1. Markets confirm our assumption after Alcoa was a slight disappointment that a brief correction gains momentum. Fukushima at Chernobyl level 7 now and I rather suspect it will be worse as Tokio is just 250 km away and the real facts are covered up. It will have a disastrous effect on food inflation medium and long term not mentioning the health implications which will exceed unfortunately Chernobyl by far is my hunch.
SPX is on its way to 1300 which is nothing big from the top like 3% but we are still in the top building process and the manipulators want the market to stay high as long as QE2 gives them the backstop. The critical aspect how long can the FED keep the Bond market from breaking down which is only a matter of time but within 3 months it should happen in a smoother mode. The real inflation which was triggered by the FED reaches consumers slowly but with rising momentum which will slow down consumption just through the rising energy prices alone budgets are cut down. This will have an huge impact on the coming earnings as the producer has to fight higher input prices anyway and will face lesser demand except for the ones supplying China with luxury goods.
Submitted by Tyler Durden on 04/11/2011 22:22 -0400
Back in October, Zero Hedge discussed a Costco offer for Shelf-Reliance THRIVE’s one year’s supply of dehydrated, freeze dried food, better known as “apocalypse rations.” Six months ago a one year’s supply of food for one person which included 5,011 total servings (84 #10 cans) could be purchased for $799.99 (the link for the offering is here, or rather was, here). A series of events made us encounter a comparable THRIVE offering at Costco. To our amazement in six months, the real price inflation in apocalypse rations, when factoring proportioning, is almost 50%! While the original set that was presented back in October is no longer available, what Costco does offer is a Shelf Reliance THRIVE 6 month supply supply for the price of $579.99: this represents the pinnacle of that ultimate in inflation disguising techniques: cutting the price by X while cutting the amount offered by Y>>>X. Indeed, to last a person a full year, one would need to be two of the 6 month supplies for a price of $579.99 or $1,159.98. And even that has to be indexed: the current set has 2,470 total servings, whereas the previous offer had 5,011, or 203% more. In other words, to index for the proper serving ratio the final price is actually $1,176.65. We can only hope that there are those who purchased this product when we first presented it (and don’t worry, with a 25 year shelf life, it lasts a looooong time) and saved themselves the 47% inflation in 6 months! And then there are non THRIVE product offerings, such as the one below for 2 people for 3 months for $999.99 (and includes its own 55 gallon water storage set), which represents price inflation well over 100% for those who need a little extra caloric kick (and, naturally, post-apocalypse social status with the neighbors). Something tells us in another 6 months, the Costco price today will be just as lamented as the price from 6 months ago currently is.