Not Out of the Woods Yet
By Jim Bauer
@porwest (112890)
United States
September 15, 2022 8:29am CST
You know, there's inflation, and then there is what is called the "food-at-home index," which is basically a measure of changes in grocery store prices. It's not an inflation adjusted number, mind you. So, when the food-at-home index is showing the biggest percentage rise not since 1979, that is very telling of the real cost of inflation and how hard it is hitting people.
Especially the poor.
It's not enough that inflation itself continues to rise at record setting paces, purging hard working Americans of their earned dollars. On top of that, even though oil prices have been falling—in part due to an artificial oil supply from draining the strategic reserves—it looks like oil may not drop further as the Biden administration considers refilling the strategic reserves if oil drops to $80 a barrel.
It's $81.25 now.
It just means that there will likely be no more relief at the pump. But food prices may continue to rise due to other inflationary influences in the market.
Luckily the Fed is taking a hard line on raising rates to slow the economy down and curb inflation. Something I applaud actually. At the same time there is every indication that a recession is looming.
Something we actually need by the way.
But that will mean even more pain for Americans since recessions lead to layoffs, meaning that with job losses coupled with continuing inflation—things could become certainly interesting for a lot of people.
The bottom line here is that I think we are far from out of the woods, so the only thing one can do is hunker down and have a plan.
10 people like this
8 responses
@FourWalls (86830)
• United States
15 Sep 22
I’m very glad the rail strike was averted, or that could’ve provided the handbasket for the economy to go to hell in. As you said, not that we’re out of the woods by any stretch of the imagination. It took until the first year of Reagan’s second term for inflation to get under control, that’s how bad it was in the late 70s. And, unlike now, Reagan was actively working to reduce inflation.
2 people like this
@porwest (112890)
• United States
16 Sep 22
This is where I get to be the guy that gets to display the reality of things I say like, "Just because it's Biden doesn't mean it is all bad." I will give Biden some praise on this one—because a rail strike would have come at a very terrible time when we already have enough supply chain issues as it is.
On the latter part, you are darn tooting right. Not only did Reagan have a plan to fight inflation, he acknowledged inflation existed.
Biden is still touting some great economic recovery that exists only in his own mind.
When your cart is half as full now than a year ago and costs three times more than you paid for a full cart, you can do all the talking you want at the White House podium. People know otherwise.
1 person likes this
@marguicha (230365)
• Chile
15 Sep 22
In my country, inflation hits the poor more too. Besides that, the poorer people in my country know less how to use their money than people with more education. At the top of the pandemia, our government gave money for the less affluent so that they could eat better while there was recession. And you could see them at the malls, buying big smart TVs instead of groceries
. Leticia, my ex maid and dear companion, has been able to have a good life for her and her people because she does not do that.
. Leticia, my ex maid and dear companion, has been able to have a good life for her and her people because she does not do that.2 people like this
@porwest (112890)
• United States
16 Sep 22
This is always the problem with "stimulus packages," as we call them here. It never goes to what it is intended to go for, and the same problem occurred here. People bought things. Not food. And did not use it to pay rent or other bills. They basically squandered it, which is not at all unexpected.
What's worse, is none of it was held either, and so there is nothing left to help to deal with the reality of things costing more. It's a snowball kind of a thing if you think about it.
And no amount of money will solve it. You nailed it. Only being educated about money can solve a money problem.
@RebeccasFarm (91297)
• United States
15 Sep 22
Oh it is killing me this inflation.
1 person likes this
@porwest (112890)
• United States
15 Sep 22
It is hurting a lot of people. Not much that we, individually, can do about it except wait it out and deal with it and hope that the right decisions are being made to curb it. On the latter I am not confident that is the case, so who knows how bad this can really get.
1 person likes this
@RebeccasFarm (91297)
• United States
15 Sep 22
@porwest Well, you are right about that, not much we the ordinary can do. Even me am shocked at things..usually I am well able to manage.
1 person likes this
@porwest (112890)
• United States
15 Sep 22
@RebeccasFarm Going to a grocery store these days definitely requires more planning and thought these days, and I find myself leaving a lot of things on the shelf.
1 person likes this
@LindaOHio (222728)
• United States
16 Sep 22
It's at times like this that I'm so glad we don't live paycheck to paycheck.
1 person likes this
@Nakitakona (59987)
• Philippines
3 Oct 22
Yes, hunkering down may relieve an economic crisis but it's just temporary in nature. However, plan your work and work your plan sound good if not better.
1 person likes this
@porwest (112890)
• United States
10 Oct 22
@Nakitakona And yet, they are most often disappointed and frustrated. lol
1 person likes this
@Nakitakona (59987)
• Philippines
9 Oct 22
@porwest Most people are like that. Why? They don't want to be disappointed or frustrated. They rely on their impulse.
1 person likes this
@moffittjc (128840)
• Gainesville, Florida
17 Sep 22
I was just commenting yesterday that some people haven’t got the message about the recession, as we have been receiving record amounts of freight coming into our store over the past few weeks. At this time of year we usually get between 12-15 truck deliveries per day, but over the past 2 weeks we have been getting more than 20 truck deliveries per day. We have been scrambling to hire additional people to help manage all that extra freight. And it’s not just inventory we’ll be stuck sitting on, most of it is special orders, and even the regular freight is flying off the shelves. At some point we should be seeing a slowdown due to the recession, but it hasn’t started yet, at least here where I live.
@NJChicaa (127165)
• United States
15 Sep 22
I read a headline today that said something to the effect that the fed might actually want more unemployment as that would ease inflation. I didn't have time to read it at the time and now I don't remember where I saw it--maybe Drudge. It didn't make sense to me. I will have to read it if I can find it again.
1 person likes this
