Dollar’s Purchasing Power Gets Zapped. It’s Permanent, by Wolf Richter

The dollar’s purchasing power is shrinking and it’s not going to unshrink. From Wolf Richter at wolfstreet.com:

This combo of massive QE, repressed interest rates, huge government stimulus with borrowed money, and raging inflation is new in recent history.

This stuff is now going on everywhere, all the time, at all levels. Polaris, the Minnesota-based manufacturer that makes the Indian Chief motorcycles, a variety of snowmobiles, off-road vehicles, and other vehicles, raised its prices in May in response to higher input costs, and now, a couple of months later, it is again contemplating price increases.

Big consumer-products makers have been announcing price increases, and sometimes sequential price increases, since earlier this year. This includes Procter & Gamble, Coca-Cola, Kimberly-Clark, General Mills, Unilever, and many others.

Unilever, which makes products across beauty and personal care, home care, and food and drinks, announced price increases in April. Then a few days ago it said that if would accelerate and fatten those price increases because of still rising costs of ingredients, packaging materials, and transportation.

It said that “inflation has been higher than we anticipated.” And that has been the universal truth all year.

Automakers don’t announce price increases during the model year; manufacturer’s suggested retail prices, or MSRPs, are announced at the beginning of the model year. But what they’re doing is cutting back incentives, and people just pay a whole lot more for new vehicles. And profit margins have ballooned at automakers and at dealers. The largest auto dealer, AutoNation, disclosed monstrous historic per-new-vehicle gross profits.

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2 responses to “Dollar’s Purchasing Power Gets Zapped. It’s Permanent, by Wolf Richter

  1. Historic Printing Press Czar

    NWO dollars are postage stamp sized now, how will the “elites” build the global Soviet with monopoly money?

    Like

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