mdman Posted February 16, 2011 Share Posted February 16, 2011 The penny drops. From zerohedge: Surging inflation? Check. Negative GDP growth? Check. Increasing unemployment? Check. Dropping wages? Check. Looks like we have a stagflation bingo. Anyone in the UK MSM cottoned on yet? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 16, 2011 Share Posted February 16, 2011 We've had stagflatiion for probably about a decade if you take housing costs into account (and consequently business costs). Hence the reliance on debt to fund it all. Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 16, 2011 Share Posted February 16, 2011 The stock market is rising as profits at a lot of companies are being eaten alive. Total madness, they will bring the whle system crashing down even greater than before. Figures from the daily reckoning. DuPont & Co. - Fourth quarter sales rose 15%; net profits fell 15%. "DuPont forecast raw-material and freight costs to be some 4% to 5% higher this year than last, moderating from the 6% rise seen in 2010. [Executives] were confident they would be able to pass these on to end users. Ethane, chlorine, solvents, and pigments were seen as the key areas of cost pressure." Procter & Gamble - Sales rose 2%; net profits fell 25.5%. "P&G, which sells everything from Tide detergent to Olay skin-care products, said its commodities bill will cost $1 billion for the fiscal year that ends in June, more than double what it had expected." Colgate-Palmolive - "Colgate's profit fell [in the fourth quarter] 1%...squeezed by higher commodity costs and money paid to promote its products." 3M Company - Fourth quarter sales rose 10%; net profit fell 0.7%. "Margins declined under rising material costs and weakening sales in the company's health care and graphics businesses... 3M said it intends to recover higher material expenses through price increases, which include Scotch tape, Post-It notes, furnace filters, sand paper, automotive components, and thousands of other household and industrial items." Pepsico - [Pepsi-Cola, Frito-Lay, Quaker, Tropicana, Gatorade] - Full- year reported earnings per share increased 4%; fourth quarter earnings per share declined 6%. CEO Nooyi was pleased with the results, but acknowledged she is "mindful of three realities: (1) A weak consumer landscape given the poor macroeconomic picture, especially the high level of unemployment in key developed markets; (2) High levels of cost inflation for the coming year, driven by broad and pronounced commodity inflation; and, (3) A potentially difficult competitive pricing environment, particularly in beverages." Hugh Johnson, Pepsi's CFO, talked about cost inflation of 8% to 9.5%: "That type of inflation has a pretty strong impact." Goodyear - [tires, blimps] Net fourth quarter sales rose 14%; with a $177 million fourth quarter loss. "Raw material prices costs are likely to rise 25% to 30% in the first quarter of 2011 and rubber prices have risen 40% since October [2010]." Whirlpool - [Maytag, Kitchen Aid] Fourth quarter sales fell 1%; profits fell 61%. It is "seeking to offset cost increases for such items as steel, copper and plastics..." Electrolux - [refrigerators, washers] "Operating income in North America and Europe declined as the company was hit by higher costs for raw materials and lower sales prices." "The costs for our most important raw materials continue to increase," Electrolux CEO Mr. McLoughlin, said in a statement. "In addition to increased costs for steel, we also see considerable increases in resins (used in plastics) and base metals." Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 17, 2011 Share Posted February 17, 2011 http://www.uswitch.com/news/money/households-frozen-out-as-pay-fails-to-keep-up-with-inflation-991585/ Households frozen out as pay fails to keep up with inflation Wednesday, 16 February 2011 04:00PM by Maya Robert: editor@uswitch.com Households frozen out as pay fails to keep up with inflation News today that wages have hit a five month low has created a 'perfect storm' of increasing inflation, high unemployment and wage cuts. The wage growth rate in the UK fell from 2.1% to just 1.8% it was announced today, just a day after the Consumer Price Index annual inflation rates rose to 4% - an increase of 0.3% since December. Consumer Price Index (CPI) is a measure of the change in price in goods purchased per household. Today's figures reveal that the price of goods is rising at a faster rate than the average national wage, with living costs at a two year high. To add to the nation's financial woes, Mervin King, the Bank of England's governor, has written to George Osborne to warn that a rise in inflation would be dangerous for the country's financial stability Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted February 17, 2011 Share Posted February 17, 2011 Are you suggesting there is no recovery? Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 17, 2011 Share Posted February 17, 2011 (edited) The penny drops. From zerohedge: Anyone in the UK MSM cottoned on yet? Yep. We had an old thread on Stagflation, in 2009. Yep, Latin America style. Inflation caused by a fallen currency. (I've been saying that for months.) By the way, Mervyn said yesterday that surprisingly "commodities went up"! What a moron! It isn't commodities going "up"! It is your fecking currencies (£, $ and E) that are going down! I bet that when Mervyn takes a lift he thinks that it is the building that is going down... Old thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=133379&view=findpost&p=2312680 Edited February 17, 2011 by Tired of Waiting Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 17, 2011 Share Posted February 17, 2011 Yep. We had an old thread on Stagflation, in 2009. By the way, Mervyn said yesterday that surprisingly "commodities went up"! What a moron! It isn't commodities going "up"! It is your fecking currencies (£, $ and E) that are going down! I bet that when Mervyn takes a lift he thinks that it is the building that is going down... Old thread: http://www.housepricecrash.co.uk/forum/index.php?showtopic=133379&view=findpost&p=2312680 LOL, good job they don't get the gy who does the fan charts to service the lifts, press the second floor button and you'd end up out on the roof. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted February 17, 2011 Share Posted February 17, 2011 Are you suggesting there is no recovery? Quote Link to comment Share on other sites More sharing options...
uncle rogi Posted February 17, 2011 Share Posted February 17, 2011 Are you suggesting there is no recovery? indeed captain, with a bi-flationary collapse on long range sensors... Quote Link to comment Share on other sites More sharing options...
moonriver Posted February 17, 2011 Share Posted February 17, 2011 good job they don't get the gy who does the fan charts to service the lifts, press the second floor button and you'd end up out on the roof. that really made me LOL... Quote Link to comment Share on other sites More sharing options...
THE BALD MAN Posted February 17, 2011 Share Posted February 17, 2011 The penny drops. From zerohedge: Anyone in the UK MSM cottoned on yet? We have here...back to the seventies...bring out the flares..and the ford capri....the time when police were men and the word PC did not exist...speed cameras were on tomorrows world...bring it on Quote Link to comment Share on other sites More sharing options...
Tired of Waiting Posted February 17, 2011 Share Posted February 17, 2011 LOL, good job they don't get the gy who does the fan charts to service the lifts, press the second floor button and you'd end up out on the roof. Quote Link to comment Share on other sites More sharing options...
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