Post by jeffolie on Dec 3, 2010 13:32:20 GMT -6
Oil $89.05 +$1.05 +1.19%
I have been calling the selective inflation, SCREWFLATION
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Inflating selectively, screwflation, substitution
« Thread Started on Nov 29, 2010, 12:42pm »
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Inflation is real but selective. Declining housing price are real. Higher prices for college tuition, health insurance premiums, gas, home heating fuel are real. Subtitution happens when people buy cheaper priced chicken instead of steaks and hamburgers as a method of coping with higher prices just as college students substitute 2 years at low priced City Colleges and then transfer to 4 year colleges with their general education units satisfied at lower costs before taking their upper division, major classes at higher prices. No substitution means lower standards of living such as skipping medical care or not buying pharmacy items, living in a car when incomes stop, etc.
I prefer the label "screwflation and stagflation" for now over inflation or deflation. Massively more Americans live lower standards of living as evidenced by SNAPS (food stamps) and homeless numbers while 1 in 4 children experienced food insecurity last year.
Ben recent QE2 promoted stocks and consumer spending by the upper 20% of income earners resulting in a small increase in retail spending so far in late November's seasonal Xmas buying which helped employ a sizeable increase in temporary workers for the season.
Ben may yet push the DJIA UPTO 12000 in the next 45 days from record new profits (mostly due to cost cutting) and avoid a retail season collapse by the ever increasing 'broke ass men' whose jobs have gone to India, China and other 'cheap ass labor' manufacturing countries. But, retail stores will have thin profit margins as families headed by women cannot do much more than buy an Ipad at best.
Inflation in China is real but has not yet been passed on in higher prices to the West. Ben's push for the upper 20% to feel wealthy with higher stock prices may yet avoid a collapse in FINAL DEMAND for Ipads but average Americans feel SCREWFLATION and substitute with record buying at Goodwill Stores or the 99 Cent Stores.
Not paying mortgages allows cash for every other purpose. Record number of 'owners' are losing their homes to bank 'repossessions' and thus must find other places to live such as apartments, relatives, or as American Refugees in cars or RVs. The temporary freeze on bank 'repossessions' is over and such relocating to other places ends the cash that was freed up to spend for every other purpose.
Read more: unlawflcombatnt.proboards.com/index.cgi?board=financial&action=display&thread=8120#ixzz174wI4MwI
I have been calling the selective inflation, SCREWFLATION
==============================================================
Inflating selectively, screwflation, substitution
« Thread Started on Nov 29, 2010, 12:42pm »
--------------------------------------------------------------------------------
Inflation is real but selective. Declining housing price are real. Higher prices for college tuition, health insurance premiums, gas, home heating fuel are real. Subtitution happens when people buy cheaper priced chicken instead of steaks and hamburgers as a method of coping with higher prices just as college students substitute 2 years at low priced City Colleges and then transfer to 4 year colleges with their general education units satisfied at lower costs before taking their upper division, major classes at higher prices. No substitution means lower standards of living such as skipping medical care or not buying pharmacy items, living in a car when incomes stop, etc.
I prefer the label "screwflation and stagflation" for now over inflation or deflation. Massively more Americans live lower standards of living as evidenced by SNAPS (food stamps) and homeless numbers while 1 in 4 children experienced food insecurity last year.
Ben recent QE2 promoted stocks and consumer spending by the upper 20% of income earners resulting in a small increase in retail spending so far in late November's seasonal Xmas buying which helped employ a sizeable increase in temporary workers for the season.
Ben may yet push the DJIA UPTO 12000 in the next 45 days from record new profits (mostly due to cost cutting) and avoid a retail season collapse by the ever increasing 'broke ass men' whose jobs have gone to India, China and other 'cheap ass labor' manufacturing countries. But, retail stores will have thin profit margins as families headed by women cannot do much more than buy an Ipad at best.
Inflation in China is real but has not yet been passed on in higher prices to the West. Ben's push for the upper 20% to feel wealthy with higher stock prices may yet avoid a collapse in FINAL DEMAND for Ipads but average Americans feel SCREWFLATION and substitute with record buying at Goodwill Stores or the 99 Cent Stores.
Not paying mortgages allows cash for every other purpose. Record number of 'owners' are losing their homes to bank 'repossessions' and thus must find other places to live such as apartments, relatives, or as American Refugees in cars or RVs. The temporary freeze on bank 'repossessions' is over and such relocating to other places ends the cash that was freed up to spend for every other purpose.
Read more: unlawflcombatnt.proboards.com/index.cgi?board=financial&action=display&thread=8120#ixzz174wI4MwI