On the inflation front ...

[Alexx1401]

Chipotle raised prices six times since 2021 and kept them high — even as costs have flattened.

The result?

Profits jumped 110%. It authorized $400M in stock buybacks. Its CEO was paid $22.4M in 2023...1,354 times the median Chipotle employee.

What's really driving inflation?

Sounds like supply, meet demand. If they are selling something people are willing to pay for? Great. If they can double the price and people will still buy it? Great. That is how its supposed to work. I don't think I have ever eaten at one of their places. May have to try one just to see what's its all about. If they can keep raising the price and people will keep buying it? They have to be doing something that a lot of people like. Last time I was at a tire place getting new I had a bit to kill. Coffee shack sitting there so I went and had one. Damn thing was like $10 or so. Was it good? Yes. Would I go back for another? Hell no. While I enjoyed my cup I could see a steady flow of cars going through the little place paying that price. So they have a client base. Somehow I doubt this translates to the reason eggs and hamburger are so high is the people selling them are becoming billionaires all of a sudden. Even if they are? Its what a lot of people keep saying they want.

 

[Alexx1401]

The official blue-koolaid line is that the problem isn't inflation, but corporate greed, runaway capitalism, the evils of the American system, and the fix isn't fiscal responsibility but more socialism.

Joe and a few others keep saying that because the rubes who supported this mess will want to believe it. All the while those "greedy corporations" are funding the elections of the law makers telling the rubes they are going to get them. The law makers do this because it works. Has to have a lot of them laughing up a good one behind closed doors. Hell it works, why should they stop now?

 

[arakboss]

If buyers quit paying the high prices inflation would be lower. When Dave said eat rice and beans, he didn't mean with a side of guac and sour cream for $10 a serving.

 

[mhayd93]

Such as?

Kraft Foods; a company that operates in a staple market (food). The price hikes on their products attributed to inflation and high production costs are not leading to record revenue or profits.

 

[monkeybutler]

Kraft Foods; a company that operates in a staple market (food). The price hikes on their products attributed to inflation and high production costs are not leading to record revenue or profits.

Kraft foods is at the butt end of the market. Not a growth business. I would not expect significant profits. Just cash flow on a declining curve.

 

[mhayd93]

Kraft foods is at the butt end of the market. Not a growth business. I would not expect significant profits. Just cash flow on a declining curve.

Sure, but that has nothing to do with the point I was contending. If Kraft Foods had to jack up prices for their products, but didn't see a corresponding increase in their revenue, it helps to dispel the narrative that corporate greed is driving higher prices, not inflation.

Kraft Foods clearly had to increase prices in response to the increased cost of labor and supply costs—such as energy, raw materials, transportation, etc.—just to maintain the same level of profit (or less when you factor in inflation).

The "price-gouging theory" of why everything costs more reflects a poor understanding of capitalism and our current economic affairs in general.

 

[TTSX]

The people buying the food.

Troof. If the prices were so high people didn't want to pay them, they wouldn't and the profit margins would suffer accordingly. Sounds like people think the food is worth the price so why would they lower it? That's just bad business.

 

[arakboss]

Troof. If the prices were so high people didn't want to pay them, they wouldn't and the profit margins would suffer accordingly. Sounds like people think the food is worth the price so why would they lower it? That's just bad business.

Exactly, if I was a shareholder and the company said they wanted to lower prices just to save people money, I would want new management.

 

[arakboss]

Cure for food inflation? If you get the drug for free, maybe. Otherwise stuffing your face will be much cheaper in the short run.

Weight-loss drugs like Ozempic and Wegovy are causing people to spend less at the grocery store: study

People taking weight-loss drugs are spending less on groceries because their appetites have shrunk, according to a new study on shopping behaviors by Grocery Doppio, a data analytics firm.

nypost.com

 

[Alexx1401]

Cure for food inflation? If you get the drug for free, maybe. Otherwise stuffing your face will be much cheaper in the short run.

Weight-loss drugs like Ozempic and Wegovy are causing people to spend less at the grocery store: study

People taking weight-loss drugs are spending less on groceries because their appetites have shrunk, according to a new study on shopping behaviors by Grocery Doppio, a data analytics firm.

nypost.com

I had never thought of that but you may be onto something. Every time I am at the grocery store I see plenty of people who look like they eat enough daily to keep a small village in the 3d world alive all by themselves. I guess if a huge portion of these people actually ate only enough to keep going there would be a HUGE drop off in food buying.

 

[arakboss]

Hello $1 a gallon gas, shouldn't be too much longer.

https://www.cnbc.com/2024/07/30/us-crude-oil-falls-below-76-per-barrel-lowest-level-since-early-june.html

 

[nammac]

Hello $1 a gallon gas, shouldn't be too much longer.

https://www.cnbc.com/2024/07/30/us-crude-oil-falls-below-76-per-barrel-lowest-level-since-early-june.html

Heck, I'd be happy at $2/gallon as a stable and ongoing price…

 

[arakboss]

Heck, I'd be happy at $2/gallon as a stable and ongoing price…

Me too!

 

[Barefootdog]

Let the price fall. Starve the Russian war effort for cash...and the crazies in Iran.

Great time for US producers to flood the world market with crude.....Load up our strategic oil reserve.

Current administration too ideologically constipated to embrace the opportunity.
....better to continue to finance both sides of two shooting wars. Silly unimaginative people in charge.

$2.00/gallon diesel again would very very nice.....

 

[arakboss]

As marvelous as cheap gas would be, I doubt it's going to happen or won't last if does happen.

As for inflation fears in general, I believe that the fear of rapid inflation is the root cause of my aversion to saving money. If a person believes their money is going to be worth a lot less as time goes on, there is little motivation to save it.

If I am wrong and hyperinflation doesn't happen, I will live like all the rest who are living paycheck to paycheck.

 

[P7M13]

What are the payment plan terms.

Rumplestiltzkin plan : "how much for your daughter?!"

 

[arakboss]

I did my best to keep inflation high and growing but now the fed is winning. It's y'all's turn to spend like drunken sailors. Make Inflation High Again!

 

[64MercurysRule]

I did my best to keep inflation high and growing but now the fed is winning. It's y'all's turn to spend like drunken sailors. Make Inflation High Again!

What are ya selling so I can do my part ?

 

[arakboss]

What are ya selling so I can do my part ?

I made some successful trades today but no plans to sell any of my stuff right now.

 

[Alexx1401]

I did my best to keep inflation high and growing but now the fed is winning. It's y'all's turn to spend like drunken sailors. Make Inflation High Again!

Had to work my days off this week so next week Wife and I will be out working real hard to jack up prices.