DEFLATING EXPECTATIONS 2
After some time of decreased costs which was probably a surprise to
most experts, especially after gold went from $1900 to $1,000 so quickly (
which should have proved to everyone that the big bank players controlled the
entire Western civilization [ the Russians for now aligning with the Eastern
bloc ] economy and manipulated it electronically, because the demand for gold
was going up as supply fell ), a few folks begrudgingly admitted that inflation
was not our only future. Henceforth and
forever more, they proudly triumphed with the same fervor once reserved for
warnings of hyperinflation, basic needs would see inflation and luxuries would
see deflation. There! Problem solved with those pesky crashing
prices questions. Now, I’ll be the first
to admit that I was firmly in the hyperinflation camp. Just as I was in the Immediate Crash With
Peak Oil Camp. And I had no problem with
the Insane Food Inflation idea. I’ll
readily admit it. But I think I have a
good excuse. I tend to over-panic. I’m a bit of a Cassandra. I think assuming the worse is a prudent sound
strategy ( since Timing The Collapse is a fools game, I preach the Prep
Yesterday In Case The Crash Is Tomorrow point of view ). But I have to say now, just because I
absolutely loath the idea of running with the pack, any pack, damn herbivore
sum-bitches, just to be different and play the Devil’s Advocate, I’m kind of
liking the new idea of Rollercoaster Prices For Everything.
*
Remember how the Doomer Peak Oilers, myself included, assumed that
scarcity would bring high prices? Yet
instead what happened was that as one price hike decimated demand and industry
participants, the price crashed down.
Then repeated. Despite less oil (
total BTU‘s delivered, not total barrel count ), being available, scarcity did
not always get higher and higher prices.
After oil went over X amount, companies went bankrupt, driving down
demand, workarounds were found at the surviving companies to decrease demand,
consumers finding they lost half their household income cut back, etc., and
that demand never reappeared when prices went back down due to demand
destruction. When a company is wiped out
or a consumer loses employment, even if the oil price falls in half or to a third,
there is one less customer with ANY money to buy at the cheaper price. And I submit to you, my loyal minions, that
the exact same thing is going to happen to essentials such as food. There is SOOOO much Value Added price
elasticity to food that consumers can keep downgrading and bankrupt food supply
companies, causing the remainder to drop prices in a panic as they are one loan
payment away from insolvency. People
don’t just buy wheat and potatoes and raw meat, but pizza and specialty loaves
of bread and French fries and pre-cooked deli items and eat out meals. Consumers can keep downgrading price-wise as
they back away from luxury foods. And
each food company panic to profit will cause a drop in prices prior to the next
surge as the next wave of shortages hit ( caused by the next drought, the next
animal disease, etc. ). Next article,
I’ll cover other Inflation Forever items such as rent and college and cars.
END
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*Contact Information* Links To Others* Land In Elko* Lord Bison* my bio & biblio* my web site is www.bisonprepper.com
*My books: http://bisonprepper.blogspot.com/2015/04/my-book-links.html
* By the by, all my writing is copyrighted. For the obtuse out there