The news you're not supposed to know...

Austrian Economics: Understand Economics, Understand the World
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
Article posted Apr 03 2011, 1:37 PM Category: Economy Source: The Economic Collapse Print

Wal-Mart CEO Says "Serious" Inflation Is Coming

by Michael Snyder

Thank you Ben Bernanke for all the money printing.  Thanks to a massive injection of cash into the financial system by the Federal Reserve and other central banks, the price of almost every major commodity has skyrocketed over the past six months.  Now those price increases are starting to filter down to the retail level.  During a recent meeting with USA TODAY's editorial board, Wal-Mart CEO Bill Simon said that rising inflation in the United States is "going to be serious" and that Wal-Mart is "seeing cost increases starting to come through at a pretty rapid rate."  For many years Wal-Mart has been famous for their "low prices", so for the head of Wal-Mart to publicly warn that much higher prices are coming is more than a little alarming.  There are millions of American families that are already drowning in debt, that can barely pay their mortgages and that are struggling to put food on the table for their families.  So what is going to happen to the U.S. economy when prices start rising substantially at places such as Wal-Mart?

But Wal-Mart is not the only major corporation that says that inflation is coming.  Hershey has just announced price increases of about 10 percent on their entire line of products.

So if you like chocolate you better start stocking up now.

Cocoa production is being seriously threatened by the political unrest in Africa right now.  The recent chaos in the Ivory Coast is certainly not good news for Hershey, but the truth is that all of the long-term trends indicate that prices for commodities such as cocoa, coffee and sugar are going to move up anyway.

In fact, Aaron Smith, the managing director of Superfund Financial, believes that coffee, sugar and cocoa will all be five to ten times more expensive by 2014 than they are today.

So if you are addicted to coffee or to sugar you might want to start making your plans accordingly.

But the truth is that inflation is not limited to just a few commodities.  Virtually every major agricultural commodity has soared in price over the past 6 months to a year.

So what is causing all of this?

Well, there are several factors which are major contributors.

First of all, overall global demand continues to increase.  The population of the world continues to grow, and as the economies of nations such as China and India develop, millions more people want to enjoy luxury items such as chocolate and coffee just like Americans do.

Secondly, all over the world central banks have been recklessly printing money in an attempt to stimulate their economies, but this is also going to end up causing tremendous inflation.

So how does that work?

Well, it is actually very simple.

For example, in the United States when there are more dollars chasing the same number of goods and services, what is going to happen?

Prices are going to rise of course.

And we are seeing this happen all over the world right now.

Thirdly, as the price of oil continues to rise, it is going to increase the cost of everything else.  The era of massive amounts of cheap food being transported around the world using massive quantities of cheap oil is rapidly coming to an end.

The following chart if from the Federal Reserve.  It shows that the price of oil is rapidly moving back to the level it was at prior to the financial crisis of 2008.  In fact, this chart is slightly out of date.  At last check, the price of oil was over $107 a barrel.  So what is it going to mean for our economy if we soon surpass the record that was set back in 2008?....

Fourthly, global instability is also going to cause prices to continue to rise.  Over the past year we have had really bizarre weather all over the globe, we have seen revolutions erupt all over Africa and the Middle East and the third largest economy in the world (Japan) just experienced the worst disaster that they have been through since World War 2 ended.

When things are unstable, economies don't work as efficiently.  That means that less goods and services are produced.

But when there are less goods and services being chased by an increasing amount of money that tends to push prices up.

The truth is that inflation is here, and if the CEO of Wal-Mart is right, it is not going to go away any time soon.

In fact, many believe that the world is on the verge of another major economic crisis.

If you stop and think about it, every major region of the world is dealing with very serious problems right now.

Right now, the European debt crisis is worse than it ever has been before.  Did you notice that Standard & Poor's just downgraded Portugal's debt for the second time in a week?  Now Portuguese debt is rated BBB-, which is only one level above junk status.

That is a very alarming sign.

Asia is dealing with the Japanese crisis, nearly all of the countries in the Middle East are dealing with protests or full-blown revolutions, Africa is dealing with the war in Libya and quite a few revolutions of their own, and the U.S. is still deeply struggling with a whole host of economic problems.

Most Americans don't realize just how precarious things are at the moment for the global economy.  The financial crash of 2008 did a lot of lasting damage, and the next wave of the financial crisis could potentially be even worse.  Unfortunately, the global financial system is more vulnerable than ever right now.

So what are the Federal Reserve and other central banks going to do the next time a major financial crisis happens?

They are going to print even larger quantities of money and they are going to give even larger bailouts to their friends of course.

The dollars that you have today are never going to be more valuable than they are right now.  Don't wait too long to use them.  If you have a huge pile of dollars sitting in the bank your wealth is slowly but surely rotting away.

Very hard economic times are coming.  The inflation that the CEO of Wal-Mart is warning about is only the beginning.  Eventually we are going to see inflation in this country that is going to be absolutely mind blowing.

But don't wait until the storm hits to start preparing.  We all have time now to prepare, so let us be wise and make the most of it.
Michael Snyder writes The Economic Collapse Blog.

Latest Economy
- Good News: Law Schools In Decline, Bar Passage Rates Plummeting
- Singapore: The Power of Economic Freedom
- Schiff: The Shadow Rate Casts Gloom
- Neil Cavuto Embarrasses Student Who Wants Free College and Has No Idea How to Pay For It
- Pocketbook Pain: The Rapidly Rising Cost of Living Is Absolutely Killing The Middle Class in America
- The Three Industries That Love The TPP: Hollywood, Big Pharma & Wall St.
- Sexist Markets - 77 Cents On The Dollar?
- Former Reagan Administration Official Warns That Financial Disaster Is Dead Ahead

Comments 1 - 2 of 2 Add Comment Page 1 of 1

Posted: Apr 04 2011, 2:05 AM

17431 When you see that trading is done, not by consent, but by compulsion -- when you see that in order to produce, you need to obtain permission from men who produce nothing -- when you see that money is flowing to those who deal not in goods, but in favors -- when you see that men get richer by graft and pull than by work, and your laws don't protect you against them, but protect them against you -- when you see corruption being rewarded and honesty becoming a self-sacrifice -- you may know that yor society is doomed. -Francisco d' Anconia

Atlas Shrugged p.383
By Ayn Rand

Posted: Apr 04 2011, 5:40 AM

<... you may know that yor society is doomed.>
what a relief. so many are so tired of war, so many are tired of acting, so many are tired of the entire chirade.

<"Serious" Inflation Is Coming>
the american people are up for serious problems, with or without walmart, with or without money.

<So if you like chocolate you better start stocking up now.
Cocoa production is being seriously threatened by the political unrest in Africa right now. >
south africa same company. actually that victory chocolate was that 1984 nonsense. good bye big brother.

Add Comment


Verification *
Please Enter the Verification Code Seen Below

Please see our About Page, our Disclaimer, and our Comments Policy.

This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy

Advanced Search


Remember Me
Forgot Password?

Video Of Chicago Cop Murdering Teen Shows Another Shooting of Convenience - 11/25Downing of Russian Su-24 Looks Like a Planned Provocation - Russian Foreign Minister - 11/25World's Most 'Adorable' Drug Kingpin Is Actually The Daughter of Texas DEA Head Honcho - 11/26California Police Used Illegal Wiretap Warrants in Hundreds of Drug Prosecutions - 11/25VIDEO: FSA Rebels Destroy Russian Chopper With US-Made TOW Missile - 11/25Good News: 27% Of Americans Say Government Is Their 'Enemy,' Not Their 'Friend' - 11/24Family Gets $4.9m After Cops Beat Mentally Ill Son to Death On Video and Walked Free - 11/24Heroic Cops Protect Community by Raiding a Group of 90-Yo Women Playing Mahjong - 11/26

Man Follows Speeding Cop, Finds Out He Was Speeding To Buy PeanutsMission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement'Cop Shoots Couple's Dog, Threatens Jail For Trying To Save Dog's LifeSWAT Team Shoots Teen Girl & Her Dog During Pot Raid On Wrong HomeDurham, NC Cop Testifies Faking 911 Calls To Enter Homes Is "Official Policy"Indiana Sheriff Says US A "War Zone" To Justify New MRAP Military VehicleTampa Cops Surveil Pot Dealer, Catch Him Selling Pot, Raid His Home & Kill Him"You Just Shot An Unarmed Man!": Witness Says Police Shot His Friend With His Hands Up