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Wholesale prices soared last year...

techs

Lifer
Sep 26, 2000
28,563
3
0
http://news.yahoo.com/s/ap/200...on_bi_go_ec_fi/economy

Wholesale inflation last year shot up by the largest amount in 26 years while retailers suffered their worst December shopping season in five years as mounting economic woes caused consumers to put away their wallets.

The Labor Department reported that wholesale inflation was up 6.3 percent for all of 2007, reflecting a huge increase for the year in various types of energy costs ranging from gasoline to home heating oil.

Meanwhile, retail sales fell by 0.4 percent in December, the worst showing in six months, the Commerce Department reported. Consumer confidence has plunged, reflecting the worsening housing slump and a lingering credit crisis.

In a third report, the government said that inventories held by businesses rose by 0.4 percent in November, reflecting big increases in stockpiles held by manufacturers and wholesalers. The 0.4 percent rise matched a similar increase in September and was in line with expectations. Inventories had risen by a much smaller 0.1 percent in October.

The poor showing for retail sales and a disappointing quarterly report from Citigroup Inc. renewed recession worries on Wall Street. In early morning trading, the Dow Jones industrial average was down more than 100 points.

"Consumers held tight to their wallets in December, raising questions about whether household spending will be enough to keep us out of a recession," said Joel Naroff, chief economist at Naroff Economic Advisors.




Hey, I thought massive tax cuts for the rich was going to give us a great economy!
I guess the UTTER LIES OF THE BUSHIES AND THEIR TAX CUTS ARE NOW REVEALED.
WITHOUT THE MASSIVE GOVERNMENT DEFICIT SPENDING THE BUSHIES ECONOMIC PLAN WAS A COMPLETE AND UTTER DISASTER.
 

bamacre

Lifer
Jul 1, 2004
21,030
1
61
I find it quite hypocritical that you post this and bash Bush's deficit spending while your sig calls for UHC.
 

krunt

Member
Jan 11, 2008
98
1
0
Actually we have been undergoing massive deficit spending, around $400 billion a year for 5 years. And yes, the rich did get a good deal on those tax cuts. All the money we saved went into I-bonds and TIPS and made a nice return.
But don't worry, if this keeps up the US can start exporting goods again, jobs will come back to the states. After all, when the dollar gets low enough it will be cheaper to pay your employees in dollars then pesos. Hey, maybe Ford will move back here from Mexico and then we can export our cars to Mexico. The exchange rate might favor it.
 

krunt

Member
Jan 11, 2008
98
1
0
Originally posted by: bamacre
I find it quite hypocritical that you post this and bash Bush's deficit spending while your sig calls for UHC.
One has little to do with another.
UHC is something money can be spent on. Deficit spending (and massive borrowing) is what he is bashing. You can fund UHC and other programs at the same time, just have to cut spending in other areas or tax more or a combination of both.

Im just wondering if the average $600 a year in bush's 01' tax cuts are helping the average families on this board? Not like the US needs that $1.3 trillion. Personally I am using my extra tax cut savings this year to upgrade my computer.
 

KB

Diamond Member
Nov 8, 1999
5,171
226
106
I don't like GWB, but he and the bushies aren't to blame for this.

You say it yourself, wholesale inflation is higher due to raising prices in gasoline/oil prices caused by rising demand from China and India. This causes people to have less spending money for other goods so sales of those goods decrease and people are laid off. Economy 102 FTW.
 

TheSlamma

Diamond Member
Sep 6, 2005
7,625
4
81
Classic Techs... posts about a problem and has absolutly zero solutions for it just bitching and moaning. :roll:
 

bamacre

Lifer
Jul 1, 2004
21,030
1
61
Originally posted by: krunt
Originally posted by: bamacre
I find it quite hypocritical that you post this and bash Bush's deficit spending while your sig calls for UHC.
One has little to do with another.
UHC is something money can be spent on. Deficit spending (and massive borrowing) is what he is bashing. You can fund UHC and other programs at the same time, just have to cut spending in other areas or tax more or a combination of both.

Im just wondering if the average $600 a year in bush's 01' tax cuts are helping the average families on this board? Not like the US needs that $1.3 trillion. Personally I am using my extra tax cut savings this year to upgrade my computer.
If you think a UHC plan won't cause an increase in our deficit, you're delusional.

What do you think is causing all the inflation?

The dollar is falling, we are already going broke, and our deficit and future entitlements are skyrocketing.

UHC would only make things worse.
 

Firebot

Golden Member
Jul 10, 2005
1,476
1
0
It could NEVER have anything to do with the American dollar plummeting on failed Bush economic policies. NEVER!

In other news, the Canadian company I work at just dropped prices by 15% due to wholesale deflation.
 

techs

Lifer
Sep 26, 2000
28,563
3
0
Originally posted by: TheSlamma
Classic Techs... posts about a problem and has absolutly zero solutions for it just bitching and moaning. :roll:

Time and time again I have posted the solution:

Repeal the tax cut for the top 3 percent.
Reapportion the remaining more towards the lower middle class.
Enforce the trade laws in place.
Reduce spending on corporate welfare.
Stop illegal immigrant employment.
End donor state subsidies to recipient states.

Problem solved.
 

krunt

Member
Jan 11, 2008
98
1
0
Originally posted by: bamacre
If you think a UHC plan won't cause an increase in our deficit, you're delusional.

What do you think is causing all the inflation?

The dollar is falling, we are already going broke, and our deficit and future entitlements are skyrocketing.

UHC would only make things worse.
I believe i said:
Originally posted by: krunt

You can fund UHC and other programs at the same time, just have to cut spending in other areas or tax more or a combination of both.
I am not saying that a UHC is a good idea or a bad idea. I was just saying you can fund it without increased deficit spending. you tax, you cut spending in other areas, or you do both.

Either tax and spend or don't spend at all. there is econ 101 ftw!

 

rudder

Lifer
Nov 9, 2000
19,434
84
91
Originally posted by: KB
I don't like GWB, but he and the bushies aren't to blame for this.

You say it yourself, wholesale inflation is higher due to raising prices in gasoline/oil prices caused by rising demand from China and India. This causes people to have less spending money for other goods so sales of those goods decrease and people are laid off. Economy 102 FTW.
To top it off... people have been living high on the hog thanks to an abundance of credit. Maybe now people have realized how bad their situation is and cut back credit purchases finally.
 

Engineer

Elite Member
Oct 9, 1999
39,234
699
126
Originally posted by: krunt
Actually we have been undergoing massive deficit spending, around $400 billion a year for 5 years. And yes, the rich did get a good deal on those tax cuts. All the money we saved went into I-bonds and TIPS and made a nice return.
But don't worry, if this keeps up the US can start exporting goods again, jobs will come back to the states. After all, when the dollar gets low enough it will be cheaper to pay your employees in dollars then pesos. Hey, maybe Ford will move back here from Mexico and then we can export our cars to Mexico. The exchange rate might favor it.

Actually, the Mexican peso has fallen as far (or more) than the dollar and China pegs it's currency to ours, so that doesn't help much as far as Mexico or China manufacturing is concerned.
 

krunt

Member
Jan 11, 2008
98
1
0
Originally posted by: Engineer
Actually, the Mexican peso has fallen as far (or more) than the dollar and China pegs it's currency to ours, so that doesn't help much as far as Mexico or China manufacturing is concerned.
Sorry, my sarcasm button must be broke. Ill have to fix that.
 

piasabird

Lifer
Feb 6, 2002
17,168
60
91
This is not even news to most people. All you have to do is go to store and try to buy something to see that prices are up everywhere. However, what I do not understand is everyone is saying the economy is doing fine. It is the biggest lie on earth. Where is the Media on this?

The stupidest move is using corn to make gasoline. Now everything from Eggs to soda is more expensive. Then the Government Accounting Office tells you they dont count food in the calculations for inflation. That is a flawed way of doing business if I ever saw it.

Half of Mexico's economy is mailed back from the USA.
 

Slew Foot

Lifer
Sep 22, 2005
12,381
94
86
Originally posted by: blackangst1
Originally posted by: krunt
There is a solution, but not one anyone likes.
Yep. Vote Democrat.
Ron Paul probably has better economic policies than any Democrat. Not many people like that solution either.

 

Vic

Elite Member
Jun 12, 2001
48,411
9,264
126
Hard to complain about the retailers' plight. Great sales this Christmas. I swear I almost felt like I was shoplifting at Macy's... they were giving it away.
The pump and the grocery store are up and that sucks. But you can help the former by driving less, and the latter by clipping coupons.
Meh, I owe it all to RossMAN.
 

BoomerD

No Lifer
Feb 26, 2006
57,087
5,429
126
Originally posted by: techs
Originally posted by: TheSlamma
Classic Techs... posts about a problem and has absolutly zero solutions for it just bitching and moaning. :roll:

Time and time again I have posted the solution:

Repeal the tax cut for the top 3 percent.
Reapportion the remaining more towards the lower middle class.
Enforce the trade laws in place.
Reduce spending on corporate welfare.
Stop illegal immigrant employment.
End donor state subsidies to recipient states.

Problem solved.
It's just your liberal hippie way of looking at things Techs...the economy is in FINE shape and the country is doing well, the dollar is healthy, Big Oil is making money, Halliburton is making money...


(btw, put new batteries in the sarcasm meter if needed)


GWB will go down as the worst president in history. He has managed to take a (projected) budget surplus under Clinton and turn it into the worst bout of deficit spending in US history.
Never before have we had a president who spent like a drunken sailor on leave, but instead of raising taxes to pay for it, just keeps borrowing and borrowing...one of these days, someone is going to have to pay those bills...and it ain't gonna be pretty when they come due...
Bush and Cheney met with top energy officials in secret to discuss and formulate the country's energy plan...Funny enough, that year brought us the Kahleeforneeya electrical shortage/ala Enron, the following year, we saw the first of record high gas/oil prices, PLUS, nearly everything else had to go up in price because transportation costs kept climbing. Seems more like the energy plan was more of a plan to fleece America...
 

Vic

Elite Member
Jun 12, 2001
48,411
9,264
126
GWB can't go down as the worst President in history. But only because Buchanan and Coolidge came before him. :p
 

Engineer

Elite Member
Oct 9, 1999
39,234
699
126
Originally posted by: piasabird
I'll put this right next to the Christmas Bonus I didn't get.
And I'll put it beside the 3% raise that I received on December 19th that was cut to 2% (Corporate wide) on the 21st (nice Christmas gift eh?) and the 15% rise in insurance costs too! :D
 
Oct 30, 2004
11,429
20
81
Originally posted by: Vic
GWB can't go down as the worst President in history. But only because Buchanan and Coolidge came before him. :p
The President who will go down in history as having presided over and facilitated (through negligence and neglect) the key factors in the transformation of the United States from a middle class haven into an impoverished third world economy deserves the title of "The Worst President in American History."

Did he do anything about illegal immigration or mass immigration? No.

Did he try to end foreign work visas? No.

Did he try to end foreign outsourcing? No.

Did he try to eliminate the nation's trade deficit? No.

Did he try to do anything about the nation's (or the world's) population explosion? No.

 

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