Posted on 02/03/2011 9:17:54 AM PST by FromLori
Companies contending with rising commodity prices are stockpiling rubber tires, cotton clothing and other goods, a maneuver that is aimed at insulating them from inflation but also could contribute to it.
Spice-maker McCormick & Co. stocked up on some ingredients and Monro Muffler Brake Inc. bought extra tires and motor oil, assuming prices of those goods will keep rising. Anton Sport, a small athletic-wear wholesaler in Tempe, Ariz., amped up its fabric purchases to avoid higher prices.
These pre-emptive purchases are a fraction of overall business activity, but the trend is being watched by economists and business executives. The stockpiling comes at a pivotal moment for the global economy, as central bankers scramble to judge the impact of raw-materials price increases and figure out whether or when to raise interest rates.
(Excerpt) Read more at online.wsj.com ...
Just what everyone should be doing.
A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.
Proverbs 27:12
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Which is artificially goosing all of our economic data.
Which is precisely what Bernanke hoped to accomplish through QE2.
“Which is artificially goosing all of our economic data.
Which is precisely what Bernanke hoped to accomplish through QE2.”
I wish more people understood that.
I started in November increasing my purchases of anything I sell that comes from a refinery.
Take Antifreeze, instead of 10 cases every other week,
I purchased 180 cases(5 pallets). I made money before it hit the dock. Even little things like WD40 are increasing.
I bet some economist will look at this and say the economy is
roaring back. Yet I’m building my inventory up with a 4-8 month
reserve and won’t need to make any purchases for that length of time.
The way I see it, There’s 2 upsides with this. The timing is perfect
with my fiscal year end and I have product on the shelf.
With the economy, manufactures have cut back their inventories and
our backorder rate has went way up, so the “just in time” crap isn’t
really working out that well.
The down side, I could be stuck with excessive inventory,
But I think my odds are pretty good.
If the SHTF scenario materializes, I have plenty to barter with.
“so the “just in time” crap isn’t really working out that well.”
LOL, that was my first thought. The SMARTEST IN THE ROOM people told us that JIT was the way to go. LOL.
Any company with cash and half a brain should be stocking up like mad. Quantitative Easing can ONLY bring even more inflation down the road. Things are still VERY CHEAP now, compared to what’s coming.
Of course the same holds for people. If you have spare cash, or even spare cheap credit, US IT and buy stuff that you’ll use anyway. I have 4+ years of EVERYTHING that I can think of...and it doesn’t even take up much room. Well, the paper towels are a bit space-consuming, but that’s about it.
Man you got that right. The average person doesn’t realize
the space and the weight of a decent supply of paper products.
TP and PT are a must !! :)
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