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What's Up With Inflation and All These Shortages?

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  • #46
    Originally posted by ua_guy View Post

    Stock up on what? What should be hoarded?

    Doesn't hoarding during a shortage beget more shortages, and more hoarding? I'm not sure hoarding makes any sense.
    Yes. Hoarding is never the answer. It just worsens the problem because it throws the supply and demand system more out of balance. Look at what happened with toilet paper last year. There was plenty of TP in existence. If people weren't out buying dozens and dozens of rolls at a time, the "shortage" wouldn't have been an issue. Once stores started limiting purchases, it suddenly became no problem to find TP.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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    • #47
      For a variety of reasons, 3 members of my family ended up needing to buy a new car in the past couple of months. All I can say is WOW! I had some thought of trying to wait it out, but from what I read it could take couple of years before the supply line issues have resolved. And, these inflated prices might be the new normal (for buying new cars).

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      • #48
        Originally posted by james.hendrickson View Post

        yep, I figure you got four options to deal with this stuff.


        1. Stock up. - To heck with it, it might be time to hoard.
        2. Buy I-Bonds or TIPS, so get investment products linked to inflation.
        3. Make friends - when times are hard, you want community
        4. Buy stock - its still giving the best returns.
        James, don't forget BTC (not ETFs, real BTC).
        Last edited by QuarterMillionMan; 10-23-2021, 04:57 PM.

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        • #49
          Thankful to live in a rural area of a flyover state.
          With exception of price increases on gas & groceries, we are simply not seeing all of this nonsense the metro areas are experiencing.

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          • #50
            Originally posted by Fishindude77 View Post
            Thankful to live in a rural area of a flyover state.
            With exception of price increases on gas & groceries, we are simply not seeing all of this nonsense the metro areas are experiencing.
            What kind of nonsense are the metro areas experiencing?

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            • #51
              Originally posted by ua_guy View Post

              What kind of nonsense are the metro areas experiencing?
              Shortages. I live in east bumble PA and I haven't had issues lately with any shortages of things. Year and a half ago when the world was coming to an end, or so we were told, shelves were even bare here.

              Maybe people should rethink living in high population cities. We're no where near SHTF and larger cities were a disaster. Imagine if we had a real problem on our hands? Have fun escaping your concrete jungle.

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              • #52
                Originally posted by rennigade View Post

                Shortages. I live in east bumble PA and I haven't had issues lately with any shortages of things. Year and a half ago when the world was coming to an end, or so we were told, shelves were even bare here.

                Maybe people should rethink living in high population cities. We're no where near SHTF and larger cities were a disaster. Imagine if we had a real problem on our hands? Have fun escaping your concrete jungle.
                Flyover arrogance. The majority of the US lives in higher density areas, in and around major cities, and they do it for their jobs--to pay their bills and make the economy go around, not because they like high priced cities or a lot of concrete buildings. Higher density and competition for resources are what MOST of America is dealing with in light of supply chain issues.

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                • #53
                  Originally posted by rennigade View Post

                  Shortages. I live in east bumble PA and I haven't had issues lately with any shortages of things. Year and a half ago when the world was coming to an end, or so we were told, shelves were even bare here.

                  Maybe people should rethink living in high population cities. We're no where near SHTF and larger cities were a disaster. Imagine if we had a real problem on our hands? Have fun escaping your concrete jungle.
                  Maybe but I think that it's more likely to worse. Instead you'll have the big cities getting bigger with more spread. It appears that people don't necessarily want to live middle of nowhere but living 2 hours outside of a major city and commuting 2x a week for hybrid remote work seems very feasible. So they can have slower life, cheaper homes, yet be able to still have their job and salary.

                  This divide of city versus rural already is happening in every state. It seems like red and blue states are a misnomer. It's red states with blue cities.
                  LivingAlmostLarge Blog

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                  • #54
                    Originally posted by LivingAlmostLarge View Post

                    Maybe but I think that it's more likely to worse. Instead you'll have the big cities getting bigger with more spread. It appears that people don't necessarily want to live middle of nowhere but living 2 hours outside of a major city and commuting 2x a week for hybrid remote work seems very feasible. So they can have slower life, cheaper homes, yet be able to still have their job and salary.

                    This divide of city versus rural already is happening in every state. It seems like red and blue states are a misnomer. It's red states with blue cities.
                    This is probably accurate. With remote work people are going to spread out. The landscape will change for sure.

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                    • #55
                      Originally posted by ua_guy View Post

                      Flyover arrogance. The majority of the US lives in higher density areas, in and around major cities, and they do it for their jobs--to pay their bills and make the economy go around, not because they like high priced cities or a lot of concrete buildings. Higher density and competition for resources are what MOST of America is dealing with in light of supply chain issues.
                      I understand this. But people are going to or should re think living in major urban areas. Money isn't everything. We already know it doesn't buy happiness. Who wants to live in a 600 sq apartment surrounded by hundreds of strangers in the same building all earning $100k+? Is that what life is about?

                      I felt so fortunate that we escaped the rat race of DC and moved to the country. What a soul sucking place.

                      Edit:. Some people actually like living in cities. This doesn't apply to those folks.

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                      • #56
                        Originally posted by rennigade View Post

                        I understand this. But people are going to or should re think living in major urban areas. Money isn't everything. We already know it doesn't buy happiness. Who wants to live in a 600 sq apartment surrounded by hundreds of strangers in the same building all earning $100k+? Is that what life is about?

                        I felt so fortunate that we escaped the rat race of DC and moved to the country. What a soul sucking place.

                        Edit:. Some people actually like living in cities. This doesn't apply to those folks.
                        I'm not a city guy either, but I'm still confused about how this argument has much to do with nationwide supply chain issues. It would make sense to me that someone could actually help the problem by not hoarding, or maybe even being flexible in terms of what foods they buy. If the price of soda is going up and that drives someone to panic, well, maybe it's time to shift the thirst to other beverage choices temporarily while things settle down.

                        I also fail to see any obligation (read: You say people should rethink living in major urban areas). For what? So they can all move to rural areas where we live, and be my new neighbor? No thanks, stay put

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                        • #57
                          Originally posted by ua_guy View Post

                          I'm not a city guy either, but I'm still confused about how this argument has much to do with nationwide supply chain issues. It would make sense to me that someone could actually help the problem by not hoarding, or maybe even being flexible in terms of what foods they buy. If the price of soda is going up and that drives someone to panic, well, maybe it's time to shift the thirst to other beverage choices temporarily while things settle down.

                          I also fail to see any obligation (read: You say people should rethink living in major urban areas). For what? So they can all move to rural areas where we live, and be my new neighbor? No thanks, stay put
                          this above. Stop hoarding that is causing some of the problem.
                          LivingAlmostLarge Blog

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                          • #58
                            Originally posted by LivingAlmostLarge View Post
                            this above. Stop hoarding that is causing some of the problem.
                            I mentioned in the decluttering thread that I was working my way through the house organizing & cleaning stuff out.... If anyone discovers a TP shortage, please give me a shipping address & accept my apologies. Between 3 closets in my house, I've found over 6 dozen rolls of TP in at least 3 main varieties. No idea how, when, why, or by whom ...... But yikes.....

                            One of them is still in the from-Costco packaging, so I'm tempted to try returning it... But that's the variety that I prefer! Lol
                            "Praestantia per minutus" ... "Acta non verba"

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                            • #59
                              Inflation we are experiencing is made up of two components. First is the reduced supply of goods. Second is the excess if dollar bills. The first will presumably resolve itself with time, although it can be a year or even more. The second is not going anywhere since the money has already been printed. So I am predicting that increases due to shortages of goods or labor - gas prices, restaurant prices, car prices, etc - will ease, while increases due to excess $$$ - such as groceries and consumer goods - will stay.

                              How do you hedge against inflation? First - don't pay off your mortgage faster because your mortgage is depreciating with inflation. Second, buy assets that appreciate with inflation - real estate, ibonds, stocks, etc.

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                              • #60
                                I observed a woman in the grocery store last week, and it struck me as very telling of the situation.

                                She's white, heavy set, cornrows in her hair,and three kids (I think she may have been working on #4 at the time also). She walked into the chip isle as I was walking out. And in one of the most ghetto accents I've heard, she stated: "Since when are Doritos $5 a bag!"

                                People across all classes are starting to notice.

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