Bad news for food eaters

When the MSM mentioned inflation was only 0.1 % last year and consumer prices fell 0.7% in December, they used cars and big ticket items. What they failed to do is separate those big ticket items with our "every day" need items. Of course food would go into the "everyday needs".

With all the money that began being printed starting in September - we still have yet to see the "real" influx of it, in our economy. The MSM keeps saying we are in a "deflation" period, but what they are NOT saying is.... yes.. big ticket items (cars etc) are in a deflation period, BUT what is NOT in a deflation is our food!

link to article: www.atimes.com...

the Labor Department said that consumer prices fell 0.7% in December - falling for the third straight month! - and prices were up only 0.1% for the year, which is "the smallest increase since 1954"!

In fact, this is not exactly true, as at bls.gov we learn that, as we already know, "The Consumer Price Index for All Urban Consumers (CPI-U) decreased 1.0% in December, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The December level of 210.228 (1982-84=100) was 0.1% higher than in December 2007."

However, when you look closer, you will see that the price of energy going down accounted for most of the lack of inflation, or, if you don't want to look closer, you can just read where the Labor Department itself said, "Declining energy prices, particularly for gasoline, again drove most of the decline."

To prove it, they go on "The energy index declined 8.3% in December. Within energy, the gasoline index fell 17.2% and accounted for almost 90% of the decrease in the all items index." - 90%! Almost all!

In fact, excluding food and energy, overall prices increased 1.8% "for all of 2008", which is almost 2%, and as such is VERY worrisome when inflation should be zero.

I know I have gone to the store, and personally have seen items I purchased a couple of weeks before at $1.20 were up to $1.80. To me that was a HUGE increase in price on an under two dollar item.

The fact of the matter is... the govt. can manipulate how the information is preceived and given out, including if there is actually any inflation. They lump everything together, without separating facts, including the price of oil going down.

They are doing the same manipulation with the "unemployment" numbers.
The fact of the matter is, the "real" unemployment numbers in the states is in the double digit range.

When people have warned about inflation and hyperinflation, others still take it in stride.

The other warning - which is in a thread I began a few weeks ago, is the fact that shipping of finished goods is down. Which has altogether different implications and impacts which we will all face in the near future, besides the prices of items that we need.

Also, FYI - I copied and pasted the "Exact" headline as in the news article.

If people have doubts, go and look at the store and see what the prices are of items you normally buy, also another good indicator of what is happening in the "finished goods" shipping department, is go to Target, warning you may be shocked at the lack of goods on their shelves.

I couldn't agree more that grocery store prices keep going up and up. However, I was shocked last night when I bought a carton of cigarettes. They've went down 20 cents a pack, or $2.00 a carton. With my $4.00 off coupon, I saved $6 bucks a carton. That makes me wonder what's going on? Cigarettes have steadily increased in price. Why would everything be going up and then cigarettes drop in price? Maybe because of the economy, people can't afford to smoke anymore, so they drop the price? Maybe they want to give us an incentive to keep smoking so we can keep them and hospitals in business?

Originally posted by Clark W. Griswold
However, I was shocked last night when I bought a carton of cigarettes. They've went down 20 cents a pack, or $2.00 a carton.

the exact opposite is happening to me, in NORTH CAROLINA of all places. also, a new tax increase for ciggs has either just been passed or it is about to be. My pops works for RJ Reynolds, and he says its business as usual though,

I pay 30 for a carton camel lights in a box, which is still way less than in New York and other places drawing from the Master Settlement Agreement

As far as food prices go, it would imagine they are right on line with what the annual growth rate and natural inflation we would normally be seeing.

[edit on 28-1-2009 by drsmooth23]

reply to post by questioningall


I eat food, so this thread speaks to me personally.

Economic figures are all screwed up right now. They're not even reliable indicators of what they are indicating. For example: Many big transportation companies such as airlines, shipping (ships), trucking, etc, and farmers, freaked out last summer when fuel prices went through the roof. So they hedged their costs by "locking in" fuel prices for the long term. As a result a considerable part of the fuel dependent economy is still dishing out over $4 a gallon or whatever diesel was in the fall. Plus we have been warned for years that food prices are going to skyrocket for a multitude of reasons.

It's a big problem but not an unexpected one.

reply to post by drsmooth23


Ugh, 80.00 a carton up here in AK. Way past time to quit.

Originally posted by The Undertaker
reply to post by drsmooth23

 

Ugh, 80.00 a carton up here in AK. Way past time to quit.

F those beans, I had heard $70+ in upstate NY, but it looks like we might have a new winner. I guess Ill stop complaining now,

------------------

I have seen Apples shoot way up over the past few months, and it might be just me but they are getting poorer in quality too. I like a nice Big red delicious when im drinking my beer, but I keep getting these ones that feel ok when i buy them but they QUICKLY deteriorate, like almost over night.

reply to post by The Undertaker



ARe you kidding me? It cost that much there in AK? OMG! Wow, prices are going higher and higher, also just to let you know, if you think cigs are a lot now, wait until the "health bill" passes in Congress this coming month. It is a kids health bill, from what I had heard awhile back, it will tack something like $2.00 a pack onto cigs. I may be a little off with that number, but it is something like the price of what they are right now, added on.

Yeah, I mean, we aren't going to just stop buying food (unlike cars and TVs) so they can keep increasing prices knowing that eventually most people will have to buy.

FYI ciggs are $4 to $5 bucks per pack around here.
I don't smoke, too expensive.

But that's my theory. It's getting more expensive because companies need it to, and they can because we're not just going to step back and say "Oh, too expensive, not gonna eat anymore."

A popular brand of ciggarettes are about $45 a carton at the local drug store. Actually, the one I work at. A few months ago we printed new tags for food items from coffee and cereal to pasta, soup, cookies, canned veggies even food in the candy aisle. All prices went up 25 to 75 cents. Also, chewing gum is almost 2 dollars a pack! Chewing gum for crying out loud!!

The management is hiring new employees to avoid paying longtime employees that have been there 6 months or over a year. In other words, hours were cut of longtime employees and then new people were highered at a lower rate and given more hours.

Feel the pinch!

Originally posted by questioningall
reply to post by The Undertaker

 

also just to let you know, if you think cigs are a lot now, wait until the "health bill" passes in Congress this coming month.

Huh, thats odd. It will have to be worded pretty well because the Master agreement was big tobaccos way of appeasing the states and the people who wanted to sue them. the reason they are above $20 in the first place is your paying the bills of the A-holes who decided to sue them because they were hard headed enough to smoke in the first place. I thought that the master agreement was the final litigation about smoking and the government, but it looks like i might need to research some more.

Robert Levy states,
"For 40 years, tobacco companies had not been held liable for cigarette-related illnesses. Then, beginning in 1994, led by Florida, states across the country sued big tobacco to recover public outlays for medical expenses due to smoking. By changing the law to guarantee they would win in court, the states extorted a quarter-trillion-dollar settlement, which was passed along in higher cigarette prices. Basically, the tobacco companies had money; the states and their hired-gun attorneys wanted money; so the companies paid and the states collected. Then sick smokers got stuck with the bill

Tobacco Master Settlement Agreement

[edit on 28-1-2009 by drsmooth23]

Whew, Good thing I am not a food eater.

Is anyone surprised that inflation includes food? Fuel costs are the number one factor in the higher prices of food production and distribution. Of course the prices of food are going to increase. You can choose not to buy a house when the market is high, but can you choose not to buy food?

Inflation marches on. That is why I stopped eating back in '61. It costs too much. Thank God I can still breathe for free, even if water isn't free. Besides, these days air is far more filling than it used to be.

If you are waiting for the Government to tell you that the cost of food is on the rise, don't hold your breath.

I have also noted that packaging sizes have gone down while the price is going up. No longer is it a pound of coffee it's like 14oz. Same with cereal the boxes look the same from the front but their thinner.
Regular whole wheat bread. $4.65 a loaf, 1/2 gallon of milk $3.55.

Weimar republic anyone?

I pay 30 for a carton camel lights in a box, which is still way less than in New York and other places drawing from the Master Settlement Agreement

I quit smoking three years ago and the last carton of smokes I bought cost me 56 dollars in NJ. I have heard that they are up to almost 75 now. How true is that? I'm not sure... it's been a while. I guess it depends on what brand you smoke too. Thank God I quit when I did!

I recieved a notice from SSI of a 2dollar increase cost of living. The following day I recieved a notice from my foodstamps of a decrease because of my cost of living increase. I lost 24 dollars in foodstamps because of the 2dollar cost of living increase from my SSI.
Rip off.

Originally posted by The Undertaker
I have also noted that packaging sizes have gone down while the price is going up. No longer is it a pound of coffee it's like 14oz. Same with cereal the boxes look the same from the front but their thinner.
Regular whole wheat bread. $4.65 a loaf, 1/2 gallon of milk $3.55.

Weimar republic anyone?

NBC did a thing about it last night or the night before. They showed how all the packaging has gotten smaller in the last few months, once this economic situation happened, yet it all cost the same as before and has even gone up.

BTW: not that this thread is about cigs. but.... when I was in Thailand last year, a carton of cigs cost.................... ready???? $10.00

reply to post by The Undertaker


I know that we in Portugal have smaller salaries, but today my sister bought, with 5 Euros (6.5 dollars), a loaf of bread (450g), 100g of cheese, 100g of ham, 250g of butter and a 1.5L bottle of Pepsi.

Milk is around 0.6 Euros a litre (0.26 gallons).

reply to post by questioningall


I read it several times but I don't understand it.

Doesn't it say that excluding food and energy the prices increased, meaning that the price of energy and food were the ones that bought the average down?

reply to post by questioningall


One thing that many people forget while concentrating on the "works of the federal government" is that states are in trouble and they will do anything they can to get revenues for their inflated budgets.

So get ready for the states to start gouging their tax payers at local level.