The other day I read an article about “shrinkflation”. They pointed out that retailers are keeping prices constant, but reducing the amount of goods they put in their package.
For example, at Costco you can buy a case of paper towels for the same price as it was just a few months ago. However, the rolls are now just a little bit skinnier. The roll used to contain 160 sheets, now, for the same price, they give you only 140 sheets.
If you didn’t pay attention, you would never notice this “minor” change. However, what they are trying to hide from you is an inflation rate of 14.3%.
Similarly, your bag of potato chips is containing a few chips less than a few months ago…but then, who is counting?
I had to laugh, when I read this article. Has anybody (other than us commodity traders) looked at commodity prices???
Here are some approximate price comparisons, going back 1 year:
Hogs… was 75, now at 115
Corn…. was at 360. Now at 720
Soybeans…. was at 850, now at 1570
Copper…was at 230, now at 460
Lumber… was at 360, now at 1600
Iron ore…. Was 90, now at 165
Crude Oil… was at 32, now at 64
The question is….are these just the typical commodity price fluctuations we usually deal with…. Or is it the beginning of something much more sinister. (my grandparents lived through the horrors of a hyperinflation, in Germany, in the late 1920s)
Increasing taxes on the rich might help by decreasing the deficit.
Thanks Larry,
Are you thinking their objective is to decrease the deficit?
Yes, indeed, and they want to avoid increasing taxes as much as possible for those who aren’t rich. So, the solution is to increase taxes for those who could most afford it.
Thanks Larry,
You just gave me an idea for a great new thread because Biden's claims with his Green New Deal(or Biden Deal) are a fairly tale/science fiction based on the laws of physics/chemistry, economics, and energy.
His deal will hurt the economy/jobs and at the same time will irrefutably be much more environmentally damaging than fossil fuels.
Considering this fact, I don't believe for a minute that he plans to pay down the deficit.
I've been a strictly practicing (objective/independant) environmentalist for almost 40 years now and that matters 100 times more to me than political parties............neither of which do I affiliate with.
This new thread will feature the facts about the life spans of solar panels and wind turbines.........around 25 years.
We are not being told about the massive junk/waste and use of natural resources that will be used as society ramps up production....then has to replace all of them every 25 years. Even more jobs? Right...........we can also pay people to dig holes and pay another group of people to fill the holes in too (-:
We need dependable energy that doesn't generate massive environmental waste, cause additional pollution and use up natural resources. Fossil fuels do use up 1 main natural resource..............themselves. BTW, they will be running out later this century anyways, so if you want to use that as the LEGIT reason to develop alternative, clean energy, it actually makes more sense.
Same thing with car batteries. In addition, some of the important metals needed to manufacture these batteries.........75% of which is in China and they will have the franchise/control.
In addition, China now emits more CO2 than the entire developed world............all the countries combined and almost 3 times what the US emits and they will be building more new coal burning power plants than the US has in existence.
With the new tax laws making it more favorable for companies to move out of the US..........and even more importantly, we are about to impose some strict CO2 emissions penalties/taxes on US industry and consumers...with 100% certainty, my guess in the next year they will start, its the recipe for the Green New Deal to crush the US economy and hand over business to China, while global CO2 emissions soar higher(supposedly the reason for the Green New Deal-to save the planet-ha ha)
Every single thing about it is damaging, while they tell us the complete opposite. Why would I trust them if they said they wanted to pay down the national debt.
Why do you believe they will pay down the debt Larry?
I am actually looking for reasons that make sense(based on more than stories or promises) and you are a very sensible guy.
Mike,
What exactly do you mean by “pay down the debt”?
I’m not saying they’re going to balance the budget, but I am saying that the purpose of the higher income taxes on the rich that Biden has proposed is to reduce the deficit below where it would otherwise be without these tax increases. I’m not even saying the deficit will necessarily go down under Biden. Spending may go up faster than taxes rise. Who knows?
I realize I’m not saying anything earth-shattering.
OK, thanks for elaborating Larry.
When you said "decreasing the deficit", I thought that you meant in the absolute sense, not a policy that will cause it to increase less than the amount that they will be increasing it.
For sure I agree with that one!
I would be shocked if they actually decreased the deficit.
SO a reduced deficit has an impact on inflation? I have GOT to hear this explanation.
If by reducing the deficit, you mean we stop printing dollars in the multi-trillions for vote buying schemes, I'm with you. But increased taxes, if anything, increase inflation.