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As prices have continually risen and as disposable incomes continue to fall, the middle class gets thrown in the gutter and society continues to become low class people. The products simply do not get bought as they used to. Corporations will have to eventually lower prices in order to get some demand.
Consumers just aren't buying anymore, they buy just enough fuel to get from point a to point b. People are buying only the bare necessities to live these days among all the other financial issues brewing. Will we fall into deflation?
I would say more likely than high inflation. Today most folks buy something at the expense of not buying something else.
But business models today seem to increase prices on the sales they do have to compensate for the lost sales. Less sales at higher margin cost less to handle.
Commodities are actually breaking down to multi year lows... oil, gas, metals...
Stock market is overinflated and real estate in some areas..
Price of technology has gotten cheaper (flatscreen led tvs, bluray players) and thanks to jobs being exported and things being made with lower quality materials along with automation and faster product production due to better processing power inflation has not been extreme... the average working class can still afford things, and cable tv is not a necessity... Id say housing and property taxes and utility costs make up the burden of peoples costs along with health care.
Have commodities been expensive because of easy credit and market speculation or actual demand?
For some commodities, yes. Gold and oil especially, but they were bid up to ridiculous levels. Wheat and corn as well due to record crop. But overall it does not appear a risk. Statistically the two biggest expenses are housing and transportation. The latter may ease down from lower fuel costs.
Honestly, I am totally confused and do not know what to make of the current economic situation and what inflation is going to do.......really, I am puzzled.
My impression is the Fed can keep both the stock-market and housing markets(in many areas) going up and up and up.......for quite a while longer. This may be having the effect of keeping other inflationary/deflationary forces in check, I think.
If and when the whole, well, what I feel like is a scammish recovery, goes bust......I suspect inflation will go one way or the other in a dramatic fashion......maybe!
Oh it is decreasing in a major way aside from essentials. You do not need to read Wall street papers to see it. Shopping centers are half full, middle class restaurants never have lines such as Darden chain Olive Garden and alike, also laid off thousands recently and sold off the Red Lobster. Retail is down aside from foreign tourism in tourism areas. Jobs are down and millions are out of work or working well below standards. Auto buying was up mainly from immigration increases but that is now falling as well. Prices are far too high and disposable income is not there. Another sign is to look at Atlantic city recently closing over 5 resorts and it is not because of Foxwoods.
Honestly, I am totally confused and do not know what to make of the current economic situation and what inflation is going to do.......really, I am puzzled.
My impression is the Fed can keep both the stock-market and housing markets(in many areas) going up and up and up.......for quite a while longer. This may be having the effect of keeping other inflationary/deflationary forces in check, I think.
If and when the whole, well, what I feel like is a scammish recovery, goes bust......I suspect inflation will go one way or the other in a dramatic fashion......maybe!
It seems as nothing is going to be sustainable so something eventually will have to bust. Most people were expecting inflation, but experts are now starting to mention the least expected being deflation.
Oh it is decreasing in a major way aside from essentials. You do not need to read Wall street papers to see it. Shopping centers are half full, middle class restaurants never have lines such as Darden chain Olive Garden and alike, also laid off thousands recently and sold off the Red Lobster. Retail is down aside from foreign tourism in tourism areas. Jobs are down and millions are out of work or working well below standards. Auto buying was up mainly from immigration increases but that is now falling as well. Prices are far too high and disposable income is not there. Another sign is to look at Atlantic city recently closing over 5 resorts and it is not because of Foxwoods.
That article is more than 6 months old. I'm not seeing these half full shopping centers or retail. I guess you didn't read my link. Retail sales aren't dropping either
Atlantic city is a crap hole that is overpriced and only offers gambling. It's struggled for a long time. It's not vegas and will never be. Las Vegas setting records
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