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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.

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."

Consumer prices — or the consumer price index — rose 0.5% in February, the most since mid-2009, largely because of surging food and gasoline prices. Core inflation, which excludes volatile food and energy costs, rose a more modest 0.2%, though that still exceeded estimates.

The scenario hits Wal-Mart as it is trying to return to the low across-the-board prices it became famous for. Some prices rose as the company paid for costly store renovations.

"We're in a position to use scale to hold prices lower longer ... even in an inflationary environment," Simon says. "We will have the lowest prices in the market."

Major retailers such as Wal-Mart are the best positioned to mitigate some cost increases, Long says. Wal-Mart, for example, could have "access to any factory in any country around the globe" to mitigate the effect of inflation in the U.S., Long says.

Still, "it's certainly going to have an impact," Long says. "No retailer is going to be able to wish this new cost reality away. They're not going to be able to insulate the consumer 100%."

http://www.usatoday.com/money/industries/retail/2011-03-30-wal-mart-ceo-expects-inflation_N.htm
 

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More people, fewer resources, workers in developing countries wanting a better life and demanding higher wages. A correction is inevitable and probably overdue. I'm sure the conspiracy theorists will be pointing out villains all over the globe, but the economy is a world-wide entity with thousands of factors weighing on it's health. No one person or company can control it.
 

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Prices going up and pubs are cutting middle class wages !

Yep, that will fix it all !!!!!!! :crazy:
 

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Discussion Starter #4
More people, fewer resources, workers in developing countries wanting a better life and demanding higher wages. A correction is inevitable and probably overdue. I'm sure the conspiracy theorists will be pointing out villains all over the globe, but the economy is a world-wide entity with thousands of factors weighing on it's health. No one person or company can control it.
So.. all of this is coincidence?

Energy polciy written to harm American interests.
Foreign policy written to harm American interests.
Trade deals written to destroy American manufacturing.
Banking cartels that are too big to fail.
Endless wars for the last 80 years.
Constant flow of wealth out of this country, into the hands of our enemies.

Your tin foil hat makes my look weak... :laughing:

You been hitting the laughing gas Tex? :lookinup:
 

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Prices going up and pubs are cutting middle class wages !
Just a small elite group that has taken advantage of a system for many, many years. We are only asking that they pay their fair share... the same as we middle class working folk have always had to. ;)
 

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Just a small elite group that has taken advantage of a system for many, many years. We are only asking that they pay their fair share... the same as we middle class working folk have always had to. ;)
Just another minority group getting special rules..through bad legislation, by design.
 

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So.. all of this is coincidence?

Energy polciy written to harm American interests.
Foreign policy written to harm American interests.
Trade deals written to destroy American manufacturing.
Banking cartels that are too big to fail.
Endless wars for the last 80 years.
Constant flow of wealth out of this country, into the hands of our enemies.

Your tin foil hat makes my look weak... :laughing:

You been hitting the laughing gas Tex? :lookinup:
I think what you have written there falls under the category of life. Everyone has different interests, and the way those interests all come together has the combined effect of making the world economy. You can lose sleep over it, or you can enjoy life. :cheers:
 

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I think what you have written there falls under the category of life. Everyone has different interests, and the way those interests all come together has the combined effect of making the world economy. You can lose sleep over it, or you can enjoy life. :cheers:
:laughing: I would love to be that far out..
 

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:laughing: I would love to be that far out..
So you think beating your head against a wall and screaming about it is going to change anything? The problem with conspiracy theorists is that they always point to American bankers, politicians, CEO's as the cause of all the world's problems. Well in 1960, they had an outsized influence on the world. Not any more. We have absolutely NO control over the vast majority of bankers, world leaders, CEO's, etc, because most of the ones that have effects on our lives, like inflation are completly out of our sphere of influence. It's a new world. Reallignment is inevitable and out of our control. I wish it weren't true, but it is. :cheers:
 

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So you think beating your head against a wall and screaming about it is going to change anything? The problem with conspiracy theorists is that they always point to American bankers, politicians, CEO's as the cause of all the world's problems. Well in 1960, they had an outsized influence on the world. Not any more. We have absolutely NO control over the vast majority of bankers, world leaders, CEO's, etc, because most of the ones that have effects on our lives, like inflation are completly out of our sphere of influence. It's a new world. Reallignment is inevitable and out of our control. I wish it weren't true, but it is. :cheers:
:laughing: So why you posting in this thread?

"It's like rape, if it's inevitable, just lay back and enjoy it" - Clayton Williams

:buhbye:
 

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:laughing: So why you posting in this thread?

"It's like rape, if it's inevitable, just lay back and enjoy it" - Clayton Williams

:buhbye:
If Clayton was talking about the world economy, he was right. America used to be able to turn the Titanic (metaphorically speaking). But no longer. We still have a lot of influence, but not enough to control our own destiny. That will never change back in our favor again. Technology, Communication, Transportation has all spread the power around the world. Fact of life. It's such a new concept for Americans that we have trouble wrapping our brains around it. :thumbsup:
 

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The truth is that inflation is way better than deflation, which has been the fear of economists since the 2008 recession. With inflation everything that you bought over time, your home your car your business, gets cheaper and cheaper. With deflation just the opposite happens. If your home and car and business get moer expensive over time more people walk away from those loans. That makes deflation worse and a visious cycle developes. that is what screwed up Japans economy for the last 20 years, and it is a bitch. Imagine if the tv you buy today costs less tommorow. Would you buy that TV today or tommorow??? And as we all know tommorow never comes so sales die. That further hurts pricing so deflationary preasure gets stronger.

Don't get me wrong, out of control inflation is no good either, but inflation is way easier to control right now (with interest rates at 0%) than deflation was. Interest rates will also go up due to this inflation which will be good for people trying to live off of savings, like retired folks.

The artificialy low prices that China offered were bound to run out and now that they have destroyed our manufacturing ability look for a lot more of these sorts of price increases comming from China.
 

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The truth is that inflation is way better than deflation, which has been the fear of economists since the 2008 recession. With inflation everything that you bought over time, your home your car your business, gets cheaper and cheaper. With deflation just the opposite happens. If your home and car and business get moer expensive over time more people walk away from those loans. That makes deflation worse and a visious cycle developes. that is what screwed up Japans economy for the last 20 years, and it is a bitch. Imagine if the tv you buy today costs less tommorow. Would you buy that TV today or tommorow??? And as we all know tommorow never comes so sales die. That further hurts pricing so deflationary preasure gets stronger.

Don't get me wrong, out of control inflation is no good either, but inflation is way easier to control right now (with interest rates at 0%) than deflation was. Interest rates will also go up due to this inflation which will be good for people trying to live off of savings, like retired folks.

The artificialy low prices that China offered were bound to run out and now that they have destroyed our manufacturing ability look for a lot more of these sorts of price increases comming from China.
:agree:
 

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So.. all of this is coincidence?

Energy polciy written to harm American interests.
Foreign policy written to harm American interests.
Trade deals written to destroy American manufacturing.
Banking cartels that are too big to fail.
Endless wars for the last 80 years.
Constant flow of wealth out of this country, into the hands of our enemies.

Your tin foil hat makes my look weak... :laughing:

You been hitting the laughing gas Tex? :lookinup:

I think you and Tex are both right.
 

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Here's an illustration of the changes I was talking about. My Dad is 87. He grew up on a W. Texas farm with no electricity, no running water and an outhouse. When he was young, he could not have imagined the way the world would be when he was an old man. But technology changed his entire way of life in ways that are irreversible short of a nuclear holocaust. Our mindset over the last 50 years has been that our role in the world, our job market, our economic distribution would always be the same. But technology has changed the world again with satellite communication, the internet, cell phones and supertankers that can move almost any product around the world cheaply. These technologies make it feasible to do business and manufacture almost anything anywhere. 30 years ago, we could not have imagined these changes. We still have trouble admitting that we aren't the center of the economic universe any more. But the world has changed, just as it did for my Dad. Pointing fingers is a waste of time. What we have to do is figure out how to prosper in the new reality. :cheers:
 

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Here's an illustration of the changes I was talking about. My Dad is 87. He grew up on a W. Texas farm with no electricity, no running water and an outhouse. When he was young, he could not have imagined the way the world would be when he was an old man. But technology changed his entire way of life in ways that are irreversible short of a nuclear holocaust. Our mindset over the last 50 years has been that our role in the world, our job market, our economic distribution would always be the same. But technology has changed the world again with satellite communication, the internet, cell phones and supertankers that can move almost any product around the world cheaply. These technologies make it feasible to do business and manufacture almost anything anywhere. 30 years ago, we could not have imagined these changes. We still have trouble admitting that we aren't the center of the economic universe any more. But the world has changed, just as it did for my Dad. Pointing fingers is a waste of time. What we have to do is figure out how to prosper in the new reality. :cheers:
I agree with all you said but at the same time we can't act like suckers. Many countries have unfair trade rules and China refuses to let it's currency move according to normal economic principles. That puts us at a huge disadvantage, and shows in our huge trade imbalances. You cannot sit idly by and watch as our wealth leaves the country forever, or we will not have a country to protect. Rising wages in China are a natural reaction to the prosperity they are enjoying, but their currency should have also gone way up against the dollar long ago and that would have drasticaly changed the nature of the competetion. We need to start demanding that China and all our other trade partners act in a fair and equitable maner so mthat we do not fade into obscurity.
 

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I agree with all you said but at the same time we can't act like suckers. Many countries have unfair trade rules and China refuses to let it's currency move according to normal economic principles. That puts us at a huge disadvantage, and shows in our huge trade imbalances. You cannot sit idly by and watch as our wealth leaves the country forever, or we will not have a country to protect. Rising wages in China are a natural reaction to the prosperity they are enjoying, but their currency should have also gone way up against the dollar long ago and that would have drasticaly changed the nature of the competetion. We need to start demanding that China and all our other trade partners act in a fair and equitable maner so mthat we do not fade into obscurity.
No argument here. But exactly what leverage do we have to demand this fairness? The stick we carry is not nearly as big as it was 40 years ago. Not only are we indebted to China in a big way, we have to be willing to suffer the painful consequences of a trade/tariff war if we are determined to force the issue. The new world order simply does not allow the big bad U.S. to make demands and expect the rest of the world to fall in line. If we had not been funding our social benefits cafeteria with Chinese money for the last 3 decades, we would be in a more powerful bargaining position. But we essentially gave up that position in order to have goodies we really couldn't afford.
 

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No argument here. But exactly what leverage do we have to demand this fairness? The stick we carry is not nearly as big as it was 40 years ago. Not only are we indebted to China in a big way, we have to be willing to suffer the painful consequences of a trade/tariff war if we are determined to force the issue. The new world order simply does not allow the big bad U.S. to make demands and expect the rest of the world to fall in line. If we had not been funding our social benefits cafeteria with Chinese money for the last 3 decades, we would be in a more powerful bargaining position. But we essentially gave up that position in order to have goodies we really couldn't afford.
What we couldn't afford were the artificialy cheap prices that China offered. They sold to us long before they started lending us so much money. We gave them the money that they then lent back to us. Wall-mart was built on Chinese products, how old are they?

But I agree with you, we will never solve this problem because we have no will power. We cannot think of not getting cheap Chinese junk. Just like we cannot think of paying our fair share of taxes or living within our means.
 

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Doesn't take a CEO to realize this.
Been to the grocery, gas station, or paid a utility bill lately?

It's all bull-pelosi.
 
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