From 1970 until 2010 the price of food dropped 30% relative to the earning power of the average American. That's a pretty big number.
Not entirely true if you use a CPI unencumbered by a series of 'enhancements' that suppress inflation.
Posted on 06/25/2012 12:56:51 AM PDT by Uncle Slayton
I caught some newsie commentator a few weeks ago say that the decline in oil/gas prices was due to the declining (world) economy.
That doesn’t make since. It was NOT a roaring economy that sent the gas prices over $3 and nearing $4 due to demand.
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Gas prices started falling when, supposedly, there was talk of Obama going to release oil from the Strategic Reserve. [Did he, or was it just pre-election rhetoric?]
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Something else is behind this recent decline.
One article a couple of weeks ago said that Obama had made a deal with the Saudi’s to reduce oil prices until after the election.
That sounds more likely.
The economy was producing decent numbers through the 4Q11 and 1Q12. During the second quarter almost all of the economic indicators have rolled over and are either negative are heading negative. The economy has slowed significantly even from it’s anemic rate.
My wife works in a factory. She had mandatory overtime everyday last week, one day was 12 hours.
They’re backing off a bit this week, but it’s mandatory overtime today.
Saudis are pumping over 10 Million Barrels a day
More Oil is being found ( damn lies by environmentalist lied )
Hurricane season could make cost go up.
From 1970 until 2010 the price of food dropped 30% relative to the earning power of the average American. That's a pretty big number.
Even with the recent uptick, a large part of which is energy related, we still have some of the cheapest food in the entire history of the world.
Whatever the reason for the decline, you can be sure that Obama will take credit for it in the campaign.
And you can count on any economic numbers that the government produces to look increasingly rosy as we approach November.
The only way Obomba can win is to lie every time he opens his mouth. Of course, that’s the one thing Obomba is really good at.
Hope you’re right.
One of my customers used to take 15 loads a month.
He’s down to four or five these days...
We rotate our bulk buys and there is definitely sticker shock when it comes time to replace things.
We invested in a Jacard meat tenderizer...about $25 on Amazon. Basically, many razor sharp knives that tenderize the meat and cut brining and cooking time, as well.
Whole muscle cuts have become quite tough. A friend who buys from a specialty butcher has also commented on recent steaks being tougher. I see less marbling in rib eyes, too. I think all but the premium butchers are selling grass-fed beef, due to the price of corn, or at least shortening the fattening-up period. . OTOH, corn is pretty low for June, especially considering we have drought conditions in so many places. I have also read that ethanol subsidies were cut, which would remove that pressure on corn prices.
I know I can no longer justify the prices from Allen Brothers and many people report that the quality of other premium meat vendors has dropped.
Home dry-aging is becoming popular.
http://www.drybagsteak.com/shop-drybag-steak-in-house.php
Thanks for the tip on dry-aging. I have many, many, many Filet Mignons, Steakburgers and 3-5lb Rib Roasts from ABSteaks.com (at 2011 dollars) in the huge freezer, but when they’re gone, that’ll be it. I’ll check-out your link’s feasibility for me.
Did they have layoffs previously?
We are finding most places are short staffed and that is why a small uptick in business means delays. If they hire more and business drops off they have to layoff again. Contrary to popular belief most businesses do not do that willingly. OTH, they risk orders going elsewhere to get serviced.
Yeah I saw that when it came out. Saudi production levels have a marginal impact at best. The synchronized global economic slowdown has a far larger impact and is the cause of the current price decline.
Oil prices are falling because, despite the fact that people have free time thanks to the 0bamunists ecnomics making them unemployed, they can’t afford to go anywhere, so demand has dropped.
What does she make coffins? ;-)
The Saudis are much more afraid of Iran than we are. It is a Sunni/Shia thing. It would also shut down a lot of other competitors with higher fixed cost.
I have found that all the pallet, box and crating people in the lumber industry are very busy. Some of them have had record years in the last two.
It is the effect of the cheap US dollar on the world economy. It makes things more expensive here in the US , but less expensive overseas.
For example, say you are a Canadian company in the market for a new excavator. A few years ago the CAT model was probably too expensive and you would have bought the Hyundia instead. Now because of the strength of the Canadian dollar in relation to the US dollar the CAT is a value delivered to your business in Winnepeg. So Caterpillers factory orders go up. Therefore, alltheir suppliers of parts, crates to hold the parts , etc. go up.
She works for a company making medical appliances, plates screws, pins, etc. for broken bones and so forth.
They allowed attrition to reduce the work force a bit, but she has overtime at least 2 days a week,, usually voluntary, but occasionally forced when they run behind.
Any orders received by 5 pm MUST be on the Fedex truck before 6:30 PM, and there are hundred of orders that arrive at 5 pm that MUST be in an operating room anywhere in the US by 5 AM next day, ready for surgery.
Zero mistakes allowed, and ANY mistake, even the slightest, such as puting the part in the box the wrong way, usually is recorded by the doctors cell phone camera and arrives as a complaint the same day.
Oil Prices are a joke, worldwide we are using less oil per day than we were a decade ago, but the price keeps going up, well beyond the rate of inflation.
Its a speculator driven market, has nothing to do with demand and supply anymore.
They aren’t selling grass fed beef, it takes 3-4 years for a cow to reach slaughter weight when grass fed, and it tastes completely different than corn fed beef. Corn fed beef is slaughter weight in as little as 14 months
Anyone selling grass fed beef is charging a premium for it.
What may be happening is folks are slaughtering the corn fed beef sooner, or restricting the access to the amount of corn the beef have available.
Though this is generally counter productive since this means a lighter cow at auction, which is where they make their money.
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