Not everything we write is about real estate.
Today it was announced that consumer prices have dropped a record 1%, the largest decline since 1947.
Why? Simply put, there is increased competition by retailers to get our dollar. We, as consumers are spending less as we deal with reduced disposable income and a continued rise and threat of job loss.
How does this affect us? Reduced prices on our daily consumables…food, clothing, heating, electricity, automobiles and gasoline.
No secret…gasoline has seen the biggest reduction dropping over 14% and has had the greatest impact on the drop in Consumer Prices.
This drop in consumer pricing is the opposite of inflation…and a good thing if you have money to spare.
Keep in mind…
Gasoline…huge price drop! Why? Are we being duped by OPEC? Is there any real threats to our oil sources or are we being controlled by greedy sheiks, the Russian mob and Chevron? My thoughts is yes to the latter.
As consumers and I’m talking about all consumers in the free world, we are at the mercy of OPEC. They are the largest dynamic in the price of petroleum. I say dynamic as they are constantly changing. Our prices are going up because of the war in Iraq and Afghanistan…Pirates in Somalia…know its the lack of available drilling off the Eastern seaboard. What next?
Anyways…with consumer pricing dropping look for all aspects of life to change. Manufacturers will be more competitive to get retailers to buy their production and retailers will continue to lower their prices to get us, the consumers to part with our almighty dollar.
More to come!
