Whirlpool reports - "UNPRECEDENTED INFLATION"
seattlepi.nwsource.com
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"During the fourth quarter, we announced that we were taking specific actions to offset unprecedented levels of material and oil-related cost increases," said Jeff M. Fettig, Whirlpool's chairman, president and chief executive officer.
Those increases accelerated during the quarter, he said, and the Benton Harbor-based company estimates that its material costs will increase another 7 percent to 8 percent during 2005.
Fettig said Whirlpool helped offset costs by implementing global price increases of 5 percent to 10 percent, effective Jan. 1. It had announced the increases in October.
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"Unprecedented" - being the keyword & concept there people.
I spoke about this earlier - as the absolute #1 story in small business on "Main St USA"... and it is going to become one of - if not the biggest story for Big Business and the Markets in 2005....and that's good for Gold.
The next leg up for POG - will not have to be (and probably will not be) USD driven.
Inflation... is now the catalyst for POG.
People & the Markets will begin to ignore the bogus Government Inflation numbers... and this will be a headline story for the Media in 2005 - ie: the irrational & completely bogus inflation numbers spewed forth by the Government.
Bill Gross, Roach & others have been pounding this drum for some time... and this is not new - news to many of us... but, you've had the likes of Kudlow & Cramers waving the Pom-Poms about a low inflation environment & every Bull-Pundit in the Media re-assuring us all at every opportunity - that we've only got 2% inflation in America.
The only "Bull" in there case about inflation... is the "Bull$Hi^" nature of their numbers.
Mr & Mrs. Main St USA will begin to see the light in 2005 - and this will be a major media story - soon....ie: the absolute bogus inflation numbers continually served up as financial "soylent green" to the masses ...
Property Taxes are ramping across the US from the Housing Bubble... rates are driving up payments on Variable rate Home Equity & Consumer Credit lines... Insurance - be it Homeowners, Health & Medical, or Business Insurance is ramping in cost... Food, Energy and now Imports with a weaker USD are ramping in costs...
Give me an "I"... an "N"...an"F"..give me a "L"...an - A-T-I-O-N.
...what does it spell ?
Higher POG.
Good news is that for the 1st time in recent history - US Corporations are net lenders... balance sheets are flush with cash - corporations are lean & mean. They've held off price increases & wage pressure for as long as they could... that is now ending.
Price increases are finally going to become the norm - with many increases being substantial... and wage pressure to follow.
Jobs will be key... if Job Growth Continues & Wage Increases offset some of these rising prices & Interest Rates...the Consumer Spending Economy may stay hotter than people think, for longer than they think... and POG may be ready for it's next leg up with it's old friend - Mr. Inflation being the catalyst. |
