These statements about transitory inflation are bs, it is INFLATION!
- Thread starter wildchild
- Start date
Supply chains have not resolved, we are entering a common slow time of the year for imports from Asia. the supply chain probelms exist not because the supply chain does not work, but because the supply chain was overrun so fast with so much demand and it happened with COVID interruptions as well.
When this small respite is done with by late June, the surge in demand for imports from Asia will spike again and the deluge will continue and so will delays, increases in freight rates and trucking rates, random shortages.
Inflation might slow that demand surge a bit we can hope compared to last season but it is hard to predict. Rate hikes are trying to stop an oil tanker coasting at full speed with one tug boat. You can slow it down but it takes a while before it starts working.
I have to ask because you seem to be up on all of this, do you think we are going to hit a point where consumer behavior changes faster than this delay in shipping?
For example will consumers will forego expensive televisions in favor of cheaper versions due to inflationary effects, while orders of more expensive TVs are still in production or shipping?
If I was Costco or some large retailer like that I know I would be terrified right now of consumers changing preferences with supply so in doubt.
I think right now it is difficult because we are kind of in the slow part of the year with respect to consumer demand for imports. The real test is back to school and holiday shopping season and logistics for that begins in June/July.
Inflation has lifted the price of everything......including wages. That means most people are paying more from a higher salary..most.
So we are seeing a pause before the storm BUT based on last year's experience retailers know how to handle it better. Costco, Amazon and Target are chartering vessels to bring in inventory and manufacturers are working to stock up on parts/supplies. Demand might not be as strong as last year due to pricing but it could stillbe strong enough to keep shipping issues around and maybe not any futher strong inflation but prices will not drop so easily.
Costco h as to make sure they are supplied for the seasons so they will still bring in product and perhaps start earlier. They have already taken m easures to minimize logistics cost a bit.
I woudl say we will not really know u ntil we get into June and China's lockdowns subside. The lockdowns slow down exports which in turn opens more shipping space. If China opens freely and summer demand hits then while maybe not as bad as last year it will keep the supply chain fully overworked for some time.
We ma have seen the worst of the inflation increases though we will still have it.
Fox News calls in the most trusted expert ever to discuss inflation.
“Listen to me now, believe me later on.”
https://finance.yahoo.com/news/wall...HMQYEdK3ilPVDivE41SkhQKcXgwjOPiQU0JHPEGxv15Qv
Nope. I don't deserve that clown. Those who voted for him do.
It reminds me of the old joke:
The Lone Ranger and Tonto are being pursued by the natives who are trying to kill them.
Then they come to a dead-end in the canyon and realize that they are trapped.
So, the Lone Ranger turns and looks at Tonto and says: "We are screwed now and are going to die."
Whereupon, Tonto says: "What do you mean "WE" white man?
Yeh, don't include me in that "we." I deserve better for not voting to send America down the toilet.
You all just don’t speak Biden. The truth is that he is right though.