We are experiencing - oddly enough - simultaneous inflation and deflation. Everyday items like food and whatnot are increasing in price while assets (real estate) are decreasing in price. Very very soon we will see an asset price crash in stocks and commodities should not be too far behind...When commodities go, prices for other goods should also come down - unless there’s some moronic new tax enacted...
This is an understatement. I have been tracking what is happening in food, and there are going to be whipsaws that are impressive.
For example, the big processed food makers have been begging the administration to ease sugar quotas for months now, because US inventories are close to running out, but they are being ignored.
Add to that congress’ mandate to divert vast amounts of corn, and thus corn syrup, to ethanol production. And, the actions of a federal judge have put off 95% of our sugar beet production for an estimated two years. That is, no sugar beets will be planted.
In other countries, sugar is already being speculated into shortage, so even if the barriers are lifted, the US may only have scant sugar at sky high prices.