It is NOT INFLATION it is DEFLATION

[tabs]

It is NOT INFLATION it is DEFLATION. Since evey Central Bank in the world is a mad rush to the bottom with their painting regimes it means ALL currencies are being devalued at the same time. This is basically done to maintain currency equilibrium.

Since there is more money chasing the same amount of goods one could conclude that there would be inflation. Except for the fact that nearly 50M American are UNEMPLOYED and DO NOT HAVE THE MONEY TO SPEND thus there is NO CONSUMER DEMAND (Consumers make up 70% of the economy) and we should be seeing massive REAL DEFLATION of pricing. But that is NOT what is happening, pricing remains CONSTANT. That Constant pricing is the Inflation with so much money being printed, otherwise the bottom would drop out of pricing. Prices are being propped up with all the money being printed. Take away all that printing and EVERYTHING DROPS LIKE A ROCK RIGHT ON THROUGH THE CELLAR.

Fort example lets say you have a 100K mortgage on a 200K house. Suddenly your house DROPS in price down to 50K...your 100K mortgage is now TWICE what the house is worth. (In 2012 this is what was happening to the RE mrket when the FED stepped in with QE3). People WALK AWAY from their mortgages which further puts pricing pressure on RE. The person who owns their RE outright now has taken a huge hit to their net worth and is holding an asset that they can not get rid of for love nor money. They essentially have a place to live till they die if they can continue to pay the property taxes.

So the FED is pumping in new money into the system to prop up pricing. When you start to see prices START TO DROP in spite of the injection of liquidity is when you know the bottom is dropping out from under you. Meanwhile Society is beginning to devolve into fragmentation and chaos as a result of the economic stresses that have been building over at least the past 10 years..

Yesterday at Sams Club they had MM Black Forest Ham for $2.98 a lb, WITH an $8.00 off of the 8 lb BF Ham...Which brings the effective price down to $1.98 a lb...If yo go to the Big Chain Supers Kroger or Albertsons it is $10.99 lb, and at the local Hispanic market $7.99 lb...I call that Deflation because there is NO DEMAND and they want to move the product.

[widebody911]

pricing remains CONSTANT

For certain essential items, pricing seems to be going up

[Zeke]

Originally Posted by widebody911

pricing remains CONSTANT

For certain essential items, pricing seems to be going up

You can say that again. Where do you shop, tabs?

[svandamme]

up here as well.

hell, they are even bum rushing to houses for sale, with initial offers OVER the asking price now.

[tabs]

Originally Posted by svandamme

up here as well.

hell, they are even bum rushing to houses for sale, with initial offers OVER the asking price now.

Low interest rates..which is a form of juicing.

[tabs]

Originally Posted by Zeke

You can say that again. Where do you shop, tabs?

Check those Auto sales...

[1990C4S]

The price of Dragon Ass Jeans is constant. Demand has not changed.

[tabs]

Originally Posted by widebody911

pricing remains CONSTANT

For certain essential items, pricing seems to be going up

There were some bottle necks in the supply chain...where panic driven consumer demand caused shortages or illness caused a partial shutdown which created shortages.

Pork has come down again and Dairy has declined... Beef is just starting to decline again.

Check the prices for mfg consumer goods like TV's, clothing and such..

Where you see panic buying is in Spoons, as the level of uncertainty rises the desire to own some protection increases. They become a transcendently valuable commodity.

Classic Firearms in NC had a shipment of Zastava ZPAP AK's go up for sale on Wednesday afternoon and by early Saturday morning they were outa stock (about 48 hours). Similar thing happened when they had a shipment of PTR 32's and the same with ammo...this is going on right across the board.

Auction prices are trading at the higher end of the trading range trending to higher highs...all across the board...

[tabs]

Originally Posted by 1990C4S

The price of Dragon Ass Jeans is constant. Demand has not changed.

Last Friday I had a conversation with a retired 30 year Corp vet who did 3 combat tours was captured and tortured. His parting comment to me was that he "really enjoyed the conversation." We were on the same wave length..

The problem with you moon faced smiling idiots is that you have never faced your own Shadow self, you do not realize that absolute horror exists in yourself and in the world. You just can not face that it ain't all swell no more.

[tabs]

The FED does not care one wit about the 1% nor the 10%...They do not care about Bezos, Gates nor Buffet nor how much money they have. WHAT THE FED IS INTERESTED IN IS THE COLLECTIVE ECONOMY. What most people do not get is that the FED recent the sky is the limit printing with reckless abandon has done is severely debased the value of the currency. Which makes the holders of financial assets and cash that much poorer in real terms. Not only that but their position in the food chain is now on a banana peel as the system has just gotten that much shakier. The rug has been pulled out from under them in reality.

Now the question becomes why would the FED go to such an extreme position. The answer is absolute FEAR, they went all in throwing in everything including the baby, bath water, and kitchen sink.. It was either that or face the complete collapse of the Global economy and the resulting collapse of government and society. When the DOW drops 2000 pts in a day you know something is real bad.. that the fabric of the economy is collapsing. YOU have dodged a bullet for now...

[RWebb]

what grain bullet?

[nota]

two big ticket items are selling fast locally homes and big sail boats

2 of three close by homes have offers of full ask in the last few weeks locally
and prices are over the 08 peak by a bunch

[cabmandone]

Home sales are on fire here as well. A local realtor said homes are selling at above asking price right now which is NUTS. This has me considering putting my house on the market but I'm afraid it might sell too fast and I'd have to rent a place while building.

Construction equipment is still on fire as well. I finally got a few pieces bought for inventory but had to pay a bit more for those pieces. Talking to friends in the business, same thing for them too. Sales are strong and inventory is costing more due to the strong sales in used. Several dealers are saying that new equipment is strong as well but there are incentives on certain models.

[svandamme]

all them people that got locked up in their apartment during lockdown.
The
"I live in the city,
the city has everything I could ever need,
don't need a big place"

Now they are looking for that big place out of town, to get away from the city and everyone in it.

[tabs]

Originally Posted by nota

two big ticket items are selling fast locally homes and big sail boats

2 of three close by homes have offers of full ask in the last few weeks locally
and prices are over the 08 peak by a bunch

NYC RE is tumbling in price as the Swells and Sharpies do not like the civil and health environment in the city and are fleeing to rural areas...where prices are moving up because of the influx of city slickers.

This is the phenom that is going on...a flight to safety

[tabs]

If you want Equities to trade on their fundamentals the whole market and economy would have collapsed in 2009. You have your choice, either take what the FED dishes out or starve. That is stark but that is where it is at.

People who have little or nothing don't have much to lose. People who have a lot, have a lot to lose. Who do ya think is gona hit the ground the hardest. What is a share of Apple, Microsoft gona be worth if no one can afford to buy one of their products? What is a share of Amazon gona be worth if the economy implodes... The reality of it is that the Billionaires fortunes are gona turn to toilette paper. The only saving grace that they could have is by hedging with physical possession of precious metals. Then they have to worry about security, and who is going to protect them from their own security?

People who have a lot like the system the way it now was, because they are No 1 in the food chain. People who are No 1 do not like to rock the boat because to do so is to risk losing it all. People at the top become risk adverse. That is why totalitarian states repress their own people.

Americans rich or poor have been living in a post WW2 first world prosperity bubble that went bust in 08, the illusion of which was kept alive by massive borrowing and debasement of the currency till 2020. Now in 2020 the CV has created a reality check where the even the illusion of prosperity can not be maintained. When you do not have a job, can not pay the rent, can not pay on the debt, and can not pay the bills including food it is hard to think you are a rich country anymore. The result is anger, frustration, and disenchantment with the Leaders in charge of the system who have led you to disaster. The result is Civil unrest..

[RWebb]

https://nymag.com/intelligencer/2020/06/how-inequality-is-deepening-the-coronavirus-recession.html

[tabs]

Originally Posted by RWebb

https://nymag.com/intelligencer/2020/06/how-inequality-is-deepening-the-coronavirus-recession.html

I do not dispute the outcomes just the rational for it happening. Which I call BS on. What this rational FORGETS is that the American worker only became MC after WW2 when America had a virtual monopoly on Industrial production (producing 50% of the world output).

I suppose the German, Euro, Japanese, South Korean, Taiwanese, Chinese, Mexican, Indian, and SE Asian etc workers had no effect on American jobs and wage structure? When those foreign workers came on line American labour had to compete with them for jobs. Which then put pressure on the American workers wage structure. That is where off shoring really began in the mid 1960's..first with ship building. The stagnation in wages came in 1975 well before Reagan stepped into the Oval Office.

So we just blame it on Reagan and the Supply Side economics. That is a load of crapola. Reagan did sell you "American Exceptionalism" which btw was a load in of itself as they handed out the credit cards so the conspicious consumption could continue.

Further if you recall in the mid 1980's American corporations like IBM to become lean and mean to compete with the Japanese eating Americas lunch for the first time laid off it's dead wood white collar workers. Relying on fewer managerial types to do the job of many, the best and brightest were sought out where Corporations were willing to pay top dollar for Superstar talent.

Yes under Reagan tax rates were lowered to spur investment but loophole deductions were eliminated as well. It was Supply side econ and the "Trickle Down Effect" Which did not offset the other forces at work.

You might say that no one addressed the REAL PROBLEM and tha was that times had changed for the American worker with foreign worker competition for jobs.

NO ONE LISTENED TO CARTER WHEN HE SAID PUT ON A SWEATER..which meant TIGHTEN YOUR BELTS.. just like in the old days.

SO now Americans are getting the big Fk you...for not listening...

[tabs]

I would say the last good President the USA has had was Eisenhower..who was born in the 19th century and had hardscrabble sensibilities. The Leadership at ALL LEVELS since then have had receding slope foreheads denoting being low IQ and have their heads firmly up their azzes when it comes to common sense.

[KFC911]

Originally Posted by 1990C4S

The price of Dragon Ass Jeans is constant. Demand has not changed.

They fill the perfect niche between the two imo...

Flation