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Noticed rising grocery prices? Tell us!
146% Increase in the price of cotton in the past year.
As Americans across the country gas up their cars for their Memorial Day getaways this weekend, their wallets will take a bigger-than-usual hit. That’s because gas prices are up $1.06 from last year according to a study by AAA.
February 9th in email of good friend of mine,
mom of 2 on grocery shopping.
"Butter, corn syrup, bananas, vitamins like Q-10, iodoral are expensive. Innocent must-have’s like peanut butter and jelly are insanely expensive. Cereal boxes have shrunk a lot…..tiny BOXES ----all the while prices keep going up. I will never pay $5 for a box of Life cereal."
RETRO-SPECTIVE 2010s SHOPPING
Coming To Understand Money
Shopping has changed a lot over the years - especially if you are old enough to remember the Sears Catalog. Our choices were limited, it seems like everything was more expensive, and people didn't have nearly as much stuff as they do now.
There was far less waste, too it seems. We had people known as "repairmen" - yes only men, who you could call when your toaster oven, or washing machine was on the fritz. You didn't even think of tossing it and buying a new one.
Another thing, most people had no credit card. You paid cash, or did something which is almost unthinkable today, you put the item on "layaway". The store keeps it while you make payments. When you have paid for your item in full, you get to take it home. Or, people saved up for stuff and then bought it. These were different times and different people. They weren't so insistent on instant gratification.
The most important test of paper money is whether it facilitates real, per-capita economic growth. And on that score, the evidence is overwhelmingly negative. Measured in ounces of gold, per-family income in the United States has declined since 1971, retreating back to 1950s levels, despite the advent of two-income families.
Then along came a generation (born between 1945 and 1965-ish) who somehow got the idea that money grows on trees, there is such a thing as a free lunch, and everything generations of Americans had worked, fought and died for wasn't worth beans. This group had their own ideas - which they hatched during young adulthood in the fog produced by experimenting with various and sundry new "mind-expanding" drugs.
This we "can have it all" bunch set about doing just that, and succeeded rather nicely for roughly 20 years. They only brought down the banking industry twice, which we should probably be grateful for. While doing this, they mortgaged the future and because they don't want to face facts, as of January, 2011, are still doing so.
I added this little widget because it shows us some financial market data that will ultimately influence our shopping. Have you noticed the prices in your local grocery store have gone up quite a bit? I almost had a cow, man when I saw what I had to pay for milk and butter the other day.
To make a long story short, the chickens will come home to roost, and this is going to affect how we shop, what we buy and what we use to pay for our purchases.
Meeting the Variable Demand for Cash
The public typically obtains its cash from banks by withdrawing cash from automated teller machines (ATMs) or by cashing checks. The amount of cash that the public holds varies seasonally, by the day of the month, and even by the day of the week. For example, people demand a large amount of cash for shopping and vacations during the year-end holiday season. Also, people typically withdraw cash at ATMs over the weekend, so there is more cash in circulation on Monday than on Friday. NY Fed
End of America Watch
(From Stansberry & Associates)The Richmond Fed announced Atlantic Region manufacturers are getting crushed… District manufacturers reported that raw material prices increased at an average annual rate of 6.12 percent in May – the highest reading since the inception of our survey in December 1993 – compared to April's reading of 4.81 percent. 5/25/11
J.M. Smucker Company will increase its retail coffee prices by 11%, driven by "sustained increases in green coffee costs." Smucker has announced similar price increases three times in the past year – most recently in February. 5/25/11
Even with the U.S. debt ceiling officially breached, we're still issuing more debt. The Treasury auctioned $35 billion in two-year bonds today. But don't worry, the resulting price increases will only be "transitory"… 5/25/11
Around 7% of China's foreign trade in the first quarter ($55.2 billion) was settled in yuan, up from 0.5% a year earlier. China's foreign trade is normally settled in dollars, the world's reserve currency. Now, the yuan is becoming an international currency. The dollar is losing its power. From The Desk Of Porter Stansberry
Things You Should KnowWhat is a reserve currency? A currency (money) that most nations use to do business with each other and store a portion of their wealth.
Is there a reserve currency today? YES, Still the US Dollar
Have other currencies acted as reserve currencies? Yes, the British Pound Sterling
What happened? They mucked it up.
Here is an excerpt from the WINNIPEG FREE PRESS, WEDNESDAY, JANUARY 12, 1977 which discusses the economic situation in Britain as it loses its status as world reserve currency.
Combined with the recently-signed $3.9-billion loan from the International Monetary Fund, the program is meant to shield the shaky British economy from the explosions of the international money market. Foreign government holdings of sterling so-called official reserves totaled $3.8 billion at the end of September. Sales of these. reserves, especially by rich oil-exporting governments, were largely blamed for-the drastic decline of the pound last year. Private reserves of sterling, held mostly by big companies, have actually increased despite the decline of the pound, as an investment. The aim of Britain and her trading partners, therefore, was to rebuild confidence in sterling to forestall future selling, while at the same time providing for an orderly reduction in the sterling balances to make sure the problem does not arise again. The value of sterling is not just a matter of British prestige or pride. The effect of its fall has been shattering. Inflation, already high, was expanded by increased import costs as a result of devaluation. And interest rates, which should ideally be kept low to promote domestic industrial investment, were raised to encourage foreign sterling holders to keep their money in London accounts. The result has been a severe blow to the fragile economic optimism that was struggling to grow in Britain a year ago. The latest international agreement was welcomed by Prime Minister James Callaghan as "a very healthy start for 1977."
The Shopping Nanny
Ever try to buy something only to discover that some government official has made it difficult, if not impossible for you to purchase? Better get used to it, the list of forbidden items is long and getting longer...
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