One replier showed a photo of Kroger’s financial results showing lower profit margin this year vs previous year.
INFLATION--FED's cutting rates again...
- Thread starter Chop
- Start date
Typically, a grocery business is a pretty darn low profit margin outfit. While you may be getting ripped off a bit for some of the pre-packaged chips, etc., they're often just breaking even (or worse) in meats, produce, etc. The fresh stuff on the perimeter of the store brings you in, they get your $$$ in the interior aisles with the pre-packaged non-refrigerated foods.
Food inflation is real. But it's mostly NOT being caused by Kroger, HEB, Publix, Safeway, Wal Mart, etc.
Food inflation is real. But it's mostly NOT being caused by Kroger, HEB, Publix, Safeway, Wal Mart, etc.
It's so dumb, and if there was any truth to it, the price spikes would only be hitting those stores. It's hitting consume items of all kinds.
By the way, after being here for almost two weeks now, the inflation is pretty clear to me. I'm getting ***-raped just buying stuff like soda and deodorant at Walmart. It's ridiculous, and the argument that this mainly hurts the wealthy is so moronic. It's not gonna kill me if a run to Walmart costs me $10 or $15 more than it did a few years ago. For a working class family, that matters.
Monahorns
10,000+ Posts
Most businesses run on very profit margins. Manufacturing companies, restaurants, groceries, movie theatres, most electronics, are some of the ones I can name personally. Those companies who do have larger profit margins need them in order to reinvest in new research and product development. So even then, the money isn't going to disproportionately enrich executives. It is going back into the business.
I hear you. Movie theaters are an interesting case though. I got to know the manager of one who said they lose $ or break even (if lucky) on the movie side of the business. But the profit margins at the concession stand are obscene. Around 90% profit margin for popcorn. Real high for drinks and candy too. When people are in through the door, they’re making good $$$. A captive audience wants snacks. Popcorn is traditional for movies. Good location movie theaters rarely go out of business.
Now that I think about it…
I guess it’s only right that they raise the salary of the guys who serve popcorn and sweep the theatre floors to $25 hour + benefits. They should unionize and demand it right away. And if that causes movie and movie concessions price inflation—so be it. The privileged movie goers will just have to foot the higher bill. Oh yeah, better make them wear masks while we’re at it.
I guess it’s only right that they raise the salary of the guys who serve popcorn and sweep the theatre floors to $25 hour + benefits. They should unionize and demand it right away. And if that causes movie and movie concessions price inflation—so be it. The privileged movie goers will just have to foot the higher bill. Oh yeah, better make them wear masks while we’re at it.
Last edited:
The Commerce Dept reported the November annualized inflation rate at 5.7%. That’s the highest rate in 39 years.
Consumer prices up 5.7% over past year, fastest in 39 years | AP News
Consumer prices up 5.7% over past year, fastest in 39 years | AP News
Last edited:
"The big jump in the Commerce Department’s price gauge [5.7%] was similar to the rise in the consumer price index, up 6.8% for the 12 months ending in November, also the biggest surge by this measurement in 39 years."
Consumer prices up 5.7% over past year, fastest in 39 years | AP News
PCE inflation: A key price measure just hit a nearly four-decade high - CNN
"...but the so-called PCE inflation is the Federal Reserve's preferred measure and informs the central bank's policy decisions."
Consumer prices up 5.7% over past year, fastest in 39 years | AP News
PCE inflation: A key price measure just hit a nearly four-decade high - CNN
"...but the so-called PCE inflation is the Federal Reserve's preferred measure and informs the central bank's policy decisions."
"Republicans anticipate a year-ahead inflation rate of 6.8%, over double the expected 3% rate among Democrats."
Well that's interesting. I'm thinking inflation in 2022 could top 8% (or more). I guess I must be a Whig or something... It would be nice if the Democrats were right, but I think they're viewing inflation through rose colored glasses.
Bloomberg - Are you a robot?
Well that's interesting. I'm thinking inflation in 2022 could top 8% (or more). I guess I must be a Whig or something... It would be nice if the Democrats were right, but I think they're viewing inflation through rose colored glasses.
Bloomberg - Are you a robot?
Monahorns
10,000+ Posts
Any politician who isn't describing ways of separating government from the control of our money isn't going to be willing to help us at all. When it comes time to make things better, that is all that will work. Get to the point where the interest rate is determined by market forces not government edict. Get to the point where money supply is determined by market forces not government edict.
Government has treated the American economy like its own honey pot for decades. It's time to change that.
Government has treated the American economy like its own honey pot for decades. It's time to change that.
AC
2,500+ Posts
IMHO Bitcoin can eventually pull that off. It uses energy to mine on a blockchain. Said energy can come from flared natural gas and associated natural gas. Thus, it’s a positive impact on environments. Now Paraguay and El Salvador are starting to mine Bitcoin off volcanoes and are making it legal tender. It’s the only hard money that is all free market. Gold will no longer hedge like Bitcoin. It’s my endowment, Ethereum is my speculation, land/real estate is my investment. By doing that I’m out of reach from central banks! Working so far! Don’t let private central banks control you. They are not held accountable.
Use as an alternative Third World currency could be a great benefit for humanity. Many of those sorts of countries have experienced hyper inflation and the resulting regime changes / military coups that almost inevitably follow.
From an international lender’s standpoint, by lending and demanding repayment in crypto, the Third World country can’t devalue their currency and effectively cheat their lender (although there are already ways around that… ask a finance major or something, as I’m no expert on that…).
AC
2,500+ Posts
8% CPI inflation, 2022? Agree, could happen. CPI is NOT real inflation. Today, in Texas, including fuel, real inflation is 14% or 15% in urban areas. See this blog on real inflation from a year ago. CPI is nicknamed CP lie, or fake inflation:
Factor in Real Inflation
Monahorns
10,000+ Posts
Good article describing logical link between inflation and wealth consumption.
How Much Control Does the Central Bank Have over Interest Rates? | Frank Shostak
How Much Control Does the Central Bank Have over Interest Rates? | Frank Shostak
I've learned over the years that whenever I plan on seeing a movie I also plan dinner before. I can have a nice night out with great food for less than a crappy bucket of stale popcorn and watered down coke. Eating right before the show eliminates any spending while watching the movie.
Movie theaters should go the way of travel agencies. With the rise of HDTVs and streaming services, there just isn't much point. Why pay a bunch of money for crappy food and having to hold your bladder for two hours to keep from missing part of the movie? The last movie that I saw in the theater that was worth seeing in an actual theater was Return of the Jedi. I've seen others, but that was the last one that I wouldn't have been just as happy watching at home.
Significance of the article below: I lived in Hawaii for a number of years and I don't remember this sort of anti-leftwing opinion being printed--EVER.
Inflation’s here. Let’s not make it worse - Hawaii Tribune-Herald
^A blue-state newspaper publishing an anti-progressive opinion? Maybe there's hope after all.
My in laws retired in Hawaii. I visited once a year before Covid. Many small business owners are in Hawaii. I would say they are socially liberal but fiscally moderate. They are also sensitive to paying high prices and taxes.
Significance of the article below: I lived in Hawaii for a number of years and I don't remember this sort of anti-leftwing opinion being printed--EVER.
Inflation’s here. Let’s not make it worse - Hawaii Tribune-Herald
Well, the Biden Administration clearly doesn't get it, even when given good advice -
Biden anti-inflation strategy could make things worse, Larry Summers says - MarketWatch.
Excerpt from the link -
The Biden White House is promoting tougher anti-monopoly laws to curb U.S. inflation and ease public criticism, but a prominent Democratic economist says it’s a fool’s errand.
“The emerging claim that antitrust can combat inflation reflects ‘science denial,’ ” tweeted Harvard economist Lawrence Summers, a senior official in the Obama and Clinton administrations. “There are many areas like transitory inflation where serious economists differ. Antitrust as an anti-inflation strategy is not one of them.”
One more excerpt -
Summers prescribed a series of measures that seem contrary to the current approach of the Biden administration: Reduce “Buy America” rules, tariffs, energy restrictions and regulatory delays that hinder business.
“In general, when government goes to war with industries it discourages investment and subsequent capacity” that can help reduce inflation, Summers tweeted.
And this coming from an advisor to the Obama Administration. Joe seems intent on doing the ostrich imitation, sticking his head in the sand and hoping the problem goes away. Meanwhile the American consumer pays for his poor policies.
Biden anti-inflation strategy could make things worse, Larry Summers says - MarketWatch.
Excerpt from the link -
The Biden White House is promoting tougher anti-monopoly laws to curb U.S. inflation and ease public criticism, but a prominent Democratic economist says it’s a fool’s errand.
“The emerging claim that antitrust can combat inflation reflects ‘science denial,’ ” tweeted Harvard economist Lawrence Summers, a senior official in the Obama and Clinton administrations. “There are many areas like transitory inflation where serious economists differ. Antitrust as an anti-inflation strategy is not one of them.”
One more excerpt -
Summers prescribed a series of measures that seem contrary to the current approach of the Biden administration: Reduce “Buy America” rules, tariffs, energy restrictions and regulatory delays that hinder business.
“In general, when government goes to war with industries it discourages investment and subsequent capacity” that can help reduce inflation, Summers tweeted.
And this coming from an advisor to the Obama Administration. Joe seems intent on doing the ostrich imitation, sticking his head in the sand and hoping the problem goes away. Meanwhile the American consumer pays for his poor policies.
Biden administration is acting like a 3rd world dictatorship when government policies are not working. Hugo Chavez comes to mind.
^And that may be an insult to Chavez.
Last edited:
Inflation hedge bitcoin is down 7% in the last 24 hours
Good info to have.
Gold is only down very slightly and is basically stable.
At this moment in history, I’d put Bitcoin as about 75% (or more) speculative instrument and 25% (or less) inflation hedge.
Their salsa is hard to find as well. Damn Chinese taking over Val Verde county.
Five bucks for a (good, I admit) bag of chips?
Pass, no matter how good I think they are.
Pass, no matter how good I think they are.
Weekly Prediction Contest
CFB Playoffs • First Round at DKR
Sat, Dec 21 • 3:00 PM on TNT/Max
Clemson game and preview thread
Recent Threads
-
Another Trans school shooter (arrested)
- Started by Horn2RunAgain
- Replies: 120
- West Mall
-
Trump Administration Accomplishments
- Started by LonghornCatholic
- Replies: 39
- West Mall
Prediction Results Threads
