While in Lowes today I noticed that the price on 7/16" x 4'x8' sheets of OSB sheathing, (drywall) had just gone up to $7.97 from $7.06 the week before. That's a 13% increase in one week. I spoke to a friend who owns a building supply store in Virginia to discuss the increase listed above and he told me to that the 13% increase is nothin compared to whats coming. He was notified by U.S. Gypsum that as of 1/1/12 all drywall prices will increase - are you ready for this???? - 41%. Yes! 41%! Think thats a lot? Following is a list of commodities and their respective price increases on the open market over the past 12 months.
Oil......................13.24% increase
Unleaded gas...11.60%
Gold...................19.45%
Silver....................8.65%
Lean hogs..........24.06%
Live cattle...........16.40%
Feeder cattle......19.19%
All increases
All economists agreed that when the government and the FED instituted quantitative easing, inflation was a very real problem that would definitely come as a result. In the past, the FED has raised and lowered interest rates. In this case, if history is any indicator, the appropriate step to control what is about to be runaway hyperinflation, would be to raise interest rates to slow inflation. However, if the FED raises interest rates now, any potential economic growth would be stymied. The truth is that the FED has no idea how to stop this train ride. The economy is on the fast track to hyper inflation at a level not seen since Zimbabwe and prior to that the Wiemer Republic.
Wiemer Republic 1923 - a wheel barrow full of money could barely buy a loaf of bread.This is what happened when the Wiemer Republic fired up the printing presses to monetize their debt. This is exactly what Zimbabwe did in 2003. Zimbabwe issued a new currency to dig it's way out. Is that where we're headed? A new currency? Perhaps a global currency?
People, get ready to become more self sufficient than you've ever been. 2012 is going to be far worse than any of us imagine and far worse than any of us have experienced. Being rich won't help. Trying to buy food with the greenback will be like trying to buy it with toilet paper.
Don't buy what they are telling you. Open your eyes and prepare while you still can.
New Posts to fall below.
This is eye opening for me. I know I see a difference at the grocery store. I was used to paying $300 at the grocery store every two weeks. That's my budget. Recently it has gone up to almost $400 to buy the same things. I have cut back and still had to adjust my budget. The quality of what I buy has gone down. Instead of JIF I buy Great Value. I'm afraid that if the prices go up any more I will have to cut how much I buy or take the money from somewhere else. I already have a full time job and a part time job. What are we supposed to do next?
ReplyDeleteWould you please post the link to where this article was originally published?
ReplyDeleteanonymous 11:18, come on JT, this IS an original article from Salisbury News. Quite a bit above what you've ever been capable of, eh!
ReplyDeleteI've noticed that the prices of things have gone up just about everywhere too. Delmarva power has just asked for permisssion to hike it's rates due to the hurricane last season. That sounds like corporate welfare to me. Anyway, we have cut down on a lot. This Christmas will be a lot leaner than it has in the past. I think the figures being posted by the government that say people are spending more this Christmas are either completely false or people are falling into the credit card trap again. Either way, it doesn't represent an accurate look at the economy. 11:10 asks what we are supposed ot do next. I think the last line of the article says it all.
ReplyDeleteThis is a good article. Is this really an Sbynews original? If so, congratulations. Very high quality. These are things we really need to know.
ReplyDeleteGetting back to the grocery post, I have also notice that not only are prices rising every week, several items have reduced the weight of their product, canned tuna used to be something like 6 or 7 ounces-now are 5 ounces. Yet the price stays the same. Orange juice that was 64 oz. are now 59 oz.
ReplyDeletePsychology plays a big roll in the economy.The powers that be firmly believe that what we don't know won't hurt us.They may as well put blinders on us like they do a horse.That would prevent us from seeing to the right or left.We would only see what was directly in front of us.For instance,psychology enables us to believe there is actual gold in Ft Knox.Rumor has it that there is no gold there,but as long as we believe there is,the backing system will continue to work.
ReplyDeleteThis is absolutely true! We need to stock up and be able to barter because money will have no value. Go to Backwoodshome.com and learn how you can begin to stock your pantry a little each week and be prepared for the lean times to come. Need to have a garden and some chickens for eggs. Most of all, you will need to be able to protect what you have so a few good shotguns with lots ammo AND last but not least a good guard dog.
ReplyDeleteI was thinking about this the other day while in Giant. My weekly grocery bill was through the roof. Back around 05-06, you could get Boston Butt (for making pulled pork) for $0.69/lb most weeks. Now it's about $2.25/lb.
ReplyDeleteYou can also see inflation in the price of cars. Even a modest car would set you back $20k now. 10 years ago, that would be an entry level luxury car with relatively few gadgets compared to what a similar car offers today.
"Core Inflation" is a crock of sh!t, because it ignores fuel and food. These are the two biggest line items in a budget after housing, and maybe car payments.
No doubt about it. Hyperinflation is here. Hang on. This is gonna be a rough ride.
ReplyDeleteDr. Phil is doing a show about the poor economy and the effect it has on our relationships as well as how hard it is for people to make ends meet. One thing is for sure. Everyone has had to cut back. Some more than others. Bad times are coming down the road. Don't look down at others. You may soon find yourself in the same position as the people you look down on.
ReplyDeleteVery nice article. The propaganda and lack of good stories on MSM keeps most in the dark about the current monetization of the debt and its effects on our buying power.
ReplyDeleteIt's always a good time to pay off your debt and start a garden, but now more then ever. And remember love is free to give and priceless when received.
Thank you for this insightful article. Amazing how we never seem to learn from our mistakes. I can see that this winters reading will consist mostly of books that teach about gardening and preserving food. I guess I always thought it might come to this but it looks like it's inevitable now. Anyone know anything about firearms?
ReplyDelete