2008-06-09

"Recession with High Inflation"

A conversation with someone very important today revealed that our company is planning on the title comment. The second comment was that Dow's 20% increase on prices is doing everyone a favor.

Look the point is that everyone is holding their breathe hoping that this thing is going to turn around, and it's not. Dow finally has said enough is enough, US dollar value is down, steel is up, oil is up, copper is up, raw materials are up, and farming related products are up. So in the next two months you are going to see the ripple effects of these costs finally incorporated into everything you do and everything you buy. You can't expect that these prices are going to go down now, we've gone too far.

There is only one way to calm this economical climb now, stop buying gas, ride a bike, commute, and car pool. It's a pain but until we reduce the demand for the current oil supply loads, nothing will change. It's like we all are a bunch of smokers. Stay with me here, smokers are probably taxed more than any other group of people out there, and each time the tax goes up, they just shell out more money.

"How much for a pack, f@<* that's crap! Well Carl, see you tomorrow."

The green technology isn't quite here in the mainstream yet and will take I think a couple more years to mature nicely, so in the meantime, it's those normal simple things that will help. Things like buying a smaller car, moving closer to work, and not eating out are what will really make a difference.

So recession is here, inflation will be high, and enjoy the next two years. You heard it here 121st.

1 comment:

Grant said...

I think you're right, to an extent, although I'm not sure we'll see true recesionary numbers for quite a while.

The Fed needs to start jacking interest rates up, and NOW!

Higher interest rates will start lowering the cost of oil, and will add to the effect of decreased demand, which we're already seeing.

-Grant