Archive for the ‘Inflation’ Category

Inflation – It’s Kicking Your Door In

Friday, May 20th, 2011
Cash Prices Food Commodities
(Prices for actual physical commodiities, not futures)
  5/11/11 Year Ago Change
Grains and feeds      
Barley, top-quality Mnpls; $ per 6.2 3.15 + 96.8%
Bran, wheat middlings, Kn. City; $ per ton 178 43 +314.0%
Corn, No. 2 yellow. Cent. Ill. 6.605 3.48 +89.8%
Corn gluten feed, Midwest, ton 150.42 51.59 +191.6%
Cottonseed meal, ton 268 175 +53.1%
Hominy feed, Cent. Ill. Ton 205 77 +166.2%
Meat-bonemeal, 50% pro Mnpls ton 440 280 +57.1%
Oats, No. 2 milling, Mnpls; $ per 3.42 1.955 +74.9%
Sorghum, (Milo) No. 2 Gulf cwt 11.275 6.76 +66.8%
Soybean Meal, Cent. Ill., rail, ton 48% 335.6 291.9 +15.0%
Soybeans, No. 1 yellow Illinois 13.14 9.37 +40.2%
Wheat, Spring 14%-pro Mnpls; $ 9 4.4225 +103.5%
Wheat, No. 2 soft red, St.Louis, shel 7.72 4.81 +60.5%
Wheat, hard, KC 7.575 4.025 +88.2%
Wheat, No. 1 soft white, del Portland, Ore 12.1025 6.2825 +92.6%
       
Foods      
Beef choice 1-3,600-900 lbs. 166.68 154.05 +8.2%
Beef select 1-3,600-900 lbs. 160.27 150.17 +6.7%
Broilers, dressed ‘A’; per lb. 0.865 0.865 0.0%
Broilers, 12-city comp weighted avg 0.8458 0.8527 -0.8%
Butter, AA Chicago, lb. 2.05 1.605 +27.7%
Cheddar cheese, barrels, Chicago lb. 165.25 140.75 +17.4%
Milk, Nonfat dry, Chicago 164 130 +26.2%
Cocoa, Ivory Coast, $ per metric ton 3637 3566 +2.0%
Coffee, Brazilian, Comp. 2.7637 1.2962 +113.2%
Coffee, Colombian, NY lb. 3.0974 2.0139 +53.8%
Eggs, large white, Chicago dozen 0.885 0.595 +48.7%
Flour, hard winter Kansas City cwt 22.55 13.7 +64.6%
Hogs, Iowa-South Minnesota avg. cwt 88.04 82.49 +6.7%
Pork loins, 13-19 lbs, Mid-US lb 1.415 1.54 -8.1%
Steers, feeder, Oklahoma City, avg cwt 142.13 128.19 +10.9%
Sugar, cane, raw, world, lb. fob 26.31 19.54 +34.6%
Data Source: Wall Steet Jounal Market Data Center

**Chart courtesy of The Market Oracle

If you listen to the central banks, the press, or any western government (many times the three are interchangeable), you will hear that inflation is tame and under control. Inflation poses no threat. Now go and buy an IPad. But looking at the chart above, you have to think to yourself, who am I going to believe, the gov’t/banks/msm or my empty wallet and my lying eyes?

 The chart above only conveys food inflation, but regular readers of Mitchieville will remember a few charts The Mayor put up not long ago showing the huge increases in other commodities such as cotton, gold, oil, etc. Inflation isn’t politely knocking at your door any more, it has already booted it in.

Never mind the factors contributing to inflation, anyone paying attention already knows the factors. Things aren’t going to get better any time soon, it’s just the opposite. Not all the above increases have filtered through the system yet, but they’re coming and they’re coming fast. We’ve already noticed smaller packaging, and now we’re in for a bout of rapidly increasing prices. There’s nothing anyone can do, it’s already a done deal.

It’s time to protect yourself and your family. The Mayor isn’t talking about buying guns and tons of ammo and moving to northern Manitoba (although that’s not a bad idea), he’s talking about getting a hedge on inflation. And that means stockpiling. Stockpile everything of value. Stockpile wheat, coffee, sugar, oats, flour, everything you can get your hands on. That bag of flour you saw yesterday for $9.99? Buy 10 bags of the stuff. Or 20. Put it away and shut your gob. Done.

If you had enough of the essentials to last you 2 or 3 years, you’ll be well ahead of the game.

That’s all you can really do to combat food inflation, and the same goes for clothing inflation. Get your house in order now.

Put it this way, Bill Simon, President of Walmart, said last week that a massive bout of inflation is headed our way, and Walmart’s business is in the crapper because even the po folk who shop at Wally every month have cut back dramatically. If you don’t listen and understand those words, have a nice time eating your hat, The Mayor hopes it’s delicious.

What Inflation?

Monday, February 21st, 2011

Of Two Minds – You want inflation? Here’s how to get it.

Associated Content – Food, oil and the government’s printing presses to drive prices skyward

Reuters – Consumer prices, excluding volatile food and energy costs, rose at the quickest pace in 15 months in January, suggesting a long period of slowing inflation had run its course.

Yahoo Finance - Shoes, clothes, tires, plastics and other products all cost more at the wholesale level last month, putting pressure on businesses to pass the increases along to their customers. The hikes also give ammunition to critics who fear that the Federal Reserve’s bold steps to strengthen the economy have started to feed inflation and need to be reined in. Those critics include some Fed officials.

Yahoo Finance – Kraft Foods Inc., like many of its peers, is feeling some pricing pressure. The company reported Thursday that price increases it made to cope with higher ingredient costs are not going to be enough to sustain its profitability and it plans further hikes this year.

Forbes – America, poised for a hyperinflationary event?

Daily Finance – Why global food price inflation matters

Zero Hedge – A recently released report by the World Bank’s Food Price Watch confirms that rising agricultural products are sharply pushing up global food prices in lower-income nations (see “World food price uncertainty presents social risks,” in AsiaNews, 4 February 2011), especially among the poorest (where the poverty line is defined as US$ 1.25 per person per day).

Zero Hedge – Another look at inflation: cotton up 44% ytd

Gonzalo Lira – Inflation, hyperinflation & real estate