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Tuesday, September 14, 2021

Bidenflation just gave you a 5.3% pay cut

Good morning. Your $20 is worth less than $19 now thanks to Biden. The government said prices in August were 5.3% higher than they were in August 2020.

The New York Post reported, "That’s down from July’s 5.4% year-over-year rise in prices, which exactly matched June’s increase, the biggest 12-month rise since August 2008, just before the financial crisis sent the US into the worst recession it had seen since the Great Depression."

So we Whip Inflation Now by going into a recession. That's good to know.

The spin is the highest inflation in 13 years is slowing down.

Mike Bloomberg's wire service said, "U.S. Consumer Price Growth Cools, Smallest Gain in Seven Months."

The billionaire Never Trumper's news story said, "The figures offer some validation of views among Fed officials and the Biden administration that high inflation will prove temporary. The report could also help blunt criticism from Republicans that President Joe Biden’s economic stimulus is spurring damaging inflation as he seeks to sell a $3.5 trillion long-term tax-and-spending package that’s also running into opposition from moderate Democrats."

Yep, roll out the barrel of money because the gang's all here.

There is just one problem with the marketing of Bidenflation as temporary.

It isn't.

Buried in the story was this: "Parts shortages that have driven up input costs are restraining production. In the last week, Toyota Motor Corp. and 3M Co. both downgraded their outlooks for car output due to semiconductor shortages, while Nestle's said it is introducing even bigger price hikes as commodity and transportation costs surge."

Supply problems extend way beyond computer chips. That's obvious. There are no computer chips in Nestle's Quik.

Zero Hedge reported, "Aluminum prices on the London Metal Exchange hit a 13-year high Monday, extending a year-long vertical ramp amid supply risks in Guinea and alumina refining woes in China and Europe. 

"The benchmark contract on the LME climbed nearly 1%, touching its highest level since 2008 at $3,000 per ton. Prices have jumped 50% this year and 15% in the last three weeks."

There is that 13 years benchmark again.

Printing up money and flooding the economy with $3.5 trillion in a boondoggle called infrastructure will accelerate inflation. And businesses know it.

The Epoch Times reported, "An executive of Kroger, one of the largest supermarket chains in the United States, warned grocery prices are about to become even higher this year as inflation sets in.

"Inflation is running hotter than previously anticipated, and prices are slated to rise an additional 2% to 3% over the second half of 2021, Kroger CFO Gary Millerchip said during a call with reporters."

Biden is blaming the Chicken Pluckers Cartel. His economics flunky Brian Deese said, "Just four large conglomerates control the majority of the market for each of these three products [beef, pork and poultry], and the data show that these companies have been raising prices while generating record profits during the pandemic. Those companies have seen record or near-record profits in the first half of this year."

So did Amazon.

So did Berkshire Hathaway.

So did Microsoft.

The economics flunky does not seem to have a problem with Red China's control of manufacturing.

The 5.3% inflation we pay is far less than the 8.3% inflation producers pay. Guess what? That gap won't last, and we know which way this will go.

Nestle’s Chief Financial Officer, Francois-Xavier Roger, told Reuters, "If we talk of 2022, it is likely that input cost inflation will be higher next year than this year. Our strategy is to offset anything we receive through pricing. The idea is to pass it on to the trade and to consumers whenever we receive it."

N-E-S-T-L-E-S.

Nestle's knows what's coming next.

12 comments:

  1. The Xiden regime is looking to blame others for the inflation they caused.

    The meat packing industry has been consolidated like this during the Sotero and Trump years.

    Incompetent, yes. On purpose, yes. Despicable, yes.

    ReplyDelete
  2. Gooder and harder, then goodest and hardest -- until voters learn. Thanks Instapundit!

    ReplyDelete
  3. Hunker down, folks; there's a bad moon risin', bad weather a-comin', and stock up your storm cellar while you can. And watch out for BAD POLITICKING a-comin'.

    ReplyDelete
  4. Miserable citizenry = easier recruitment pool for support for Socialism. Ask Jimmy Carter how that worked out.

    I don't blame fiscal policy ("stimulus" package), the culprit is monetary policy (the Federal Reserve FOMC directing the purchase of $120B in Bonds per month for the last year or so).

    ReplyDelete
    Replies
    1. Technically ("fiscal" vs. "monetary") you're correct, but at this point it's a difference that probably in practice does not matter.

      I really don't know how much leftists believe their own b.s. - but they clearly are running with the idea that borrowing money and giving it out somehow is a free lunch. The idea of having to pay back the loans seems to be non-existent - which indicates that those advocating this silliness have no intention of ever paying it back, and will keep doing so (hey, it's free money!) until they can't any longer.

      It's been notable for some time that for most leftists, the idea of "living the dream" is to have essentially a credit card that has no limit and no bills (the latter either don't exist, or just go... somewhere else).

      Delete
  5. I've been saying people would want to throw this crowd out and replace him with the real President when everybody's ox was gored.

    Buck Fiden. It's not for football anymore.

    ReplyDelete
  6. Corporations do not pay taxes. They collect taxes and send them to the government. Only people pay taxes. Things like corporations, land, houses, and office buildings do not pay taxes. Again, only people pay taxes.

    ReplyDelete
  7. N-E-S-T-L-E-S
    What comes out of Joe’s A-S-S?
    Bull…shite

    There is no middle ground any more because the LibCommies want it that way. Either you believe the government tools or you believe people who actually RUN BUSINESSES.

    ReplyDelete
  8. BLS can report what they want, but my take is that we've seen 3% inflation in food prices ALREADY from July through Sept. thus far. Admittedly many retail food prices have held steady (for now), but when individual price increases have occurred, at least at Walmart, they've almost always been 10% or more.

    ReplyDelete
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  11. LMAO.
    What goes around comes around.
    The people most hit by inflation are the Biden voters.
    Life's tough, it's tougher when you're stupid.

    ReplyDelete