck Johnson
Buck Johnson's picture

Your right, we have accelerating inflation and I believe it will become hyperinflation.  I tell you when this happens it will implode the US and everybody will go nuts.

Sat, 08/23/2014 - 19:58 | 5135502 August
August's picture

Au contraire, when the US implodes, everyone will get a new grip on reality.

Unfortunately, this will not be fun for the whole family.

Sat, 08/23/2014 - 21:34 | 5135738 Bárðarbunga
Bárðarbunga's picture

Wife bought me a Party Size bag of Doritos (yeah, I'm a fat ass okay). Point is, this bag of chips is the same size that a "normal" bag used to be. Right now, if I can remember shit - a regular bag is like 9 oz. That's barely freakin' snack size anymore.

I'm not really sure of what the price of this Party Size bag amounted to - probably not much more than the regular size if one uses a store coupon; but holy crap. I'm not that old to remember what normal food (um, pseudo-food, sorry) used to look like in the cupboard. Now if you're clever you can cram in like six different bags of chips where three used to fit. Unfreakin believable.

Sun, 08/24/2014 - 14:27 | 5137445 Sages wife
Sages wife's picture

Just don't blow your top.  Oops, well there you go.

Sun, 08/24/2014 - 16:03 | 5137755 mophead
mophead's picture

When I used to post info on phoney diseases, droughts, shortages, and food contamination I'd get lots of thumbs down. Now it's thumbs up. Nice to see people are waking up.

Sat, 08/23/2014 - 20:44 | 5135611 Kirk2NCC1701
Kirk2NCC1701's picture

C'mon boys & girls, let's start with Basics and build from there:

ALL Fiat_Currency ("Money") are DEBT-NOTES.  In a monetary system of Fiat_Currency plus FRB, do you REALLY expect the value of that Debt_Note to be constant?  Well, do you, Serfs!?

There can be no broken camel backs w/o piling one straw after another on the camel. You then ease back from there, to determine max payload.  Get it Pay-Load?.  So it is with Serf_Notes:  Keep piling on this they squeal incessantly and are on verge of revolt.

Meet your New Feudal Masters: same as your Old Feudal Masters.

Sat, 08/23/2014 - 18:15 | 5135244 Cattender
Cattender's picture

i have said for years now the $50 is the new $20... sad as it is.

Sat, 08/23/2014 - 20:30 | 5135584 Cacete de Ouro
Cacete de Ouro's picture

When the Big Mac hits 5 bucks, there will be a wtf moment from the masses. When it hits 10 bucks, then we will see the beginnings of super sized anarchy

Sat, 08/23/2014 - 21:38 | 5135745 stacking12321
stacking12321's picture

anarchy is not mindless mob violence and looting.

anarchy is just the absence of government (coercive force).

if we truly had anarchy, there would be no central bank printing endless currency and causing high inflation, prices would likely be stable, assuming the market would choose an honest store of value such as gold/silver, which i believe it would.

Sat, 08/23/2014 - 23:51 | 5136123 WSMassiv
WSMassiv's picture

True that!

Sun, 08/24/2014 - 02:04 | 5136357 COSMOS
COSMOS's picture

Nah they will add more cardboard to the patty to keep the price down (ie sawdust), and shrink the size.  Heck one day you just will only get the cardboard box with the lettuce and ketchup inside and that is all you will eat, that will be your new Big Mac

Sun, 08/24/2014 - 14:16 | 5137418 hot sauce technician
hot sauce technician's picture

But Chomsky said we need a central bank for regulating monetary supply.

Sat, 08/23/2014 - 22:21 | 5135862 HumanResourceProblem
HumanResourceProblem's picture

Who can afford to go out on the town any more?

Sun, 08/24/2014 - 01:59 | 5136350 SAT 800
SAT 800's picture

Yes. next question?

Sat, 08/23/2014 - 18:04 | 5135214 Sudden Debt
Sudden Debt's picture

In europe it's so bad that when I only have 50 euro's in my wallet, it means it's time to go to the bank.

And now, also stuff that was free a decade ago doesn't only cost money but is expensive.
To park in my city, it costs 14 euro's for 4 hours.
Not including the gas it takes to drive to town.

And now they want kilometer taxes also, next to my roadtax.
And diesel.... Yeah... They'll increase taxes 20% on top of the rest of that... For the environnement... Yeah... Sure...

My country is now short 6000 euro's per working person. They need to find that money by years end.
So not only does everything cost more due to inflation, they constantly look for other stuff to charge you.

And even that I pay a 55% tax on my salary, a 21% tax on the good I buy that will soon rise to 22% and 15% on what I save....
Not including all of that...
If I need a government service THEY ACTUALLY CHARGE ME.FOR THAT ALSO!!! IT'S NOT LIKE THAT IS FOR FREE!!!

FUCK THAT!!!

Sat, 08/23/2014 - 18:13 | 5135240 Skateboarder
Skateboarder's picture

That sounds like rape. Get the hell out of there man.

Sat, 08/23/2014 - 18:44 | 5135311 negative rates
negative rates's picture

I think she's on her way down, the only question is how deep?

Sat, 08/23/2014 - 18:53 | 5135339 Flagit
Flagit's picture

...and go....where?

Sat, 08/23/2014 - 19:46 | 5135468 angel_of_joy
angel_of_joy's picture

Somewhere... else ?

Sat, 08/23/2014 - 21:00 | 5135653 Wait What
Wait What's picture

i'm thinking somewhere between Sibera-Mongolia might be the place to be. i've started to learn russian for just that possibility.

Sat, 08/23/2014 - 22:14 | 5135829 Manthong
Manthong's picture

And when you get all the way down there just try to steer clear of those molten lumps of Fukushima.

Sat, 08/23/2014 - 18:23 | 5135266 Dennisen
Dennisen's picture

Government
is the only institution
that can take a valuable commodity like paper,
and make it worthless
by applying ink.

Ludwig von Mises

Sun, 08/24/2014 - 14:35 | 5137474 Midas
Midas's picture

Ludwig sounds like a terrorist.

Sat, 08/23/2014 - 18:23 | 5135268 logicalman
logicalman's picture

Ditch the car, ride a bike.

Save a fortune, Get fit, Starve the beast.

3 birds for one stone.

By the way, I'm speaking as someone who does that, in North America, not Europe.

 

Sat, 08/23/2014 - 18:37 | 5135298 Sudden Debt
Sudden Debt's picture

I drive 150 kilomters a day for work :)
Sometimes more.

Sat, 08/23/2014 - 18:45 | 5135314 negative rates
negative rates's picture

They just proved driving is hazardes to one's health, welcome to the forward thinking crowd.

Sat, 08/23/2014 - 18:47 | 5135324 Sudden Debt
Sudden Debt's picture

It's also been proven that a man loses 20 braincells with every ejaculation after sex....

And even now I know this...

It won't stop me... AT ALL!!

Sat, 08/23/2014 - 19:56 | 5135498 negative rates
negative rates's picture

Oh she proved sex can be deadly in most cases, Now just how quickly can one bring on the insanity? Rather quick by our studies.

Sat, 08/23/2014 - 21:20 | 5135707 logicalman
logicalman's picture

You have to live with the consequences of the life decisions you make.

Don't whine about it, change it.

Sat, 08/23/2014 - 19:52 | 5135488 fibonacci's claus
fibonacci&#039;s claus's picture

do you sniff your own farts too?

Sat, 08/23/2014 - 21:22 | 5135708 logicalman
logicalman's picture

Do your two brain cells ever communicate with each other?

Sat, 08/23/2014 - 18:42 | 5135308 holmes
holmes's picture

Serfs in your Country were better off 400 years ago.

Sun, 08/24/2014 - 10:56 | 5136915 Martian Moon
Martian Moon's picture

Around 10-20% was what the average serf had to turn over for "protection"

Compare that to the modern ser - err - citizen

Sat, 08/23/2014 - 21:31 | 5135731 Kprime
Kprime's picture

damm, when are y'all going to revolt over there?

Sat, 08/23/2014 - 18:02 | 5135215 BadKiTTy
BadKiTTy's picture

Spot on.  Anyone reading this will have the had the same experience.  I live in the UK, to fill my car with diesel (audi A6) costs $174.00. Bargain. Tyres all round about $1600, had two bulbs replaced the other day at a dealer (whilst a big thing was being done under warranty) .....$88.00.  

So fill the car with fuel, buy 4 tyres and two bulbs ........$1862.00 US

I cant even believe I am writing this.......

Sat, 08/23/2014 - 18:11 | 5135235 stacking12321
stacking12321's picture

i recommend buying tires instead of tyres, they are much cheaper!

Sat, 08/23/2014 - 19:53 | 5135489 Amish Hacker
Amish Hacker's picture

And keep the spare in the trunk, not the boot.

Sat, 08/23/2014 - 18:12 | 5135239 Sudden Debt
Sudden Debt's picture

Smae here!
I also put 4 new tyres on the car because it's starting to rain again and i wanted a bit more grip, told them to check my transmission because of a small sound and do a checkup an change the oil...

780 euro's for the tyres, 60 euro's for the oil change... ?!?!?!?
1200 euro's for the transmission chack ?!?!?! WHICH THEY DIDN'T FIX!!!
I was like... WHAT?!?!?
2K in total while there wasn't really any big problem with the car?!?!

AND THAN THAT FUCKER FROM THE GARAGE WAS COMPLAINING TO ME THAT HIS BUSINESS WAS KIND OF SLOW!!

I'm really going to start looking for a non brand garage because it's just all starting to cost to much.

Arround march, and remember my car is 1,5 years old, my injectors all failled, all 4! 55k kilometers on the car!

And at the garage? "Oh yeah, that's normal these days with these cars. High tech but not strong enough for cars stronger than 2.4Tdi...

NORMAL?!?! That was 1800 euro's!

Sat, 08/23/2014 - 18:21 | 5135262 trader1
trader1's picture

sounds like you're pissing money away.

 

Sat, 08/23/2014 - 18:26 | 5135275 debtor of last ...
debtor of last resort's picture

I drive a Suzuki Alto for 3.5 years now. Bought it new, i drive about 4000 mpy.

The dealer called me and wrote me about 10 times the last 3 years to get me into the garage for maintenance.

Due to gdp boosting measures i have to go when my car 'hits' 4 years, by law, every car has to go through a checkup every year when it's older than 3 years. That's when the party starts. Fuck 'm, i'll go to a small garage and will stand next to that small metal dude as they 'look' at it on at least 63 points.

I say; fuck 'm. Everything above €200 only from my cold dead hands. Bitchez.

Sat, 08/23/2014 - 18:46 | 5135316 Sudden Debt
Sudden Debt's picture

I'm starting to develop a theory about cars.

Whenever you drive your car
And your car makes a sound...
A sound it normally doesn't makes...
The amount of decible is what sets the price for the repairs.
About 50 euro's per decibel...

And knowing that a fart makes about 50 decibels, it would mean that if your car makes a sound as loud as a fart... You just know it's going to cost you 2500 euro's...

And really... Just listen to your car... You can really predict the price of the repairs!

Sat, 08/23/2014 - 19:08 | 5135362 debtor of last ...
debtor of last resort's picture

Don't blow the horn SD. Netherlands, €340,- fee for a hornblow that's not 'appropriate'...

http://www.hoogteboete.nl/auto/bestuurder/boete-toeteren

Out of their fucking minds. And yes, Americans, don't think you're the only fucked up country.

Edit; btw SD, you should start worrying about the decibels of your comments..... ;-)

Sat, 08/23/2014 - 19:18 | 5135402 kowalli
kowalli's picture

They do the same in garage=)

Sat, 08/23/2014 - 18:45 | 5135317 NidStyles
NidStyles's picture

That's what you get for buying an Audi Group car.

Sat, 08/23/2014 - 18:48 | 5135326 negative rates
negative rates's picture

Have you got 2 strong legs??

Sat, 08/23/2014 - 18:32 | 5135283 logicalman
logicalman's picture

I'm a Brit, now living in Canada, but have a property rented out over there, so I have to go over reasonably regularly.

I have a Ford Fiesta over there, and when I tell Canadians what it costs to fill up, they usually a tad surprised.

Cameras fucking EVERYWHERE!

In the UK, distances travelled are mostly a lot less than in North America, so a bike is very practical.

The Average car sits parked for about 95% of its lief.

Cars are now just debtmobiles and tax collectors that need 'experts' to put air in the damn tyres these days, so you can't even fix 'em yourself if you want to.

Cost - Benefit analysis.....

Cost is way higher than benefit.

Why I don't operate one on a regular basis.

 

Sun, 08/24/2014 - 09:18 | 5136693 Lostinfortwalton
Lostinfortwalton's picture

You can still do a lot. I have a late model Acura and change the oil and filter, air filters, brake pads, spark plugs myself. Had a transmission go out within 100 miles and one week of the warranty expiration, so got a free tranny from the Acura dealer. Moral of the story - get a certified used car with the extended warranty and do what you can with maintenance. Monthly operating costs now about $200.

Sun, 08/24/2014 - 14:40 | 5137491 Midas
Midas's picture

I roll a 27 year old mercedes diesel that I fuel with vegetable oil.  I have 250 gallons in a tote in the back yard.  It is hammered and slow, but all these stories are making my beater sound better all the time. 

Sat, 08/23/2014 - 18:47 | 5135321 negative rates
negative rates's picture

I can't believe you got the year wrong.

Sat, 08/23/2014 - 20:27 | 5135576 mcbane
mcbane's picture

Wow. That makes U.S. car repairs seem cheap by comparison.

 

The last two cars I bought were $3,000, just twice what you paid for gas, tires, bulbs.

Of course, I am running old cars ...

I am going to stop complaining about my car costs.

 

Sat, 08/23/2014 - 23:03 | 5135991 Buck O Five
Buck O Five's picture

Fuck dealing with those new fangled cars.

Just get yourself a 1970's era Mini.

Fix it yourself, only tools needed are 4 spanners, 2 screwdrivers, a soldering iron, multimeter and duct tape.

Mine is halfway though its fourth trip around the odometer, and is still the most reliable car I own

Sun, 08/24/2014 - 08:08 | 5136598 Bunders
Bunders's picture

but you'll need tools in both metric and imperial

Sun, 08/24/2014 - 00:40 | 5136114 buyingsterling
buyingsterling's picture

$1862 for tires etc - that's almost exactly what the author pays, per year, for FUCKING GARBAGE COLLECTION.

Who is collecting the fucking garbage, neurosurgeons? We have two giant bins and pay $400/year. Even that seems excessive: They never spend more than two minutes at my place, once a week, that's about two hours manual labor for two guys, gas, plus rental of bins, capital costs - I'm getting somewhere near $400, but $1800? Fuck Me.

Sun, 08/24/2014 - 02:12 | 5136366 COSMOS
COSMOS's picture

Get a scooter, and get retreads for the tires, use hand signals instead of bulbs, wham now you have all this money left over dude, stop complaining and change your lifestyle.  You could be 1800 dollars richer hahahah

Sat, 08/23/2014 - 18:01 | 5135216 mr. mirbach
mr. mirbach's picture

More like the new $100 bill is the new $1 bill.  97% devaluation since the Federal Reserve Act. 

The looters are not just in Ferguson.

Sat, 08/23/2014 - 18:03 | 5135217 BadKiTTy
BadKiTTy's picture

Amen to that! 

Sat, 08/23/2014 - 18:26 | 5135273 Skateboarder
Skateboarder's picture

$100 buys you 10 six packs of beer today. What would the 1912 dollar have bought you, in terms of beer?

Sat, 08/23/2014 - 18:38 | 5135301 hairball48
hairball48's picture

Dunno about 1912, but in 1967 a dollar would buy you seven 7oz glasses of draft beer at Maloney's Tavern in Margate, NJ.

Sat, 08/23/2014 - 19:00 | 5135360 Skateboarder
Skateboarder's picture

And now I tip a dollar every time I buy a five dollar beer.

Sat, 08/23/2014 - 18:45 | 5135315 Matt
Matt's picture

http://siba.co.uk/2012/03/3d-a-pint-offer-as-brewery-commemorates-stoke-...

3d for a pint in 1912. Not certain, but I think that's 3 cents equivelent, so about 33 pints for a dollar?

Sat, 08/23/2014 - 18:03 | 5135219 Tegrat
Tegrat's picture

"bought an excellent Calvin Klein suit for less than $200 that will last decades"

 

Ruh roh, that means an ounce of gold is worth $200.oo

Sat, 08/23/2014 - 18:18 | 5135252 Skateboarder
Skateboarder's picture

Prefab =/= tailored. Show me even a third world country tailor who will stitch you a fine suit for $200 including materials.

Sun, 08/24/2014 - 00:46 | 5136227 buyingsterling
buyingsterling's picture

l'dol, great sarc

Sat, 08/23/2014 - 18:05 | 5135223 Smiley
Smiley's picture

Forward!

Sat, 08/23/2014 - 18:11 | 5135233 Adahy
Adahy's picture

Minimize.
Grow your own.
Do it yourself.
Enjoy your time and the people that you share it with.
You don't really have a choice; it's only a matter of time anyway.
Might as well do it voluntarily now and get a head start.
Worked for me anyway.

Ok, that's enough serious for today.
Wado

Sat, 08/23/2014 - 18:13 | 5135238 stant
stant's picture

Gona buy some more confederate$. They are going up. About 5 us for 1 csa. Also I knew the fellow with the big collection that was just in the wsj

Sat, 08/23/2014 - 18:19 | 5135255 logicalman
logicalman's picture

Any day now, the value of the US dollar will be the same as a 1900 penny.

I think it's just under 2¢ to the dollar right now.

 

Sat, 08/23/2014 - 18:23 | 5135270 83_vf_1100_c
83_vf_1100_c's picture

Luckily wages are keeping pace with inflation. Yes, sarcasm.

Sat, 08/23/2014 - 18:31 | 5135274 Al Huxley
Al Huxley's picture

You must be mistaken, all the official statistics say there is almost no inflation.  It's understandable, though - I make the same mistake every time I buy food.  I see the price is up 10 or 20% and think 'wow, inflation's pretty bad'.  But then I catch myself and say 'nope, no inflation, this must be some other phenomenon'.  Damn good thing too, because I don't know how I'll be able to afford to eat if we ever start to get inflation, what with all the current price increases I'm already dealing with.

Sat, 08/23/2014 - 19:32 | 5135439 klockwerks
klockwerks's picture

Then when you open the bag, box whatever, it is now 1/3-1/2 full. Gotta keep that shelf space with size. I keep a large stock pile of supplies, can't imagine why, and I noticed when I bought a large package of Ivory soap I checked my backstock and they have reduced  the bar of soap size by 1/3. Guess that is not inflation

Sat, 08/23/2014 - 18:34 | 5135282 CHX
CHX's picture

5 $ for a cotton candy? Oh boy, end of the road is approaching fast now. Any signs of 5$tores yet ?

Sat, 08/23/2014 - 19:49 | 5135475 Colonel Walter ...
Colonel Walter E Kurtz's picture

I expect soon.

Aren't the wall street bastards falling all over themselves trying to buyout each others Dollar stores? You know...so that the public can have more competition in the retail sector.

Sat, 08/23/2014 - 21:20 | 5135703 Kprime
Kprime's picture

$5/$10 is the new Five & Dime.

Sat, 08/23/2014 - 18:33 | 5135286 robertocarlos
robertocarlos's picture

Sorry but food and entertainment away from home should be a non-issue for poor people. They are better off without those 2 wastes of money.

Sat, 08/23/2014 - 18:34 | 5135288 Shed Boy
Shed Boy's picture

WOW! Your fair is expensive! Our county fair is free. For $10 you can buy enough food to puke in the hog pens. The only ride was a free ride of carts pulled behind a tractor. A lot of the entertainment was free too. The Monster Truck show was $10. I entered a bunch of stuff this year and made $25 in winnings. Theres California style county fairs...then theres country style county fairs. Think the California version is a bit more like disneyland....expensive!

Sat, 08/23/2014 - 19:08 | 5135386 NidStyles
NidStyles's picture

I grew up in the country, and your fairs sound even more pathetic than mine were.

Sat, 08/23/2014 - 21:18 | 5135699 Kprime
Kprime's picture

note: you have just awoke from a 30 year coma. don't go out of your room.

Sat, 08/23/2014 - 18:34 | 5135291 northerngirl
northerngirl's picture

Have to wonder where the breaking point is?  

Sat, 08/23/2014 - 19:52 | 5135331 Supernova Born
Supernova Born's picture

I wonder who wrote the book of love.

Sun, 08/24/2014 - 02:58 | 5136416 xizang777
xizang777's picture

I don't know who the author was of that book.   I drove my Chevy to the levy, But the levy was dry.   So I went over to Winslow, Arizona and stood on the corner.   Saw some chick driving a flatbed Ford.  She slowed down to take a look at me, she did.

Sat, 08/23/2014 - 18:49 | 5135312 alexcojones
alexcojones's picture

You Are Really OLD (like me) if you remember

15 cent hamburgers, 15 cent movies as a kid, 50 cents adult.

Gas cost 25-30 cents a gallon unless a gas "war" sent the price to 20.

Oil was $2 a barrel. Postage was 4 cents. Interest on Savings at the bank was 4%.

Coke in glass bottles cost 10 cents and deposit on same bottle was 2 cents.

No SWAT teams and The Great Society was not yet invented.

 

 

Sat, 08/23/2014 - 21:22 | 5135710 Quaderratic Probing
Quaderratic Probing's picture

I remember those prices and I made $1.45 per hour.

Sun, 08/24/2014 - 02:54 | 5136411 xizang777
xizang777's picture

And a new 1964 Ford Mustang cost $2500.  I couldn't afford one, so I drove a 1964 Ford pickup truck.  Black with chrome wheels and bumpers.

Sat, 08/23/2014 - 18:44 | 5135313 Everybodys All ...
Everybodys All American's picture

My question is when the Federal Reserve chair holds these pressers why doesn't one of the many financial carnies with the mic charge Yellen with treason and say you are f'ing lying about inflation. Now that would be worth the price of admission.

Sun, 08/24/2014 - 04:35 | 5136467 Not Goldman Sachs
Not Goldman Sachs's picture

Because they would lose access. Gotta play to play. It is a sham and shame.

Sat, 08/23/2014 - 18:48 | 5135330 Bossman1967
Bossman1967's picture

Are we just figuring this out? Do like my family stop going out and help this collapse along. Some of us are prepared and would look forward to a reset after the animal freeloaders get done raping and pillaging like Furgesson. Sorry for my truth and let the red down fly

Sat, 08/23/2014 - 18:54 | 5135344 alexcojones
alexcojones's picture

A Mars Bar (Snickers, Milky Way) cost a nickel in the Sixties.

Minimum wage was $1.25.

So today Min wage should be the equivalent of 25 candy bars.

Sat, 08/23/2014 - 18:56 | 5135351 q99x2
q99x2's picture

You the FED is lying when they pass the basket at AA meetings and say, "please be aware that a dollar doesn't go as far as it used to M'Fers."

Sat, 08/23/2014 - 20:00 | 5135508 negative rates
negative rates's picture

They don't talk about that any more, positive only talk, and then when yer on the wrong side of the grass, it's game on.

Sat, 08/23/2014 - 18:57 | 5135353 Phillycheesesteak
Phillycheesesteak's picture

The only reason food concessions are so ridiculous is because there are enough fools willing to pay the price. A hot dog costs them less than a quarter. Anyone willing to pay $5 is a fool.

Sat, 08/23/2014 - 19:15 | 5135397 thecrap0n
thecrap0n's picture

Starbucks got rich based on the same premise.

Sat, 08/23/2014 - 19:01 | 5135364 atthelake
atthelake's picture

Vote against incumbants.

Sun, 08/24/2014 - 02:49 | 5136405 xizang777
xizang777's picture

Re-elect NO ONE.

 

I am voting Libertarian from here on.

Sat, 08/23/2014 - 19:04 | 5135375 q99x2
q99x2's picture

Everyone can still afford a gun and bullets. We are going to be ok.

Sun, 08/24/2014 - 12:05 | 5137092 mastersnark
mastersnark's picture

God bless Savage and Marlin for keeping rifles available for around $400 out the door.

Their name will one day be spoken with reverence by minimum wage apartment dwellers who can defend their portion of the post-collapse America with something other than a steak knife tied to a broom.

Sun, 08/24/2014 - 14:33 | 5137470 hot sauce technician
hot sauce technician's picture

+1

You're a funny man.

Sat, 08/23/2014 - 19:06 | 5135376 alexcojones
alexcojones's picture

Average cost of gas in Mid Sixties? 30 cents.

PRE Vietnam War

MARY BRASWELL: Looking back at life in 1914, 1939, 1964 

   "1964 marked the end of the post-war Baby Boom which saw over 77 million births in just 18 years. The average annual income was about $4,600. The average new car cost $3,500 while a new home averaged $20,000. A gallon of milk was 49 cents while a gallon of gas was 30 cents."

Minimum wage was about FOUR times the cost of a gallon of gasoline. Try that today.

Sat, 08/23/2014 - 19:09 | 5135390 Dr. Engali
Dr. Engali's picture

Gas is still about .30¢ a gallon today when priced in silver.

Sat, 08/23/2014 - 19:54 | 5135395 Supernova Born
Supernova Born's picture

The world economy can only sleep with the aid of baseless fiat propofol.

No worries.

Sun, 08/24/2014 - 09:18 | 5136691 Agstacker
Agstacker's picture

I like to read LBJ's comments on how hoarding silver coins will not result in a profit :)

 

http://www.presidency.ucsb.edu/ws/?pid=27108

Sat, 08/23/2014 - 19:13 | 5135394 alexcojones
alexcojones's picture

Sudden Debt, Mi Amigo:

You need to find another country, Pronto!

Arizona will take you here, senhor; You Speak Spanish, Amigo?

No CC needed, Open All The Way.

Sat, 08/23/2014 - 22:24 | 5135873 BooMushroom
BooMushroom's picture

Spanish or Portuguese?

Sat, 08/23/2014 - 19:13 | 5135396 I Write Code
I Write Code's picture

A quick sit-down lunch in 2001 was about $10 including tip, now it's about $20, making real inflation about 5%/year.  Wages available in my jobs has at best stayed flat and not kept up with that at all.

Supernova said $15 in 1967 is less than $100 today - I say MUCH less.  I use a 10:1 deflator even from 1975.  College tuition is up 10x since then, real estate prices at least 10x, average car prices about 10x.  Official deflator is less, Supernova might be right around the official numbers, fwiw.

Sat, 08/23/2014 - 19:48 | 5135471 Supernova Born
Supernova Born's picture

Per https://www.minneapolisfed.org/index.cfm?&TC=1

$15 in 1967 had the purchasing power that $106.14 has today.

I have no doubt the Fed grossly lowballs inflation.

 

Sun, 08/24/2014 - 14:45 | 5137504 hot sauce technician
hot sauce technician's picture

Fucking sheeple accept these price increases as something natural. Like there's supposed to be inflation. As if currencies are meant to go dkwn in value as time progresses due to some mysterious law of economics, which they have no inclination nor aptitude to contemplate. Ironically many of these same sheeple are invested in hard assets, which will allow them to weather the fiat shitstorm when it hits. Interesting times indeed...

Sat, 08/23/2014 - 19:32 | 5135437 NoWayJose
NoWayJose's picture

County and state fairs exist to make money. I gave up on them years ago after a similar wallet-draining experience to the author's. I am also close to ending 'fast food' runs too, as there are so few 'deals' for anything under $5.00. A fast food meal for $10 a person is not a 'deal'. In mid-scale restaurants I am seeing prices remain steady in the teens but portion sizes have shrunk dramatically. No more leftovers to eat for lunch the next day. Add in the growing concern over 'what' you are eating at restaurants.

Sat, 08/23/2014 - 20:08 | 5135533 klockwerks
klockwerks's picture

Went to one of the Texas chain restaurant the other day and ordered the meat loaf. Have had it for a number of years and was always good. My wife and I both ordered it and when we tried to eat it found out it was mostly loaf with very little meat and left most of it uneaten. Haven't been back since. Our trips out to eat have shrunk to once per week and just a salad at 3.79. Not hurting for money just can't find value anymore, to cheap and I have to freezers full of quality food all vacumed packed

Sat, 08/23/2014 - 20:23 | 5135569 Supernova Born
Supernova Born's picture

The quality of fast food that can be served profitably went below the "healthy, wholesome and nutritious" threshold years ago.

What can be profitably served today is moving below the "edibility" threshold and even many teenagers recognize it.

 

Sat, 08/23/2014 - 22:31 | 5135901 cynicalskeptic
cynicalskeptic's picture

Fast foods are using sawdust - literally ('micro-cellulose') as filler now in pretty much EVERYTHING.   Haven't eaten in a fast food place in almost a decade now - even when ther aren't any other options.  My stomach can't take it.

Sat, 08/23/2014 - 20:48 | 5135623 potato
potato's picture

Here are some staple food items that will feed a bodybuilder, that are cheap & healthy, and whose quality isn't compromised:

canned beans, whole milk, quick oats, honey. Buy cheap meat and bones and make soup out of it to mix with the beans. Make this 80% of your diet and you'll live and grow old until you get hit by a bus. 

Sun, 08/24/2014 - 02:06 | 5136361 duck dodgers
duck dodgers's picture

Awesome dude.

Sun, 08/24/2014 - 03:08 | 5136426 zebrasquid
zebrasquid's picture

I'd rather die young...

Sat, 08/23/2014 - 19:45 | 5135464 fibonacci's claus
fibonacci&#039;s claus's picture

tyler's got it all wrong.  The hundred is the new twenty.  WTF can you buy with a dollar anymore???  I remember when you could work all summer and have enough to buy new clothes, pay your college tuition, .......  I remember when you could raise a family with a double income.  Now you can't even raise your family with the wife working.  Thanks .gov  Thanks fed reserv  F u!

Sat, 08/23/2014 - 20:44 | 5135617 potato
potato's picture

$100 buys you a small paper bag of groceries in places like CA and NY. And you pay extra for the bag. Haha suckers

Sat, 08/23/2014 - 19:48 | 5135477 Magnum
Magnum's picture

Consumer price is one thing, and I share this author's disgust with high priced family events.

On a related note, I own a manufacturing company and the big retailers who have near monopoly control over are pushing for low prices like never before.  Five dollars? Try $1.00 what they pay for a product selling on their shelf for $5.  Brutal.  

Low quality is the only way to play.  Even the local homegrown competitor of Whole Foods, sporting a board of directors that includes Afro royalty and Bolivian fair trade union types, they're support of locally made products is all superficial except for a few lucky farms.

Ironically I am having more success manufacturing locally a superior product, and selling "Made in USA" quality promise to China.  Lucky for me I have there wherewithall and contacts to make it happen.

 

 

Sat, 08/23/2014 - 20:06 | 5135530 August
August's picture

>>>Low quality is the only way to play.

I'd suggest adding a judicious amount of lying and violence, but the violence is mostly a public-sector thing.


Sat, 08/23/2014 - 19:58 | 5135500 fibonacci's claus
fibonacci&#039;s claus's picture

Ya.  I am fed up with this fabian socialist euro bs.  Get the f...k out of my life .gov !!!  NOW!  the intelligence community runs the govt.  Voting is so 2012

Sat, 08/23/2014 - 20:03 | 5135518 steelrules
steelrules's picture

If you measure the $5 bill in tobacco it's the new 50 cents, mesure the $5 bill in gas it's the new 25 cents.

Sat, 08/23/2014 - 20:05 | 5135528 fibonacci's claus
fibonacci&#039;s claus's picture

I was going over my student debt.  Looks like the school embezzled at ton of money.  I cant get the numbers to come out right.  It looks like the school took twice the money they said they gave me to get my degree!  University is definitely a racketeering scam.  The govt gives them all this student loan money and they raise tuition 10% a year for the last 25 years! 

Sun, 08/24/2014 - 08:49 | 5136640 Lostinfortwalton
Lostinfortwalton's picture

Fees. The universities could give lessons to the airlines on imposing fees. I think my old State U is now up to an average of seven or eight fees per student per semester. Adds another couple of thou to the costs.

Sat, 08/23/2014 - 20:16 | 5135552 flyonmywall
flyonmywall's picture

Exactly right. The dollar is losing purchasing power every month.

Try $1.69 bell peppers, and boxes of cereal that are still the same price, but have lost 30% of their content, and kept the same box size.

It's pretty obvious what is going on, if you pay attention. Sadly, most people do not. Zero Hedge is an exception.

Soon, people will wonder why it is that they will go hungry at the end of the month. Then the party will really start. Remember that any country is 6-9 meals away from anarchy.

 

Sun, 08/24/2014 - 00:06 | 5136156 cornflakesdisease
cornflakesdisease's picture

Bell peppers in Texas are .58 cents

Sat, 08/23/2014 - 20:43 | 5135608 potato
potato's picture

Fuvck everybody who pays 30-40% of their income in rent.
How deep do you have to have your head up your ass to pay that!!

Screw everybody who drives more than 10 minutes to work. Let me spell it out: YOU'RE TRAFFIC.

What the FVCK are you buying at the goddamned mall at 1pm on a TUESDAY. Get a JOB or work to gain SKILLS.

Taxes and fees are out of control. Garbage, water, sewer, mobile phone bill tax, sales tax, nuclear surcharge, a billion other surcharges, $4 per pack smokes, scotch for $70... The less you spend, the less you feed the system. Hunker down, work two full-time jobs, and GTFO!

Sat, 08/23/2014 - 21:16 | 5135692 SantaClaws
SantaClaws's picture

Recall that a large section of the public pays next to nothing for anything.  EBT cards, welfare, Section 8, alleged disabilty, free healthcare.  In Massachusetts, several years ago the state provided welfare recipients with cars so they could look for work.  It may still be going on there.

 

And others somehow collect all of the above and also earn money through legitimate jobs or something else -- dealing drugs (often very profitable), robbery, theft, identity theft.  Their standard of living is probably higher than that of those who work.  Escalades and Lexuses dropping off shoppers with EBT cards.  And all of this seems to be getting worse.  Thanks to all of the "progressives."

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