Wal-Mart CEO says "Serious Inflation" on its way.

True, its not, though the OP posted a second source 40 minutes before your comment, meaning you had two sources to work from for 40 minutes before you made a remark as to the channel, (which btw was not a brag just a statement of source). The 735i is not the source of the story, so it is simply bragging, whereas the news source is pertinent as it could lead someone to look up the story there.

 

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You cant say that I did not tell you so last month thats it's cming.
This is just the beginning and I hope that the one's in denial are well prepared.

 

I was thinking more WM is using it to justify to their customers the price hikes. I think current management cares more about stock price than servicing their customers at the lowest possible price. Just my opinion.

I know this wasn't the OP intention posting the story, so I apologize if its slightly OT, but I find the older I get the more I learn by studying WHO is saying something more than what they are saying. There are always reasons a company like Walmart says something like this when normally they are very closed mouth.

 

I agree medoraman. No matter what the CEOs reasons were though, costs to the consumers are still going to go up. The main reasons IMO are that there is a growing middle class in the world like in China and India that are eating up the supplies that were previously going to the USA and Europe. And of coarse, spending our way out of debt, and just spending in general when we don't have the money.

 

Rising middle class consumers is a great point. This is the main reason I think gold is going up, and if you put a gun to my head I would invest in gold rather than silver right now. I have been to India, middle east, SE Asia, and China. They simply DO NOT care much about silver. Everything is about Gold, and Gold only. My wife is Thai, and I had to buy about 5 ounces of it for our wedding ceremony, as do every middle class/upper class couple in these areas. No one said a WORD about silver anything, and if I suggested it would have been shot most likely. There are silversmiths there, but it is not viewed as a desirable metal like gold is. Ever wonder why the ATM in the middle east that opened recently dispenses gold and not silver? Silver would be easier, as its much more cost effective to buy. Those cultures that are growing in wealth simply have thousands of years desiring gold and only gold.

On another thread someone posted that if 20% of the world wanted silver they could only have 58 ounces. Problem is much of the world does not WANT silver for any reason. They would take 1/40th of an ounce of gold day in, day out before they would touch silver.

 

Well, guess I'm gonna have to stop eating and wearing clothes.........

 

Nahhhhh....... You can go to Goodwil and Save-Alotl!

 

Regarding food, it is going up because of corn and other inputs, but that is not all. Companies like General Mills are having record profits jacking up food prices. I was in Iowa last weekend and everyone and their brother is planting corn, taking land out of CRP, tilling up hillsides, tilling hay fields, etc. I think that if the rest of the world has a good wheat crop, we will literally be buried under corn this fall. Hopefully this will ease food price pressures, since it is scary how much food you eat is either corn derivatives or is the main input to the food. There is a good book, "The Omnivore's Dilemma", that details about 80% of the food in a typical grocery store contains corn.

 

I have noticed food prices going up at Wal-mart, so I've been buying foods elsewhere. Wal-mart's CEO can blame inflation, but a lot of the blame is on themselves and how they run their business.

 

A long time ago, reading some obscure tome, I came by a blurb that went like this...
"...In 1900 you could walk into any hardware store, throw down a $20.00 gold piece, and buy the finest Colt revolver made.
Today, you still can."
Although old, it still holds true.

 

I still have seen no reliable facts on increasing middle class ( how ever one wishes to classify such) in China, or even India. Yes there are releases from their central banks saying that inflation, especially food based , is going up, but that doesn't equate very well to increase in personal wealth, IMO.

Yes, I believe there will be some inflation. In fact, I would rather see some than the opposite. I do not believe there will be hyperinflation. I went through the 11%+ years, and the US survived. JMHO, and often in the minority



Jim

 

Here's another link about this which reveals the concern is not just among Walmart.
http://www.thebulliondesk.com/news/?id=30139&v=0&lang=en&cid=135282&type=1

'Bill Simon, Walmart CEO, told USA Today that American consumers could face "serious inflation" in the coming months for clothing, food and other products, while Hershey announced that it's increasing its wholesale prices by 9.7 percent because of rising costs for raw materials, packaging, fuel, utilities and transportation.'

I have heard similar stories from other companies as well about core prices rising, such as Campbell's Soup charging more due to steel and food price increases.. and what happened to Jack's dollar menu?

Whatever the reasons may be, and there are certainly many, inflation isn't on the horizon anymore.

 

Hmmm right after they are going to have (if I remember right)1.6 million women sue them for sex discrimination intresteing

 

the main reason is the increase in oil price. This would have the biggest effect. Trying to tie the U.S. economy to this is just being politically biased.

 

Here is some of China's plans for the upcoming year/s
http://www.chinadaily.com.cn/bizchina/2011-03/18/content_12193560.htm

 

Fortunately food and energy costs are not figured in the Official CPI, so I doubt that there will "officially" be inflation.

 

I have had many thoughts on doing the price conversions on silver back 50,60,80 years with today and find accurately just as you state, we are even earning the same amount of purchasing power for our time now as we did back than.

Some people say " a loaf of bread was 20 cents " well if you had those same two silver dimes and traded them for their current market value today of 2.73 each dime than you could go out and still buy your loaf of bread. Actually things have improved mostly. A Dime used to make a phone call.. hmmm I do not pay $2.73 every call I make these days!?!

 

Start another thread if you and gbroke wish to debate FOXNews. Not appropriate in this thread!
Steve

 

Well I have noticed it already in the smaller food packaging and it will obviously get worse because of oil prices as someone else already mentioned. We've been hit really hard by the recession and were spared inflation for awhile, now it's gonna get prevalent and in our face. It's certainly nothing new to us older gents but it's a pain in the @sx either way you look at it.

 

Most Americans are over weight(me included) and eat too much anyway. Maybe this will help us eat less and exercise more(walk to the store because we can't afford the gas). Always looking for the brighter side of things.

Kie