from Silver Doctors:
If one can’t see the hyperinflation all around, or if one believes the spoon fed reality post-Friday market-close, pre-Monday open, well, too baaaaaaahd…
We finally found some yeast.
If I recall correctly, our Costco had about 20 of them on the shelf?
They’re the big, vacuum sealed bags of yeast that have a content weight of 32 ounces (2 pounds), and the price was $4.99.
It’s the “Red Star” brand in particular, and we bought two.
Wifey’s a professionally-trained pastry chef, you know, and her savory breads are delicous!
But I digress.
For curosity’s sake, I did an eBay “sold listings” search, and to my surprise, check out what people are paying to purchase this yeast:
People are paying over $20 for the yeast I just paid less than five bucks for, and that’s real-time, true, authentic market pricing right there.
Sure, “retail arbitrage” will likely bring that price down somewhat, but still, paying over fifteen bucks is paying three times the price!
Here’s the thing: The price one pays depends on how close, or how far, one is to the actual supply chain, and the further away a person is from the supply chain, the more one has to pay, even here in the Good Old US of A!
In my specific example above, perhaps the person who paid almost $25 for two pounds of yeast owns a humble, simple bakery in a small town, and that person does not have practical, in-person access to a wholesale store, nor do recurring purchases justify some expensive account with a major food distributor like Sysco?
Or perhaps the person who paid over twenty four bucks for two pounds of yeast makes home-baked goods and sells them via word of mouth, or sells them on Craigslist, or sells them out of the back of a car in the old K-mart parking lot, or sells them wherever, and to make a couple bucks of much badly needed income, said self-made entrepreneur relies on purchasing yeast in bulk?
After all, there is a substantial price difference when buying those tiny packs of yeast in the grocery store, if and when you can find them, and buying a two pound bag of yeast in bulk.
Now, people accuse me of fear mongering, and that’s cool, for the haters are gonna hate, but when it comes to price inflation, it comes down to this: Essentials are surging in price, especially if you can’t find the items locally.
The problem with the hyperinflation is that while I argue it has indeed begun, and if you want to read some absurd examples of this, check out my series called the “Hyperinflation Watch“, people still see “stuff” in the stores, so they think that supply, overall, is fine.
That’s the thing about hyperinflation, and once it is no longer possible to get the essentials, anything of value will be next to go.
The question is, how fast, or slow, will this process be?
Spoiler Alert: Nobody knows!
That is to say, sure, there have been many hyperinflations over the last 100 years, and some of them have even been quite consequential, but nobody alive today has lived through a hyperinflation of the world reserve currency in a world only operating on the basis of unbacked, debt-based fiat currency dependent on exponential, unsustainable growth.
Shameless plug time: Rob Kirby and I discussed this and more late last week:
Now, I must admit, my mind is also blown with this whole Trump coronavirus infection thing, and what I’m most blown away by is how willingly the sheeple just gobble down every single thing they’re spoon fed these days.
Let me state it bluntly, and I’ll ask it in the form of a question: What in the heck is going on here?
I mean, Trump, a fat, old dude, had a coronavirus infection on Friday and was even taken to the hospital, post-market close, of course, yet he’s all fine and dandy before the markets even opened on Sunday evening?