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Wal-Mart Says “Serious” Inflation Is Coming

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Thank you Ben Bernanke for all the money printing.  Thanks to a massive injection of cash into the financial system by the Federal Reserve and other central banks, the price of almost every major commodity has skyrocketed over the past six months.  Now those price increases are starting to filter down to the retail level.  During a recent meeting with USA TODAY’s editorial board, Wal-Mart CEO Bill Simon said that rising inflation in the United States is “going to be serious” and that Wal-Mart is “seeing cost increases starting to come through at a pretty rapid rate.”  For many years Wal-Mart has been famous for their “low prices”, so for the head of Wal-Mart to publicly warn that much higher prices are coming is more than a little alarming.  There are millions of American families that are already drowning in debt, that can barely pay their mortgages and that are struggling to put food on the table for their families.  So what is going to happen to the U.S. economy when prices start rising substantially at places such as Wal-Mart?

But Wal-Mart is not the only major corporation that says that inflation is coming.  Hershey has just announced price increases of about 10 percent on their entire line of products.

So if you like chocolate you better start stocking up now.

Cocoa production is being seriously threatened by the political unrest in Africa right now.  The recent chaos in the Ivory Coast is certainly not good news for Hershey, but the truth is that all of the long-term trends indicate that prices for commodities such as cocoa, coffee and sugar are going to move up anyway.

In fact, Aaron Smith, the managing director of Superfund Financial, believes that coffee, sugar and cocoa will all be five to ten times more expensive by 2014 than they are today.

So if you are addicted to coffee or to sugar you might want to start making your plans accordingly.

But the truth is that inflation is not limited to just a few commodities.  Virtually every major agricultural commodity has soared in price over the past 6 months to a year.

So what is causing all of this?

Well, there are several factors which are major contributors.

First of all, overall global demand continues to increase.  The population of the world continues to grow, and as the economies of nations such as China and India develop, millions more people want to enjoy luxury items such as chocolate and coffee just like Americans do.

Secondly, all over the world central banks have been recklessly printing money in an attempt to stimulate their economies, but this is also going to end up causing tremendous inflation.

So how does that work?

Well, it is actually very simple.

For example, in the United States when there are more dollars chasing the same number of goods and services, what is going to happen?

Prices are going to rise of course.

And we are seeing this happen all over the world right now.

Thirdly, as the price of oil continues to rise, it is going to increase the cost of everything else.  The era of massive amounts of cheap food being transported around the world using massive quantities of cheap oil is rapidly coming to an end.

The following chart if from the Federal Reserve.  It shows that the price of oil is rapidly moving back to the level it was at prior to the financial crisis of 2008.  In fact, this chart is slightly out of date.  At last check, the price of oil was over $107 a barrel.  So what is it going to mean for our economy if we soon surpass the record that was set back in 2008?….

Fourthly, global instability is also going to cause prices to continue to rise.  Over the past year we have had really bizarre weather all over the globe, we have seen revolutions erupt all over Africa and the Middle East and the third largest economy in the world (Japan) just experienced the worst disaster that they have been through since World War 2 ended.

When things are unstable, economies don’t work as efficiently.  That means that less goods and services are produced.

But when there are less goods and services being chased by an increasing amount of money that tends to push prices up.

The truth is that inflation is here, and if the CEO of Wal-Mart is right, it is not going to go away any time soon.

In fact, many believe that the world is on the verge of another major economic crisis.

If you stop and think about it, every major region of the world is dealing with very serious problems right now.

Right now, the European debt crisis is worse than it ever has been before.  Did you notice that Standard & Poor’s just downgraded Portugal’s debt for the second time in a week?  Now Portuguese debt is rated BBB-, which is only one level above junk status.

That is a very alarming sign.

Asia is dealing with the Japanese crisis, nearly all of the countries in the Middle East are dealing with protests or full-blown revolutions, Africa is dealing with the war in Libya and quite a few revolutions of their own, and the U.S. is still deeply struggling with a whole host of economic problems.

Most Americans don’t realize just how precarious things are at the moment for the global economy.  The financial crash of 2008 did a lot of lasting damage, and the next wave of the financial crisis could potentially be even worse.  Unfortunately, the global financial system is more vulnerable than ever right now.

So what are the Federal Reserve and other central banks going to do the next time a major financial crisis happens?

They are going to print even larger quantities of money and they are going to give even larger bailouts to their friends of course.

The dollars that you have today are never going to be more valuable than they are right now.  Don’t wait too long to use them.  If you have a huge pile of dollars sitting in the bank your wealth is slowly but surely rotting away.

Very hard economic times are coming.  The inflation that the CEO of Wal-Mart is warning about is only the beginning.  Eventually we are going to see inflation in this country that is going to be absolutely mind blowing.

But don’t wait until the storm hits to start preparing.  We all have time now to prepare, so let us be wise and make the most of it.

  • 007

    I guess when the wellfare, food stamp, unemployment benefit croud realize their government handouts are becoming worthless through inflation, may be they will rethink the democrats Ponzi scheme. They will get more and more paper that will buy less and less. Live by the handout, die by the handout. When they get fed up and riot the system will have a chance to change. Wonder what will be left by then.

  • 007

    Thanks a lot Bernanke. I know you think inflation does not exist and has nothing to do with all your money printing. But this inflation really sucks. You arrogant, ignorant twit. You are such an academic why don’t you brush up on your history of the reasons for the decline of the Roman Empire.

  • Great info – keep up the good work. I figured that worse things were going to happen – just another confirmation.

    BTW you need to search for “Secrets Revealed: Fed Unveils Bank Loans Made During the Crisis

    It shows that the ‘Fed’ was loaning money left & right = that crisis was way bigger than most imagined. Now there are docs to prove it.

    I just wonder how long the emperor will be able hide behind his new clothes.


  • bailout

    end the fed!.

    thank you for this update. what will i do with my
    dollars($) anyway?

  • Nexus

    The really scary thing is that this is the top of the iceberg. There us a massive amount of money locked up in the banks, large corporates and stocks. If this is released into the economy it will release a Tsunami of inflation.

  • JohnFromIreland

    My country is also doomed, the European central bank is draining every bit of money from our economy – and it is well known that Ireland will default on its soverign debt by the end of next year.

    Bye bye Euro, bye bye Dollar – Hello new currency system (RFID based) and to finish it off IF you have any savings – they will be worth about 10% of the current value when the new currency comes into effect.

  • Veronica Deevers

    Why are we not using hemp for fuel? It makes NO sense at all. WAKE UP! Plus hemp is better than cotton, higher in protein than soy beans, needs no pesticides, is a superior rotation crop, makes great beer, soap, etc. What is WRONG with this country?

  • dandiar1

    Precaution step guys…

  • VegasBob

    What I find most astonishing is that Mr. Bernokio at the Federal Reserve is quick to claim that his money-printing has goosed up the stock market, yet out of the other side of his mouth he vociferously denies that his money-printing is causing inflation.

    He is a pathological liar. Benocide Bernokio’s rampant money-printing is the function equivalent of counterfeiting.

    Bernokio should be arrested, indicted, tried and convicted of treason.

  • Great!

    Attacking Libya in order to drive down the price of oil while we are already rapidly draining the treasury through the quagmires of Iraq and Afghanistan – while ironical not putting a dent in the price of oil (and in some ways even driving it up!).

    Yeah, while we all know that as war is one of the oldest businesses in the history of the world, and it thus is offsetting the American jobs which are being lost to globalization by providing college debt-bound youth (including the inner city affirmative action thugs – who export their gangbanging to the overseas warzones) with a source of employment — the end result is that all of this war is simultaneously draining the treasury WHILE driving up the prices of oil and other commodities.

    The bottom line is that the people at the top are the ones who benefit from war at the expense of those at the bottom anyway.

    Time to put an end to these war liabilities and start attempting to get our domestic house in order – if that can even be DONE at this point.


  • Amos Solos

    Walmart? LOL they are not reliable.

    rather get my news else where. That is like getting the rain forecast from an indian rain dancers…

    I guess it is right but, hyperinflation is coming. lot of people think we are doomed, but there are still great ways to make money. Even while the economy is collapsing around us.

    I subscribe to the guy from australia and his FFT economic newsletter at that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.

    His oil calls are insane, and I have been making good money with them. He is well worth a look, if you want to keep two steps ahead of the sheeple out there.

    I am worried about hyperinflation. Even the mrs is starting to worry about money. Now thats a sign? lol.

  • Is it any wonder? When our politicians are bought-and-paid for by the Fat Cats, and corporate profits are at their highest historical level, and the Fat Cats that fund their elections (the 1% at the top) saw a 30% increase in wages last year, WHY — WHY??? — would our trusted politicians want to change anything?

    ONLY public funding of campaigns will reverse our downward trend. And ONLY a massive turnover in 2012 will move that to happen.

    Jack Lohman

  • karen

    I buy lot’s of feed for my farm animals, feed has shot-up so high it’s aweful. I have given up tv which is only a form of mind control, don’t miss it at all, no phone either nor a dryer, I hang my clothes out which saves half on the electric bill. I do this so I can afford feed, hard times have only begun, folks if you have ears to hear, please get those gardens going, do something for yourselves, it’s only going to get worse.

  • Jeff

    “The era of massive amounts of cheap food being transported around the world using massive quantities of cheap oil is rapidly coming to an end”

    VERY GOOD POINT. The era of ALL THINGS derived from cheap oil is coming to an end though. Read the book “$20 Per Gallon” and see what the future has in store. It’s not all bad, but its going to be very different.

  • Winston Smith

    According to Federal Reserve Chairman Ben Bernanke, there is no inflation unless there is also wage inflation. Meanwhile, the Bureau of Labor Statistics reports that Q42010 seasonally adjusted CPI came in at 3.26%, and 4.26% less shelter (seasonally adjusted annualized rates). And the latest monthly figures for CPI (February, 2011) came in at SAAR’s of 6.76% and 9.21% less shelter. But the Bernanke says there is no inflation if there is no wage inflation. “Let them eat cake!”

    Be very clear, the principal purpose of quantitative easing is to improve the balance sheets of the Federal Reserve’s true constituency, the big banks. Under QE, the massive transfer of wealth from Main Street to Wall Street continues. Bernanke and his ilk couldn’t care less about Main Street as long as Wall Street is doing well. Get ready for QE3, and get ready an ugly mix of hyperinflation and stagflation — it’s a virtual fait accompli.

  • handog

    “There are millions of American families that can barely pay their mortgages and that are struggling to put food on the table for their families.”

    That’s for sure!

    “We all have time now to prepare, so let us be wise and make the most of it.”

    I wonder how those millions can prepare with their measly unemployment check. Buy some land and set up some solar panels and a wind mill? A couple of goats?

    What about those of us who have sold everything in the past three years to survive this sh*t storm?

    Some of us can only cling tight to our bug out bags and watch.

  • flubadub

    Of all the inflationary problems you mention the rising price of oil, for North America at least, is the most manageable. We have been blessed with twice as much natural gas as Saudi Arabia has oil right here in the ground beneath our fields, forests and feet here in the U.S. and Canada. If we took advantage of this resource to replace much of the oil, particularly imported oil, we burn as a transportation fuel we’d substantially reduce the demand for and price of oil. Support for the Nat Gas Act seems to be growing.,0,3331350.story

    For the forseeable future switching to natural gas is the surest way to eliminate some of the $400 billion dollars we export to OPEC countries each year.

  • JLouise

    Everyone, stock up on a weekly basis. Make a habit of putting away extra items, and it will build steadily.

  • a burnett

    So, what should I do with my rotting dollars?? You can only buy so much food.

  • impeachRonPaul

    I would not place blame on Bernake for inflation. I invest in commodities and can tell you prices are shooting up across the globe. We have more competition than ever for commodities and that will drive prices up.

    Look at input costs. Cotton,metals, and agriculture all up. They are up for everyone not just the USA. We have to stop blaming goverment for all the problems and realize we are not the only country. We can’t consume all the energy and goods anymore.

    We are competing in the labor market and we will compete for goods and commodities. Bernanke can’t change that and printing less oney will not give us more oil.

  • a burnett

    So what should I do with my rotting dollars. You can only buy so much food.

  • What our government is not willing to accept yet is that Americans are sick and tired of their quality of life being drained by this failed experiment in globalization.

    We do not want to see our jobs going overseas, and we do not want to buy products from third world economies when we have workers going without here.

    Buying American is no longer an option for most of us and it is really making a lot of people angry.

    After reading this I wonder how many people would want us to roll back free trade and pass legislation that would prohibit companies from outsourcing jobs if they employees were available here to do the work?

    Some people may think I am talking protectionism and I guess I am. From the sounds of it, its less protectionism and more pure SURVIVAL.

  • David

    America will have more serious problem than just inflation!

  • Pierre Woodman

    The problem here is that the American populace love living beyond their means, they are irresponsible, brute and ignorant; therefore, when the US Dollar collapses they will desperately cry for a quick solution, and guess what: the emergence of a new currency will be the answer to their prayers…got Amero?

  • Gabrial Singh

    yeah, I believe the liar head of walmart, about as much as I believe you. walmart, is a traitorous tool of our arch enemies in china. this guy is a walking piece of garbage, who has single handedly destroying the American middle class. God will deliver the hand of retribution, to these scumbags.

  • mondobeyondo

    As an indicator of how Main Street middle America is doing, Wal-Mart is pretty accurate in my opinion. Low prices (until recently), cheap imported products and so forth.

    Those who can’t shop at Tiffany or Nordstrom, shop at Wal-Mart. That’s the vast majority of us. If you’re engaged and just lost your home, and are living in a tent city – you are not going to Tiffany for your wedding ring. It’s fine for Donald Trump, the latest American Idol winner, and Prince William of the U.K. (um, he’s not gonna wear a ring, last I heard!!), but let’s face it, you’re not them. For you, it’s Wal-Mart and K-Mart.

    Hope you can catch that 75 percent off sale on jewelry in June.. ha!! Center aisle, blue light special, baby! Hell, I’ll even buy the cubic zirconia earrings! Double ha ha!!! The average person on the street can’t tell the difference anyway.

    The rich can absorb the hit of inflation and rising prices. Most of us cannot.

    p.s. As a final tongue in cheek:
    April 1st Special! Fool’s Gold – Today Only!
    For all you April Fools out there!

  • Lennie Pike

    The recent news concerning the activities of the Federal Reserve that they would preferred to have been kept secret, and only became known through a court order, is that at least $30 billion of that newly created money that is causing this inflation was lent to the Libyan Central Bank at interest rates lower than (Our?) Treasury has to pay for the money that the Fed (lends?) to it.

    Why the Treasury (The American Worker) pays extortion money to the Fed by paying interest is the only question really, but that is a different issue which will hopefully be resolved soon.

    See that Israelis and Americans?, the owners of the Federal Reserve couldn’t care less about you, they have been helping your enemies – they just want the money any way they can get it.

    If the entire U.S. Congress and Department of Justice didn’t work for the owners of the Federal Reserve, there would obviously be Congressional treason hearings and convictions.

  • bobbobbobbob

    All italians have medical and dental and all brits and the french how about u? Who controls this web sight??? The super rich. U r poor poor Amerikans. Remember blame Obama
    The rich transported all the good manufacturing jobs.i.e. walmartt. Tooth ache go cvs. U r poor now!!! Not tomorrow!!! Your day is over. Remember toothache may lead to blood poisening. See u in med school as a cadaver.

  • Seeker

    Every, and I mean EVERY time I go to any of a few big name supermarkets in north Philadelphia there are people in my checkout line (not to mention the other dozen or more lines) paying with their food debit cards (modern food stamps). Last night I saw a woman in front of me buy $124 worth of food, most of it sugar-based junk food and soft drinks.

    Create digital fantasy money, issue it to lower income people to keep them happy and fed, they swipe the card, the supermarkets take their cut, and Kraft, Nabisco, PepsiCo make their money. It’s basically channeling money to big corporations.

  • Well that is capitalism for you, this was really quite inevitable. People, we need to start looking into self sustainability – We can’t rely on our countries to look out for us anymore. Educate yourself on how to survive, that is my suggestion to you.

    Join The Zeitgeist Movement.

  • impeachRonPaul

    Republicans war on the middle class: The middle class is losing

  • Most people just bury their heads in the sand in North America and say that a deep depression will never happen here. The young generation won’t even know what hit them when it happens.

  • Thanks for another very informative article!!! The Middle Class is just about a thing of the past!!! What the “Wal-mart” CEO is saying is a very good indicator of increased prices in the US. The problem though with “Wal-mart is all the Chinese junk coming into the US. The European Debt Crisis is going to start a domino effect around the world by this summer!!! With the price of inflation and the price of oil going through the ceiling, what chance does the Middle Class really have? Also this summer the world’s population will reach 7 billion people!!! That’s 7 billion consumers, the world cannot possibly feed all these people. India will surpass China here soon in population figures. Wake up folks before everything crashes and burns!!! The Lord God (Jesus) is about to enter into the affairs of mankind with His 14 judgments. Read God’s Word today my friends, you will be eternally glad you did!!! Daniel and Revelation is a road-map to the kingdom of God!!!

  • TucsonKK

    Inflation has been around for at least a year but hidden in small & smaller packages, but good old Ben says inflation wasn’t a problem.

    Now we can blame inflation on OIL, LUCKY BEN

  • CincyChris

    What to do with your rotting federal reserve notes? Prepare. Prepare. Prepare.
    What if you woke up tomorrow to a completely different world? A world where the electricity stopped working, the fresh water stopped flowing. A world where the population decided there was no point in going to their jobs.
    Where would you get food and water to sustain you AND your family? Would you be able to protect your loved ones from those who weren’t prepared (people do crazy things when pushed to the brink)? What if all this went on for 6 months? A year? Will you be prepared?
    Federal Reserve Notes will do you no good. Exchange them for items of REAL value- food, guns, and precious metals, to name a few. When the Dollar is no longer worth a penny, these items will still have value (through barter).

  • Richard

    Americans are just warming up to the collapse. We have barely crossed the first phase of the collapse – Phase I. We still have three more phases of the collapse to go!
    Its like a train wreck in slow motion!

  • Louise in MO

    I did some shopping today at WalMart….the prices are higher than two weeks ago….on most items….25 cents here, 30 cents there.

    Shop and Save and Aldi’s are still keeping their prices down if you don’t mind buying an off brand. The quality is good and in some instances better.

    You can still eat well and feed your family nutritious food if you will take the time to know your grocery stores, shop special sales and use coupons.

  • When the 2020s come it will be a nightmare. Entitlement spending will outpace defense spending. And interest on the debt will be the same amount as the Dod’s budget. I shudder of what America will look like by the end of this decade into the next one because this debt load is a tumor and at some point cutting the tumor will be too late and the operation will be messy.

    We help Americans find jobs and prosperity in Asia. For details, visit

  • “impeachronpaul” What an utter hack you are! Your concepts are typical retreads of official democratic party line dribble, the fact is that both the Democratic Party and the Republican Party have been in bed with those interests that seek to control monetary and economic movement in this country for decades. The Democratic Party has hidden behind the slogans for decades that they are for the little man and they are, as long as they can keep them “little” and oppress their ability to gain a foot-hold in the economic processes.

    Every monetary and economic policy proposed by and voted for by the Democrats, as well as most Republicans, benefits the patronage system, not the little man, not the middle class, but the patrons of big government and corporatism where monopolies are handed out and enlarged by regulations, laws and policies crafted to protect certain interests against market competition. Wake up you twit. If you really think that the Democratic Party is actually interested in the little man, then review laws put into place by the Democratic Party over the last 70 or more years, research the results of those laws and I think you will find that the Democratic Leadership is little different than the Republican Leadership.

  • Jasper

    fight the power

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    – Automobiles which used 1,119.75 tonnes [36 million ounces] of silver.
    – Electrical and electronics demand for silver reached an all-time high of 7,555.21 tonnes [242.9 million ounces].
    – Solar Power in 2011 is expected to reach 2,177.29 tonnes [70 million ounces], up 40%.
    – RFID tags in 2010 reached between 31 and 62 tonnes with a long way to go before reaching full market.
    – Water purification used 62 tonnes [2 million ounces] set to grow to 74.65 tonnes [2.4 million ounces].
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    – The use of nano-silver in goods packaging and hygiene combined would consume 124.4 tonnes [4 million ounces] of silver over the next five years.”

  • Remmy

    Guys, don’t think this wouldn’t have happened if there was a republican president, fact is the government tries to manage as best as it can, prepare while the full force starts to hit.

    Invest your money made into gold, silver and agriculture. If you want to invest try investing in anything that will advance electric/hybrid cars, possibly durable energy, but be careful on biofuels, when foodprices soar those will soar too.
    Those might very well keep your money value from rotting away when inflation strikes, if you still got some money left dont wait till your savings will be useless.

  • Gary2

    Tax the rich and spread the wealth=no inflation worries.

    Wal-Mart needs to be unionized and forced to pay a living wage. I think the Walton’s have enough money. Time to tax them and spread the wealth. They got rich by exploiting their workers. I do not think this can be debated. I hope the supreme court kicks their ass in the class action lawsuit. (it is right wing pro business and anti worker so I am not holding my breath)

  • Terry

    I am tired of seeing people blame capitalism. In a capitalist system, all of the TBTF banks would be gone. The USA is largely socialist, and that is working no better here than any other place it has been tried.The US economic system can be called a lot of things, but capitalist is not one of them.

  • Terry

    Gary2–I hope you are not stupid enough to believe the things you write, and are simply having fun “stirring the pot”

  • Paul

    Drowning in Debts?
    Why buy things for a loan, if you can’t afford them even without the interest payments?

  • Don

    However we got here and whoever’s fault it is doesn’t change the fact that gas and food with be more expensive in the near future. Make sure
    your family is prepared.

  • Sherlock

    Australia is doing pretty well considering. We produce coal which China loves. We export gold which is popular at the moment. Our banks have government backed guarantees. Unemployment here is at %5 which some people think is close to full employment.

    Our problem is a lack of affordable housing and temporary bottlenecks caused by floods. We are seeing some inflation too.

  • Steven

    Instead of sugar use stevia. Learn how to use it now so when the collapse happens you can use it for trade. Its better than sugar.

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