Inflation is here

[Passport1]

The common misconception is that inflation causes prices to rise. The actual reason is that as the money supply increases dramatically, the value of money inversely decreases so it takes more money to buy the product today than it did yesterday. It is really a very basic concept but economics revolves around human behavior and is an anathema to most people. For a chilling preview of where hyperinflation leads,

Get a copy of this book----->>

 

[PWMDMD]

The common misconception is that inflation causes prices to rise. The actual reason is that as the money supply increases dramatically, the value of money inversely decreases so it takes more money to buy the product today than it did yesterday. It is really a very basic concept but economics revolves around human behavior and is an anathema to most people. For a chilling preview of where hyperinflation leads,

Get a copy of this book----->>View attachment 69351

Right...inflation = devaluation.

$1000 in 1900 bought you A LOT more than it does in 2021.

 

[E365]

gas just bumped up to $3.25 gallon, was $1.95 this this last year, this is what happens when you shut down your own energy supply and rely on foreign countries to give you oil, plus all the FREE money that was thrown out to everybody

And the national average was $3.83 in Aug 2008. It’s far cheaper than it used to be. Things are cyclical, as they’ve always been. In addition, $1.95 is incorrect. The national average was $2.27 this time last year (during a period when most the world was shut down in a pandemic and gasoline demand was in a free fall).



https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

I remember just 2-3 months ago when people said lumber prices “would never come down again!! This is horrible!!”

An 8’ 2x4 at Menards peaked at $7.99 and is now down to $3.22. I looked up an old receipt and I paid $3.12 at Menards for the same SKU in early 2020. BFD.

 

[BMWTurboDzl]

gas just bumped up to $3.25 gallon, was $1.95 this this last year, this is what happens when you shut down your own energy supply and rely on foreign countries to give you oil, plus all the FREE money that was thrown out to everybody

Nope.

 

[Pew]

And the national average was $3.83 in Aug 2008. It’s far cheaper than it used to be. Things are cyclical, as they’ve always been. And, $1.95 is incorrect. The national average was $2.27 this time last year (during a period when most the world was shut down in a pandemic).

Yea, I took this picture in Spring of 2014 and I'm just happy I've never seen it that high again (comparing the price with the same Shell station.)

 

[wpod]

Where will we feel this the most?

Where the light usually doesn't shine , Trying to be polite. It really hurts.

 

[Jack Watts]

gas just bumped up to $3.25 gallon, was $1.95 this this last year, this is what happens when you shut down your own energy supply and rely on foreign countries to give you oil, plus all the FREE money that was thrown out to everybody

This does not in any way appear to be true: https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php

 

[PandaBear]

gas just bumped up to $3.25 gallon, was $1.95 this this last year, this is what happens when you shut down your own energy supply and rely on foreign countries to give you oil, plus all the FREE money that was thrown out to everybody

Last year the shale industry went bankrupt. After pumping out cheap oil and gas for a long time, the oil producer cut prices to compete, and then suddenly pandemic happens and we got negative oil price. Now that the bankruptcy happened, they stopped fracking new wells and prices go up.

You do not expect subsidized shale bubble to last forever, do you?

Guess what? Milk bubble is next or already here. Dairy farmers trying to go big or go home, and many decided to go big, and then many decided to dump the milk so they don't flood the market. Many are now bankrupt, and margins are finally above zero. It cost the farmer more than $1 per gallon so your $1 / gal milk is not sustainable, going above that is not inflation.

 

[CharlesInCharge]

I can say, anecdotally but factually, I have personally observed:
On or just prior to November 2020,
* gas was $2 per gallon, now it's almost $4 for the same fuel at same locations
* guns were about 30% cheaper.
* ammo was about 50% cheaper
* lumber was about 30-50% cheaper
* housing has gone up by about 30-50%
* grocery bill up about 10%
* lots of shortages in electronics and car parts, steel products, and much more. The car stereo I want it out of stock everywhere and has been for months. The steel shelving I want is out of stock and I'm lucky to find it in the used classifieds. Tires have been difficult to find in the size/brand I want.
* everything I want, the useful stuff, on the use market is 50% more expensive, car parts, electronics, steel items, etc.
* new cars, much higher and scarce inventory.
* used cars, the prices are obscene.

But I suppose that's just a big coincidence... lol ....

 

[Hermann]

Granted I don't buy industrial supplies or anything very important. In my purchases the past few months very few items have gone up in price. At Wal-Mart my breakfast sausage went from $3.80 to $4.00. Bay's English Muffins, no change. Fabreeze air fresheners, no change. The excellent when nuked for 10 sec small Apple Fritters in the Bakery, no change. Big Big of Wild Cherry Life-Savers have gone up 30¢. 1 lb of Farmland Ham Cubes for my ham and beans still $3.77.

Have not bought much beef lately as I stocked up last winter and spring. Only a couple purchases of 8 oz choice sirloin steaks. They were 3.98 each. Been that price for many years. I don't buy beef at wal mart, so the local Hy-Vee get some of my money. I have bought bacon for $2.99 lb twice recently.

My snooty hi brow coffee has gone from $34 for 2 lbs to $28
Could list many more examples. If something goes up too much "I Don't Buy It" I do without till I feel it is at a fair price, then I go try something else that is priced fairly. Recently discovered Street Taco. Good inexpensive eating. That is how you fight inflation. "Just say NO "

off soapbox

 

[PimTac]

how do you prepare for times like this? My instinct is to fill the pantry and buy household supplies etc right now.

If you have the room , start a garden.

 

[PWMDMD]

And the national average was $3.83 in Aug 2008. It’s far cheaper than it used to be. Things are cyclical, as they’ve always been.

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

I remember just 2-3 months ago when people said lumber prices would never come down again. An 8’ 2x4 at Menards peaked at $7.99 and is now down to $3.22.

I can say, anecdotally but factually, I have personally observed:
On or just prior to November 2020,
* gas was $2 per gallon, now it's almost $4 for the same fuel at same locations
* guns were about 30% cheaper.
* ammo was about 50% cheaper
* lumber was about 30-50% cheaper
* housing has gone up by about 30-50%
* grocery bill up about 10%
* lots of shortages in electronics and car parts, steel products, and much more. The car stereo I want it out of stock everywhere and has been for months. The steel shelving I want is out of stock and I'm lucky to find it in the used classifieds. Tires have been difficult to find in the size/brand I want.
* everything I want, the useful stuff, on the use market is 50% more expensive, car parts, electronics, steel items, etc.
* new cars, much higher and scarce inventory.
* used cars, the prices are obscene.

But I suppose that's just a big coincidence... lol ....

Yes, as has been stated the administration in office during 2020 pumped $4T into the money supply, which devalued the dollar, and now we have inflation. In comparison, the current administration has increased the money supply $1.1T So in an attempt to be fair, let's say the previous administration is responsible for 80% of the inflation and the current administration is responsible for 20% of the inflation that we see today.

 

[CKN]

I can say, anecdotally but factually, I have personally observed:
On or just prior to November 2020,
* gas was $2 per gallon, now it's almost $4 for the same fuel at same locations
* guns were about 30% cheaper.
* ammo was about 50% cheaper
* lumber was about 30-50% cheaper
* housing has gone up by about 30-50%
* grocery bill up about 10%
* lots of shortages in electronics and car parts, steel products, and much more. The car stereo I want it out of stock everywhere and has been for months. The steel shelving I want is out of stock and I'm lucky to find it in the used classifieds. Tires have been difficult to find in the size/brand I want.
* everything I want, the useful stuff, on the use market is 50% more expensive, car parts, electronics, steel items, etc.
* new cars, much higher and scarce inventory.
* used cars, the prices are obscene.

But I suppose that's just a big coincidence... lol ....

Some of the above items are a direct result of COVID (used car prices) while others (guns) are a direct result of emotions. And others still are driven by supply and demand (real estate). There is not "one particular guy" accounting for (some of) your list.

 

[PWMDMD]

Some of the above items are a direct result of COVID (used car prices) while others (guns) are a direct result of emotions. And others still are driven by supply and demand (real estate). There is not "one particular guy" accounting for (some of) your list.

But this doesn't fit with a certain narrative...

 

[CharlesInCharge]

Some of the above items are a direct result of COVID (used car prices) while others (guns) are a direct result of emotions. And others still are driven by supply and demand (real estate). There is not "one particular guy" accounting for (some of) your list.

So, can I go to XYZ seller and tell them it's just your emotions, I'd like 2019 prices please?

 

[CharlesInCharge]

Some of the above items are a direct result of COVID (used car prices) while others (guns) are a direct result of emotions. And others still are driven by supply and demand (real estate). There is not "one particular guy" accounting for (some of) your list.

True, but weird, most of these increases hit right around the start of 2021. How odd...

 

[JavierH19]

Well, it's obvious why this is all happening, so for those who caused it pat yourselves on the back. And that's all I'll say on the topic b/c our entire situation infuriates me.

so blame the Chinese government and the media for using it as an excuse to blame it on someone?

 

[jrvn]

This does not in any way appear to be true: https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php

botttom line what was the price of fuel this time last year

 

[macarose]

A lot of good pre-emptive defense can be played here...

Gas prices up? >>> Drive local and combine errands.
Eating out more expensive? >>> Make better quality meals at home.
The 'new thing' is more expensive? >>> Get the used version of it and do your research regarding quality and longevity.
Taxes are going up? >>> Appeal your property taxes. Use the public services available to you. Read up on dis-incoropration in your state.
Homes are more expensive? >>> Buy once and learn to take care of it.

Every week I see such an endless amount of free stuff on Facebook, Craigslist, Nextdoor, the post-yard sale dumping down the street.

What do we need? A good cheap water heater to replace the other good cheap water heater we bought 17 years ago. Or the furnace that can replace the older furnace at some point without breaking the bank.

Seriously think about it. You can drive a car that's over 20 years old these days and have it not feel or drive old. If we wanted to improve our standard of living, we would stop whining about crap and learn how to intelligently solve what comes our way.

Everything else is just distracted bullpucky created by a media machine in search of ratings.

 

[jrvn]