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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Mike da bear who wrote (69378)	9/24/2007 9:19:48 AM
From: sea_biscuit	Read Replies (2) \| Respond to of 116555

Well you need to be like Mish and only buy the loss leaders. Go get 50 lbs of that 1.19 steak on sale and only eat that. Skip the veggies and dairy products. Mish has harped on the same theme for years. Because supermarkets advertise loss leaders he feels food is a bargain. That almost sounds like a BLS official saying inflation is low! LOL

To: Mike da bear who wrote (69378)	9/24/2007 11:19:27 AM
From: mishedlo	Read Replies (4) \| Respond to of 116555

I buy what is on sale. Meat is the largest part of our food budget. I buy a lot of cheese as well. Buy those on sale and prices have not changed much for years. Sale prices are what they were 5 years ago. Same on beer and pop although pop sales are getting less and less frequent. Turkey, chicken, ham, beef, pork prices on sale have hardly budged. Buy a freezer and stock up on sale items. We do not drink enough milk to mater. Egg prices seem reasonable enough but I do not remember historic prices. Again, we do not go thru a lot of eggs. Yes, I am aware fresh vegetables have gone up a lot in price. It's simply not a large part of our budget. Mish

To: Mike da bear who wrote (69378)	9/24/2007 12:41:09 PM
From: sea_biscuit	Respond to of 116555

Well, if food prices continue to rise like this, the BLS will be forced to include this in their useless inflation reports : (Note : This is from an actual BLS document regarding ice cream and dessert. I have made a few changes to suit the current scenario) "Substitution can take several forms corresponding to the types of item- and outlet-specific prices used to construct the basic indexes. . . . Thus, in response to an increase in the price charged by a store for food, a consumer could respond by: Redistributing purchases: * To another type of food whose price had not risen. * To a larger package of food with a smaller price per ounce. * To food at a different store where the item is on sale. * To a brand of frozen food. The consumer also could respond by postponing the food purchase until a later date. Finally, the consumer could substitute from the said food item to a specific alternative food item, such as sawdust or sand, which is another CPI category. This latter form of substitution, although across CPI categories, would still have the effect of reducing the quantity consumed of the higher-priced food brand relative to the quantities of other items within the food stratum. . . . In the same way, the use of the geometric mean formula within categories does not address the issue of whether consumers can, or do, respond to a general increase in the price of food products by, for example, forgoing food."