Posted on 03/14/2014 6:42:27 AM PDT by SeekAndFind
Stock markets around the world fell today, led by the 246 point dive, or 1.5%, for the U.S. Dow Jones Industrial Average and the 1.9% drop for German stock market index. Analysts generally pointed to worries about a shrinking Chinese lending and the potential trade war between Russia and the West, but I am more concerned that since the beginning of 2014 food prices have skyrocketed. The Federal Reserve must be concerned that their international support for “cheap money policies” to stimulate economic growth may be funding commodity speculation that is driving prices higher and creating wide spread misery. If the Fed decides to raise interest rates to dampen speculation, I believe stock and commodity prices are in for a hard fall.
Margin debt on stocks is now higher than at its last peak in 2008, right before the stock and commodity markets crashed. This willingness to speculate on margin may also explain the big jump in food prices since the first of the year as shown below:
Cattle Hogs Grains Milk Coffee
+28% +25% 14% +17% +67%
(Excerpt) Read more at americanthinker.com ...
Scares the fed???
Know how it scares me and my spouse?
What’s the % for bullets?
I'm economy-ignorant, but even I can read the writing on the wall. It makes me a bit leery of my retirement plans because I'll be locked in at pre-inflation starting numbers and the buffer I've built up may not withstand the assault.
Tell me about it!
I’ve been laid up from a surgery for the last 2 months. Haven’t really been able to go too many places. So it took me some time to realize, hey, gas prices have jumped quite a bit. They aren’t fluctuating like they used to either. Staying in the high 3.50’s range and into the low 3.60’s.
This and the high price on food right now is killing us.
I don’t see it going down anytime soon either.
Why are they scared?
All they have to do is exclude food from the CPI as “too volatile” and tell the LIVs there is no inflation.
It scared us into tripling the size of our food storage pantry as soon as the Kenyon illegal alien was elected in 2008. We keep it topped off and rotated weekly. We are still worried but feel better prepared for what may come down the road.
The price of gasoline has remained doubled since George Bush was president.
Everyone who goes to the grocery store knows prices are going up fast. From one week to the next an item will go up 10%. Its very worrisome. Stockpile food while its still affordable.
Three necessities. One is to pay off all debts, including mortgages and car payments. The other is to stay out of those retirement savings as long as possible. The third is to not have huge debts anticipated...roof, plumbing etc...get them done before hitting retirement.
If you retire before reaching that point, continue bringing in income, even if it's a yucky retail or restaurant job, until you've reached that point.
I've done it that way. You'd be surprised how little it takes to comfortably live on when you're at that point.
Ohhh...one more thought. If I had to stretch the budget even more, the day could come when to do that it would mean no auto. It's a good idea to live in a place where you could survive without a car if you had to.
Re your auto comment: Urban areas (where you don’t NEED a car) are also the areas most dangerous if the SHTF.
Well, Bush ended his term with the price of gasoline at $1.87. That counts for something.
In general, that's true, but there are places. For safety, a lot of small towns can keep the big-city problems out, as long as there's some physical separation from the chaos. Some of those have everything you need nearby.
I once lived in a town of 600 people which had everything
I needed within walking distance (supermarket, post office, pharmacy, library, etc.)
[ Everyone who goes to the grocery store knows prices are going up fast. From one week to the next an item will go up 10%. Its very worrisome. Stockpile food while its still affordable. ]
Been doing this for FOUR years now, been buying storable food on sales/coupons and then slowly rotating out the old food by giving to friends who have been directly affected by Obama’s policies before the food expires.
They are greatful for the extra food they don’t have to spend what little they have, and I keep my SHTF stockpile fresh.
Yes we rotate canned goods and pasta’s etc but from now on we are only buying freeze dried.
If you live near an LDS cannery they are open to the public. Most folks don’t know that. Their prices on #10 cans of long term storage food is incredibly affordable. We live near one and have bought cases of it. We eat the apple chips for snacks.
The house and one vehicle are paid for and the other car will be paid up this Summer - took the loan on it because it was no interest.
We both have retirement plans and hopefully SS, and are probable better off than many because we had a while to plan and to execute the plans. We will probably be fine unless inflation really screams and if the health care debacle displaces my military TriCare which I expect to be one of the next steps if Obama Care survives - being tied to the government as retired military and soon to be retired DOD civilian, we are less likely to be as exempted as those who the Dems count on as voters.
Have enough "luxury" items (TV/Internet/Phone w/internet, etc., that we can find ways to eliminate costs along with going to one car once I retire.
Makes me understand those who (rightly or wrongly) were promised retirement funds that went bust as unions and others took some hits - firmly against the union "sweet deals" but I can understand what it must be like to have the rug yanked out from under you with little or no time to develop a Plan B.
If I'm concerned, I figure there are many who are scared to death about their futures.
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