Homesteading Forum banner
1 - 18 of 18 Posts
G

·
Discussion Starter · #1 ·
The decline in consumer prices was just the latest symptom of an ailing economy. On Tuesday, the government reported that wholesale prices dropped a record 2.8 percent last month as commodities prices plummeted on slumping worldwide demand. Crude oil prices, which peaked near $150 a barrel this summer, are now hovering at $55 a barrel, and the prices for gold, silver and other metals have collapsed.

http://www.nytimes.com/2008/11/20/business/economy/20econ.html?_r=1&partner=rss&emc=rss&src=igw
 

·
Registered
Joined
·
6,727 Posts
Food prices are still going up. Sounds like they are playing with the numbers again.
 

·
Registered
Joined
·
1,157 Posts
Yes. I've seen the prices in goods drop dramatically here in DC too.

It's outrageous! What can we do to get prices up again? I paid $1.75 for gas last week in NJ!

Maybe we should demand to PAY EXTRA!!
 

·
Registered
Joined
·
13,422 Posts
Food and gasoline are not included in the consumer price index. It tracks household spending in items such as clothing, new televisions, etc. So yes, they are indeed playing with the numbers.

My belief is that, as the cost of food rises, people are spending less on frivolous purchases and therefore retailers are having to mark down those items to move them. It's a sign that the system is slowly grinding to a halt. Others who don't believe as I do would say that it's just a temporary slowdown.
 
G

·
Discussion Starter · #5 ·
My belief is that, as the cost of food rises, people are spending less on frivolous purchases and therefore retailers are having to mark down those items to move them. It's a sign that the system is slowly grinding to a halt. Others who don't believe as I do would say that it's just a temporary slowdown.
I agree.
 

·
Registered
Joined
·
1,013 Posts
I have no spare money to buy "things" these days, so dropping prices doesn't help me. I haven't noticed food prices doing anything other than skyrocketing.
 

·
Registered
Joined
·
1,905 Posts
Food and gasoline are not included in the consumer price index.
"core" CPI excludes food and energy, on the assumption that they are more volatile and generate "noise" in the trend, but the overall CPI still includes food and energy costs.

however, the CPI is grossly manipulated by the politicians, primarily to same money on social security payments. for details on how they do this, a very good site is:
http://www.shadowstats.com/
in particular, see the article about CPI:
http://www.shadowstats.com/article/56

i agree with your other comment, that consumers are cutting back on non-essentials, and so retailers are having to cut prices significantly to move those goods, while essential goods aren't being cut quite so much. Early/mid october it seems lots of business activity fell sharply and quickly, and i've seen multiple stories about it in the blogsphere.

--sgl
 

·
In Remembrance
Joined
·
28,242 Posts
Feed prices went up again, about 10% since last month.
 

·
Registered
Joined
·
7,798 Posts
I've noticed that lots of stores are having pre-Thanksgiving sales to get the holiday season jump started. Retailers are afraid that this Christmas will be bleak because so many people don't have money for junk.

I've also noticed that my local grocery stores are only having sales on the convenience and high priced items (basil infused olive oil, etc). My local Bi-Lo is selling some things half price clearance because they are going to stop stocking them. I got a battery powered toothbrush for $5 that usually sells for $12+. And I bought every scrubbie sponge they had on the shelf for .50 each instead of $2.

On a happy note, I saw gas for $1.96 this morning!
 

·
Registered
Joined
·
12,333 Posts
If wood, copper, and steel fall in prices it'll be a blessing. I need a lot of storebought goods (stuff I can't fabricate here at home) and if the price is lower, I'll be able to afford more.
 

·
Registered
Joined
·
1,053 Posts
We are entering a deflationary recession, and possibly a deflationary depression, to be followed by wild inflation once all that electronic "liquidity" catches up with us.
 

·
Premium Member
Joined
·
4,443 Posts
Said on the world news that some department stores are dropping prices as much as 75 percent to attract business and some places may file bankruptcy as soon as christmas is over. Many people interviewed said the price dropping wasn't going to attract them cause they simply just don't have the money to spend this year.
 

·
Appalachian American
Joined
·
10,639 Posts
My thought is that people are doing what comes natural in a down economy, and retailers who were unprepared for the downturn are having to scramble to move their surplus merchandise.

This could be good in the long run if people can get into the habit of being frugal, and realize that hard times do happen. It is a stark reminder to people why they need to save and avoid debt if possible. It seems that most folks these days have never learned the things that our parents knew from childhood.

On the business end, learning to run a more efficient business will ultimately help those who survive. Many of the folks who find themselves without jobs in this economy will eventually turn to self employment for a livelihood, and out of that many new businesses will be born, creating new jobs over time.
 

·
Mountaineers are free
Joined
·
945 Posts
I am amazed at the number of people I work with that "Still don't get it" They are constantly shopping the video game web sites, looking for new and bigger t.v.'s claiming that this is short term and they are saving money by buying now. On the good side, I keep finding stuff for my long term preps at tremendous savings... Bought a turkey fryer last week at a really good price... Great for canning.

Christmas here is homemade for the most part, with very little being purchased from the big box. No mater how this turns out, I think most on here have learned, save for what you want, paycheck to paycheck won't cut it in the mean world. Well off to install my new wood stove, cutting a big hole in the roof this morning for the pipe adapter... Wish me luck :)
 

·
Defending the Highground
Joined
·
580 Posts
I am amazed at the number of people I work with that "Still don't get it" They are constantly shopping the video game web sites, looking for new and bigger t.v.'s claiming that this is short term and they are saving money by buying now. On the good side, I keep finding stuff for my long term preps at tremendous savings... Bought a turkey fryer last week at a really good price... Great for canning.

Christmas here is homemade for the most part, with very little being purchased from the big box. No mater how this turns out, I think most on here have learned, save for what you want, paycheck to paycheck won't cut it in the mean world. Well off to install my new wood stove, cutting a big hole in the roof this morning for the pipe adapter... Wish me luck :)
I agree with you on this point completely.

DH and I have been dialing-down our spending due to increases in food and (anticipated) energy prices. While our friends were out taking vacations and buying more "stuff" this summer, we were insulating, finishing up household projects, canning and cutting up firewood. (Yeah...we're pretty boring!) Now that the cold weather has set in, we're pretty much set while our friends are constantly complaining about how expensive food is. We tried to tell 'em, but they were too busy spending their 'stimulus' money (plus additional money they had to add to get the "stuff") to think about how they'll pay their heating bills this winter. Oh well...:frypan:

RVcook
 

·
Incubator Addict
Joined
·
3,111 Posts
We are entering a deflationary recession, and possibly a deflationary depression, to be followed by wild inflation once all that electronic "liquidity" catches up with us.
And deflation scares me more than inflation. Especially because we still have one major fixed debt (mortgage) that is still going to require the same payment even if there is no money circulating.

We do still purchase a large percentage of our goods at this point, but we could avoid most of those purchases. Meals would not be as interesting, and our house would be a lot darker and maybe colder. There would be more time spent in the garden and tending the animals. But we could make it. You take the house away though, and things begin to take on a different look.

As far as grocery prices that everyone is experiencing, this time of year there are usually good sales on a lot of staples because of Thanksgiving. So I have had trouble differentiating between "sales" and lower prices. And although I have seen prices rise across the board in the last couple years, I have still found that with very careful shopping and staking out sales, my grocery total has not risen too significantly. I am sure part of it is that I have been blessed that we could decide to live in places with a more moderate cost of living.

Kayleigh
 
1 - 18 of 18 Posts
Top