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View Full Version : Wal-Mart US CEO To America: "Prepare For Serious Inflation"



megimoo
04-01-2011, 12:32 AM
To those who think that buying food in the corner deli is becoming a luxury, we have five words: you ain't seen nuthin' yet. U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday talking to USA Today.

And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding reexporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us.

The world's largest retailer is working with suppliers to minimize the effect of cost increases and believes its low-cost business model will position it better than its competitors.

Still, inflation is "going to be serious," Wal-Mart U.S. CEO Bill Simon said during a meeting with USA TODAY's editorial board. "We're seeing cost increases starting to come through at a pretty rapid rate."

Along with steep increases in raw material costs, John Long, a retail strategist at Kurt Salmon, says labor costs in China and fuel costs for transportation are weighing heavily on retailers. He predicts prices will start increasing at all retailers in June.

"Every single retailer has and is paying more for the items they sell, and retailers will be passing some of these costs along," Long says. "Except for fuel costs, U.S. consumers haven't seen much in the way of inflation for almost a decade, so a broad-based increase in prices will be unprecedented in recent memory."


http://www.zerohedge.com/article/wal-mart-ceo-america-prepare-serious-inflation

Wei Wu Wei
04-01-2011, 10:14 AM
class war

djones520
04-01-2011, 10:20 AM
Brought on by the US Government. The Fed is liquidating it's assets to give short term boosts to the stock market, which is going to lead to massive long term inflation.

That's at least what I heard on the news while waiting for some teeth drillin yesterday.

Arroyo_Doble
04-01-2011, 10:26 AM
Hmmm.

Perhaps you should cultivate some American manufacturing, then.

megimoo
04-01-2011, 10:56 AM
Hmmm.

Perhaps you should cultivate some American manufacturing, then.We import very little of our food with the exception of luxury goods.

Gingersnap
04-01-2011, 11:19 AM
We import very little of our food with the exception of luxury goods.

We import a lot of food. Cheap beef from South America and all those delightful year round veggies from Mexico and places south. Seafood and fruit are also important. We're on top of the wheat/soy/corn thing though which is something, I guess.

Starbuck
04-01-2011, 11:22 AM
(GULP...:confused:

My wife has been pointing out to me for some months that this is already happening. {Now, before some of you feminists get after me, you should be informed that although I do not do the shopping, I always clean the kitchen and do the floors.....and lots of other stuff, too:)}

I will assume that this round of inflation will include houses. For now, used houses sell at a 40% to their new counterparts. That's just gotta change as the supply of lived-in houses dries up.

djones520
04-01-2011, 11:24 AM
We import a lot of food. Cheap beef from South America and all those delightful year round veggies from Mexico and places south. Seafood and fruit are also important. We're on top of the wheat/soy/corn thing though which is something, I guess.

According to the USDA our largest import is Fruits at 10,680,800 tons. The next would be live farm animals at 8,935,000 tons. Vegetables are over 7 million tons, and cereals and bakery items are over 8 million tons.
The only item that has seen a significant decrease in the last decade was already slaughtered meats, by 300,000 tons.

Arroyo_Doble
04-01-2011, 11:26 AM
According to the USDA our largest import is Fruits at 10,680,800 tons. The next would be live farm animals at 8,935,000 tons. Vegetables are over 7 million tons, and cereals and bakery items are over 8 million tons.
The only item that has seen a significant decrease in the last decade was already slaughtered meats, by 300,000 tons.

Live farm animals are down from their peak in 2007 of 13362 metric tons.

djones520
04-01-2011, 11:27 AM
Live farm animals are down from their peak in 2007 of 13362 metric tons.

True, but still 2 million tons higher then they were a decade ago.

Novaheart
04-01-2011, 11:29 AM
What would happen if America, nearly all of America, signed on to a national austerity movement?

What if it became fashionable, like Hollywood fashionable, to only domestic foods, to make clothing last longer, to stop buying cheap plastic crap and electronics?

I don't know about where you guys live, but around here a person of average to small size (big people don't toss out clothes that still fit) can dress comfortably, formally, and even somewhat stylishly (for Florida) for next to nothing. There is no reason to ever buy something new for a baby or even hospital equipment for old people. Between yard sales and the thrift stores, we are awash in slightly used stuff.

When I was a kid, I never saw stuff like this. The crib I slept in was probably fifty or a hundred years old and had belonged to some second cousin or neighbor (same thing). My Christmas toys were new, but they got used until they decomposed. Children inherited toys from siblings and neighbors.

We simply waste too much stuff in this country. That's not anti-American, it's the truth and it's anti-American to deny that we're not behaving like the people who built this nation and whom we claim to admire. My ancestors were not frivolous people. I grew up being told, "Make it do or do without."

I also grew up eating summer vegetables in summer and winter food in winter.