A key measurement of inflation, The Consumer Price Index, rose 2.5% in October from a year earlier. The inflation was linked to rising gas prices by the media, but there’s more to it than just the cost of fuel. Rising inflation is actually also likely tied to the deficit, rising interest rates, and the national debt.
According to a report by Market Watch, Americans paid more in October for gas, rent and used vehicles, triggering the biggest increase in consumer inflation in nine months. There was an increase in the cost of living over the past 12 months as well. That jumped to 2.5% from 2.3%. The rate of inflation is still below a six-year high of 2.9% set three months ago, however.
Even though the price of gasoline played a role on the rising inflation, the cost of rent, used cars and trucks, medical care, home furnishings, and car insurance also increased and all of these are major household expenses. The worst news, perhaps, is that after adjusting for inflation, hourly wages slipped 0.1% in October. Wages are up a mild 0.7% in the past year, according to CNBC.
This rise in inflation will likely keep the Federal Reserve on their current path of increasing interest rates as well. The United States’ central bank left interest rates unchanged last Thursday, but it is still expected to increase borrowing costs in December for a fourth time this year. In its statement after last week’s policy meeting, the Fed noted that annual inflation measures “remain near 2 percent.”
Even though most prices rose, prices for new motor vehicles dropped 0.2 percent last month and communications costs fell too. Prices for recreation and personal care products also decreased slightly. However, the minuscule decrease in vehicle prices won’t last long as the trade war with China is still in effect. Economists warn that the cost of a new car could jump up $7000 thanks to the tariffs imposed on Chinese imports by the Trump Administration.
https://www.shtfplan.com/headline-news/trade-war-tariffs-could-raise-the-cost-of-a-car-7000_09272018
“The media” is a synonym for “mouthy fools”… and everybody knows it. Why give them any print here Mac?
Gas prices are falling. The USA became energy self sufficient in October. Rig counts continue to climb every week.
Shale oil is profitable at about $30 bbl. 🙂
Tight oil is not profitable, as a whole, at thirty dollars a barrel. They may be able to pay the drilling costs and lifting costs at that price and maybe even service their debt, but they can never pay the principal or have positive cash flow or afford capex for future production. This is why rising interest rates are a death sentence for many frackers. The fracking boom was only possible through ZIRP Fed policies that made for easy borrowing terms.
It will soon be time to pay the piper.
“Tight oil is not profitable, as a whole, at thirty dollars a barrel. They may be able to pay the drilling costs and lifting costs at that price and maybe even service their debt, but they can never pay the principal or have positive cash flow or afford capex for future production.”
If you can pay your hard costs of drilling & lifting and service your debt then your company is not in danger of bankruptcy. WTI is currently at $56 so there is currently plenty of margin available for principal reduction and future production.
https://oilprice.com/
The Saudis want an oil price of around $75 bbl. Doesn’t look like they are going to get it without war in the Middle East. 🙁
Tariffs could raise the price of a vehicle ? $7,000.00.
Gee wiz, we might be forced to make them ourselves.
_
Who cares everything is getting smaller and more expensive, better learn to do things the way your elders did it, you know hunting, fishing, gardening, bartering successfully, canning, sewing, WALKING, etc. You know the hard things using your hands and brain for more than a hat rack. But then again most of the instant gratification liberal beta male and feministic witches who demands all free shit will die when the balloon pops, so I guess something good could come of it…
Since you know prices will rise and Christmas is coming, give practical handmade gifts and things like frozen meat, homemade wine, bread, pickles, rocketstoves,fire pistons, seeds, some practical beginner books like Square Foot Gardening, lessons, etc.
If broke and newly married, make a gift certificate book of several hour long massages to your sweetheart. She probably will appreciate far more than some present you wasted money on.
It is far more intelligent to give clothing money to teenagers in a special envelope, and go with them after Christmas to buy them at reduced prices.
If they like to read, go to a used book store and buy some gently used books there for significant savings.
It is far wiser to buy a used car that needs minimal work to make operational, and fix it with your teen so they appreciate and take care of it…from the onset, then to just buy a used car. Let them change the oil, swap out a tire and balance it the old school way, wax and polish it, change fuses, change wiper blades, etc. This greatly increases their confidence.
No wonder the west is dying. It’s the yawning chasm of fantasyland wishful thinking like this that waste people’s time.
Ever go to one of these 50-percent off, day after Christmas Sales? The shelves are empty. The selection is sparse. That special item you were looking for has been removed, only to be re-stocked after New Years — at a new and improved price.
Every buy a used book? Ever wonder what that mysterious, brown, sticky, substance was holding the pages together?
Ever buy a “junker?” Know why they call them junkers? Because they are not even good enough to be called “used.” Ever try to repair a “junker?” Those maintenance courses need to learn about basic car maintenance? Can’t take just one.
The people you see on TV going into junkyard to find that special clunker are experts.
Stop it with the La-La-Land drivel. You’re embarrassing yourself.
You are the one embarrasing yourself. Such practical wisdom is how to save money.
The only way the shelves are empty is when you live in urban environments.
The easiest way to buy inexpensive cars is when someone dies.Many of these have low miles as old widows own them and seldom went anywhere except to church and the grocery.
Stop applying your urban ideas to country folks.
https://www.allrecipes.com/recipes/17807/appetizers-and-snacks/tapas/
If you are broke but still want to create a romantic meal for your sweetheart, then “tapas” are little Spanish appetizers that just about everyone I have ever met enjoy. The are delicious and inexpensive, but care is made to make them create good presention.
Even guys who are not handy in the kitchen can make these, and some candles, firelight, and a little wine, and you can have an affordable memorable evening.
Save your money and do it yourself. Be creative and take turns with another couple babysitting or cooking.
When prices rise, you cannot afford restaurants.
your recipe sounded good, but I couldn’t get the link to load.
That’s odd as I just tried it and it works fine. From 2000 onwards, many tapas places opened serving it as stylish bar cuisine or as an inexpensive way to taste many little slightly larger than appetizer sized dishes. When guests arrive, the ladies may a big deal about how they look while the guys just feast.
Any recipe site or a cooking site or youtube will have lots of tapas recipes. They are called other names in Central America. Argentines have delicious food as well as they have the indigeneous recipes, Spanish, AND Italian due to their heritage.
Sangria is easily made inexpensive semisweet wine with fruit that goes well with it. A husband making a meal like that is going to get lucky. It’s impressive to a date as well. Plus as a prepper, you typically have access to lots of fresh produce based on season or may make our own marinated artichokes or red pepper or tapenades anyway.
Someone from Florida or Hawaii or often in Maine would have access to the seafood as well.
The Italians say, “Good food praises GOD.”
Strangely enough, many restaurants today actually serve you inferior commercial recipes as they are franchises. So you are eating a prepackaged meal that is small with substandard ingredients versus what you could make at home.