How can they say that inflation is next to 0%????

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  #1  
Old 10-30-12, 08:58 PM
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How can they say that inflation is next to 0%????

I keep hearing these stories how inflation is under control and is in the low single digit numbers. I call hogwash because its killing me at the grocery store. Ground Beef 73/27 @$3.29 lb ON SALE, Bacon way over $4.00 lb, Bread $2.59 loaf, and I need to visit my banker to make a purchase of coffee.

What gives, who is coming up with these inflation numbers? Is it the same outfit that calculates the unemployment numbers (that magically dropped 2 weeks before the election)?

My SUV has a 30 gallon gas tank, thats over $100 a fill-up. I have a gas station at the corner of my subdivision. I put $35 in the tank every other day. I spent the same as if I filled up, but it doesn't seem to hurt as bad when you hand over only $35 at a time.

They need to quit turning corn into fuel and instead feed it to the animals to bring down the cost of producing many of the things we eat. And they need to give a wide open pass to energy producers to go wild for 1 year. The panic will drive the price of gas down to $ .99 gal in months and teach the oil speculators a little lesson in buying low and selling high (or vice versa).

I'd love to spend my money to help boost this economy, unfortunately, 7-11 and FoodLion get the majority of it every week.
 
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  #2  
Old 10-30-12, 10:40 PM
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There is no question in my mind that the inflation figures are artificially manipulated to make them show low inflation. Part (most?) of the problem is that there are too many "durable goods" and not enough commodities on the list and that different items are "weighted" differently in the full analysis.

For example, energy costs are either not used at all or are fairly lightly weighted (considered) while the cost of automobiles and refrigerators is given a much higher weighting. On the other hand, building materials are lightly weighted. A few years ago I bought a couple of spools of copper wire for $40 a spool. The last time I checked it was selling for around $55 a spool.

But, the cost of refrigerators today is close to the same as refrigerators were five years ago and the cost of automobiles hasn't risen all that much. But groceries in general have risen astronomically. You wrote that a loaf of bread cost you $2.59 and all I can say is you must buy the cheapest bread on the shelf. The bread I buy is well over $4.00 a loaf and they are only one-pound loaves. I only buy a local premium bacon but it is over $6.55 a pound. Of course one of the reasons for high grocery prices is the cost of transportation which is high because of the high prices of fuel.

Now I only know about myself but I don't buy a new car or a new refrigerator every month but I DO buy groceries and gasoline for my car. Add in the electricity and natural gas for the home and it is as plain as the nose on your face that costs have risen substantially, especially when considering the very low increases in wages or earned interest.
 
  #3  
Old 10-30-12, 11:43 PM
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I agree with you Furd some of it is political no doubt about it but most of it is in transportation costs to and from wherever the food product is being made. If you talk about large companies like take for instance Kelloggs then there is the advertising cost to get you to buy whatever it is. If the food is say bran flakes and they really want to impress the importance of eating their bran flakes then the cost of those bran flakes will go up at least for a while until Kelloggs gets the impression that no one wants their bran flakes and then the price goes down.
Then too you have the big corporate types of grocery stores like Safeway that are coast to coast so they need to advertise in stores and making the advertising signs isn't cheap. All grocery stores or at least most of them try to steer you to certain parts of the store by putting displays up so you will stop by the display and hopefully you will buy something. If you don't then eventually whether you are Safeway or some other store you will no longer be in business.
I agree with you though czizzi I think they need to stop making ethanol too but not for the same reasons as you but rather because it requires a great deal of energy to make corn into fuel and the economics really isn't there yet they still do it. The big reason behind it is to help the farmers and that leads to the next equation in the puzzle of high prices and that is farm subsidies are down and that has really hurt the farmer because of the poor growing season we had this summer because of the drought.
 
  #4  
Old 10-31-12, 09:03 AM
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The panic will drive the price of gas down to $ .99 gal in months and teach the oil speculators a little lesson in buying low and selling high (or vice versa).
Unfortunately, the ones to get hurt are the drilling companies and oil companies with the land leases. This is what is happening with natural gas. They have flooded the market with supply and the price has dropped so low, they are losing their shirts. They can't even make their lease payments.
 
  #5  
Old 10-31-12, 10:25 AM
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I highly doubt any of this has to due with politics. Heard it said that companies aren't expanding, modernizing equipment, growing in any way nor hiring additional employees because they need to know what the future holds for them in areas of regulations and taxes.

HOGWASH and B/S!
If that where true and the real case, then does that imply businesses and companies turn away (say no) or turn down new orders, higher volumes of additional orders for products they make and or turn away new clients until they know what party will be elected into office and what the regulations and taxes will be??? As if magically some how over night they would change??? REALLY??? Personally, I NEVER turn down any new client or customer ever. Would you as a business owner ever do so?????

I know of no business or company that does such. Imagine, if you will, any business or company refusing new or additional clients, customers or an increase in orders for anything to provided. Simply doesn't make sense to refuse any of such. Be like saying to a potential new customer or new client go see a competitor. I can't take on your business until ofter this coming election.

Additionally and Furthermore, what happens if the present president does get reelected??? Wait another four years???? Oh Really. Yikes...

I agree. Stop turning corn into oil and start feeding farm animals. Provide aid to the farmers first. Corn into oil produces little result and cost to convert corn oil is to high... Can't even find yellow corn on the cob in the markets nor yellow corn for bread baking in a market. The majority of yellow corn going to oil producers and not bread manufacturers causes high bread prices we all pay. One factor. Another is drought conditions and I agree with that aspect also.

In so far as oil drilling, news reported more oil drilling permits issued now then have ever been issued in the past. Also note on the governments web site. Therefore, not a political issue either. Simply a matter of costs to obtain oil (drilling costs) versus costs to sell. Higher at the pump prices has made it worth while more so to explore, drill and extract raw crude then any time prior. The facts all prove it too.

Regarding Wall Street speculators. Take gas oil and energy out of the world markets and off wall street totally. Americas vital interests and vital commodities should never be opened to market forces nor foreign speculators or investors ever...:NO NO NO:

My Few Pennies Worth...
 
  #6  
Old 10-31-12, 12:29 PM
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Maybe I was a bit aggressive with gas going to $ .99 gallon, but that is what it was here in SE Va. back in 2000-2001. By the summer of 2004 it had risen to $1.69 per gallon (I checked some paperwork from back then). It held pretty steady at under $2.00 gal for the most part through 2009. There was one spike that took it up to $3.50 gal. but that only lasted a month or two until Bush opened up more areas for drilling, spooked the market which saw tight supplies loosen, and down below $2.00 the price went.

Post 2009 with this administration tightening and restricting drilling on public land, the price has stayed pretty steady in the high $3.00 range. The speculators are betting on "future" gas prices based on supply and demand. Restrict the supply and the price stays high, increase supply and the price comes down. Production needs to also keep up or exceed demand for the supply to increase. Just because we are pumping more now (on private land) doesn't mean we are keeping up with demand (which is a global entity).

As far as natural gas suppliers being hammered. It takes time for usage to catch up to supply. As prices lower for natural gas, and electricity increases, it becomes favorable to switch from (in my case) a heat pump to natural gas. Its also a huge investment to upgrade your HVAC system in your house. In my case, it may be several more years before the useful life of my equipment ends and I need to make that decision. We also aren't building new housing like we used to be. The supply spiked rather quickly with the introduction of fracking compared to the demand side. It will even out with time. It also assumes we were not supplying 100 of demand at the old price, which we were. So this new found technology immediately contributed to excess capacity. To move it, prices come down.

Would like to see some excess capacity on the gas end.......

I know I have an economics degree, but boy can this stuff get dry.......sorry.
 
  #7  
Old 10-31-12, 02:26 PM
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My overall problem is not whom or who nor which party happens to be in the white office, IMO. It's congresses failure to act in Americas best interests. Which would benefit everyone in America.

Thus far congress has spent dam near all 4 years party politicking, obstructing, paying far to much attention to there party's interests, 4,000 lobbists, etc and have accomplished dam near nothing. All we tax payers get is lip service and political BS.

All the while collecting their huge salaries we tax pays pay them to get dam near zero in our or our countries best interests done! Haven't even heard the phrase bring home the pork!!! Where is the pork (Bacon?) for us local constituents???

And let us not forget all their benefits while in office they get and what they get as life long benefits after they get voted out or term limits end their stay.

Part of the gasoline at the pump prices include local sales taxes and state taxes. Here we have both plus federal tax, etc.

BTW: Oil permits issued at the federal level are the highest ever issued. Read the stats on the government site. Might not apply to private lands for some other reasons, etc. Same might apply to natural gas permits, etc.

Think we already beat this horse??? (subject) to death...

 
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Old 10-31-12, 05:17 PM
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Maybe I was a bit aggressive with gas going to $ .99 gallon, but that is what it was here in SE Va. back in 2000-2001. By the summer of 2004 it had risen to $1.69 per gallon (I checked some paperwork from back then). It held pretty steady at under $2.00 gal for the most part through 2009. There was one spike that took it up to $3.50 gal. but that only lasted a month or two until Bush opened up more areas for drilling, spooked the market which saw tight supplies loosen, and down below $2.00 the price went.
I think you have your time line messed up, Yes, gas was below $1 per gallopn in the late 90's. It began to climb after sept 11 and didn't stop until the fall of 2008 when the stock market crashed. The the price plummeted into the spring of 2009 and then began to climb again
. Please note that Obama took office in 2009.
 
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Old 10-31-12, 07:00 PM
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OK - I call Uncle on the gas thing....not my original beef other than it is a big expense for me and others. Didn't mean to stir the pudding or get anyone defensive. Also didn't mean to invoke polictics into anything, we all see things differently.

I was mostly commenting on how expensive everything has gotten yet we do not hear squat about it in terms of inflation. There is also the product downsizing thing where the price stays the same and the packaging gets smaller. That is a hidden form of inflation that doesn't show up on any of the books.

My Mom passed in 2007, and before that, she thankfully put together a recipe book with all the family favorites that I could pass on to my kids. One recipe calls for "3-6 1/2oz. cans Tuna Fish", those cans are not 5 oz. Wondering how much smaller they can go. Your hard pressed to get one sandwich out of a can. Its no wonder to me why 90% of the things in my pantry do not have a brand name on them.
 
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Old 10-31-12, 09:49 PM
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I don't like the downsizing of items either. I make one of my own examples and that was trash bags by a major manufacturer. I can't remember the exact size of box these kitchen bags had been a few months ago but let's say it was 380 bags well that was downsized to 375. Now you can say that isn't a big deal no it isn't but I am still paying the same price or more for less trash bags.
I don't blame the company though as their costs have gone up and I imagine to help keep as many employees as they currently have they decided to either downsize the bags or downsize on their employees to cut on costs. I personally would rather have fewer bags than see people lose their jobs but it still hurts having to have to buy less of something for the same or a higher price. Some of that has to do with more government regulation that has been imposed of late that more than likely isn't required.
 
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Old 11-01-12, 06:19 AM
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Best example of product downsizing is toilet paper rolls. Notice how each roll is smaller width wise? Noticeable when installed on the roller tube of the holder. Paper holder is same size length wise as in older days or years prior.

Paper roll not so. Get same volume (# ='s number) of sheets or sections per roll as prior but the DAM roll is not as wide as prior... IMO toilet paper is a perfect example of paying more but getting less....

I know of no government regulation that effects product size. Certainly not Toilet Paper... Quality yes. Or maybe for some products not consumable.

Safety yes. Government oversight required. Especially eatables and medicines. Neither of which I nor you nor anyone else can test for safety to consume. We all need government to test for internal usage or consumption. If a consumable product looks safe that does not mean it's safe for human consumption.

Cook foods well. The bacteria you kill cooking may save your life.... That shot you got at the doctors may kill you too!!! Might not be safe and the public has no means to test it before hand. Government oversight (regulations) required and should IMO regardless of costs.

 
  #12  
Old 11-01-12, 02:48 PM
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I agree some government regulation is good such as the example of medication and food oversight that is extremely important. There are some regulations though that are just ridiculous and don't really help people they just get in the way of business operating smoothly. One example of that is pollution controls, granted we need some regulation of pollution but some of the regulations are so strict that they force some businesses to shut down. Or not even open at all for example and this relates more to child safety than pollution certain makers of wood toys in this country have stopped making their toys because a certain percentage of all of their toys have to be tested for lead. This from manufacturers who never would use lead in their toys, not in their paint or anything else. Certainly it is important that manufacturers check their supplies before applying it to toys but every few toys to be checked when they know they are not using anything like lead paint is ridiculous.
 
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Old 11-01-12, 04:46 PM
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Air knows no boundries. Wind blows air everywhere. Including across state boundries and across the entire globe. Therefore, IMO, tight regulations nation wide and better yet world wide would benefit us all...

Paint manufactures in our country cannot make paint containing lead for any purpose. Thus okay to paint anything. Toys too! Regulations then do not apply here to such manufactures. Just another excuse IMO. And we believe them too...

However, lead paints might be okay in a foreign country and wind up on toys etc. Regulations then must apply to import American companies in our country to test before all/any products sold in our country.

That takes the burdon off the government (tax payers expenses) and puts it on the backs (where it belongs) of the company importing products and selling those products here in our country. I.E. less government oversight not more. Smaller government not bigger government.

Companies leave our country as a direct result of a lack of ability to exploit cheap labor here. Period. IMO everything else is BS. An excuse to avoid paying higher labor costs, paying cooperate and/or company taxes that they cannot hide offshore. Statics prove it. Overseas labor is very much cheaper than here.

Problem is so many millions of manufacturing companies moved off shore as a direct result of 80's de-regulation and nafta-gat treaties we here in America do not have enough industrial or manufacturing companies to employee all the presently unemployed whom cannot work at a high tech type job. Some do not have the abilities or are among the elder aged groups laid off, downsized out. etc. (prior to retirement) but they do want to work.

Some unemployed are of college age and some already very well educated whom cannot find jobs either. WHY? Because those jobs are also off shore. Our country lost it's tax base (Fed Tax With Holding) and every state lost it's withholding state tax base. All as a result of mass unemployment and lack of places to work!

Simply not enough employed workers to pay into the system and not enough full time employment for all to many to pay all their bills and still have spendable dollars left over.

Can't do business with people whom do not have money! :NO NO NO:

Not a politic statement nor blame of any party. America simply lost it's way. Overly involved in foreigh affairs, social issues, campaigning for re-election, donations, contributions and lobbyists!!!! Not us. Our needs nor in our countries best interests and the infrastructure. And we pay all them bums to do nothing!!!!! for us....

 

Last edited by Sharp Advice; 11-01-12 at 05:03 PM.
  #14  
Old 11-02-12, 09:32 AM
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I agree that there is a give and take with pollution controls. I don't see how rolling back what we have now is going to be positive. I really wish people would learn the history of pollution in this country and know how much of a difference these laws have made.

Here in NJ, they wanted to dredge the channels deeper to get larger ships into port Elizebeth. Well, if they did that, they would stir up all the pollution that has settled on the bottom and killed off what remaining fishery we still have left in the bay. That would be the fishery that used to be the economy for the town I live in. Between over fishing and pollution, it's gone. MAny jobs have been lost because of pollution. That is a two way street.
 
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