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Offline RomanCatholic1953

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When Inflation Drives you to spend 40% of Income on Food?
« on: May 07, 2021, 08:39:11 AM »
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  • What Will You Do When Inflation Forces U.S. Households To Spend 40 Percent Of Their Incomes On Food?

    Source: Michael Snyder

    5/6/21

    Did you know that the price of corn has risen 142 percent in the last 12 months?  Of course corn is used in hundreds of different products we buy at the grocery store, and so everyone is going to feel the pain of this price increase.  But it isn’t just the price of corn that is going crazy.  We are seeing food prices shoot up dramatically all across the industry, and experts are warning that this is just the very beginning.  So if you think that food prices are bad now, just wait, because they are going to get a whole lot worse.
    Typically, Americans spend approximately 10 percent of their disposable personal incomes on food.  The following comes directly from the USDA website
    Quote
    In 2019, Americans spent an average of 9.5 percent of their disposable personal incomes on food—divided between food at home (4.9 percent) and food away from home (4.6 percent). Between 1960 and 1998, the average share of disposable personal income spent on total food by Americans, on average, fell from 17.0 to 10.1 percent, driven by a declining share of income spent on food at home.
    Needless to say, the poorest Americans spend more of their incomes on food than the richest Americans.
    According to the USDA, the poorest households spent an average of 36 percent of their disposable personal incomes on food in 2019…
    Quote
    As their incomes rise, households spend more money on food, but it represents a smaller overall budget share. In 2019, households in the lowest income quintile spent an average of $4,400 on food (representing 36.0 percent of income), while households in the highest income quintile spent an average of $13,987 on food (representing 8.0 percent of income).
    Needless to say, the final numbers for 2020 will be quite a bit higher, and many believe that eventually the percentage of disposable personal income that the average U.S. household spends on food .
    That would mean that many poor households would end up spending well over 50 percent of their personal disposable incomes just on food.
    At one time that would have been unimaginable, but now everything is changing.  As I noted above, the price of corn his increased [url=https://markets.businessinsider.com/news/stocks/corn-prices-jumped-142-past-year-demand-china-drought-brazil-2021-5-1030386126]142 percent
    since this time last year…
    Quote
    Corn prices have jumped roughly 142% over the past year to $7.56 per bushel, the highest price seen in eight years for the crop.
    A drought in Brazil and increased demand in China have put pressure on global suppliers.
    In other areas we are seeing more moderate inflation, but overall we just witnessed the largest increase in food inflation “in almost nine years”
    Quote
    The average prices in March of 2021 for pork chops and chicken breasts are both up more than 10% compared to March of 2020. Eggs and cheddar cheese are both up 6%.
    Looking at all consumer goods as a whole, the latest inflation data in the Consumer Price Index from the U.S. Bureau of Labor Statistics shows the largest month-to-month increase in almost nine years.
    Meanwhile, the price of lumber just continues to shoot even higher.
    In New Jersey, one man says that the total cost of lumber used in building his new home will reach $70,000
    Quote
    Tom McCarthy can’t finish building a home in Bergen County, New Jersey because of the lumber shortage.
    “There are pieces of wood that we can’t find,” said McCarthy, a real estate broker with the Chen Agency who also builds homes with his father on the side.
    McCarthy estimates the cost of lumber for the home will hit $70,000, nearly double the cost of building the exact same home in a nearby town just eight months ago.
    Isn’t that nuts?
    Instead of building a new home, you could try buying an existing one instead, but real estate prices in many areas have gotten completely insane.
    In northern California, one house recently sold for more than a million dollars over listing price
    Quote
    When a house in Berkeley sold for more than $1 million over its list price in late March 2021, it was covered in media outlets across the Bay Area, including this one.
    While the Berkeley sale was particularly sensational — it sold for double its list price and received 29 offers — these individual stories are becoming more common in today’s real estate market, according to recent data and anecdotes from real estate professionals.
    I never imagined that I would see such a thing happen.
    But one real estate agent says that such wild bidding wars are becoming increasingly common
    Quote
    And that’s especially true in the East Bay. “People are not surprised when a home goes $1 million over,” said Josh Dickinson, the founder of real estate agency Zip Code East Bay. “When my clients see a house for $1.9 million they’re almost conditioned to think it’ll go over $3 million in Piedmont or North Berkeley.”
    This is what the beginning stages of hyperinflation look like, but Federal Reserve officials insist that we have nothing to be concerned about.
    In fact, Eric Rosengren just told the press that the crazy inflation we are seeing now “is likely to prove temporary”
    Quote
    Boston Federal Reserve President Eric Rosengren in an interview with MarketWatch on Wednesday dismissed talk of scaling back asset purchases as premature, and said temporary factors pushing up inflation this spring won’t last.
    “My view is that this acceleration in the rate of price increases is likely to prove temporary,” Rosengren said Wednesday.
    Do you believe him?
    I don’t.
    As Simon Black has pointed out, the federal government is just going to continue to borrow and spend trillions upon trillions of dollars…
    Quote
    This is the big one. The US federal government is hoping to spend a whopping $11 TRILLION this year, between the regular budget, COVID stimulus already passed, and all the new legislation they’re proposing.
    And it’s only May.
    Obviously Uncle Sam doesn’t have the money. So they have to borrow it.
    Almost everybody loved it when the federal government started sending out big, fat stimulus checks.
    But you aren’t going to love it when a cart of food costs you $400 at the grocery store.
    Whenever the government hands out “free money”, someone has got to pay for it, and one way we are paying for it is through higher prices.
    If you do not believe that this is a major national crisis yet, you will soon, because it won’t be too long before most of the country is loudly complaining about how nightmarish inflation has become.
    ***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available  and [url=https://www.amazon.com/gp/product/B08DJ6Y81Q/ref=as_li_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B08DJ6Y81Q&linkCode=as2&tag=httpwwwchanco-20 the Kindle on Amazon.***
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    I remember when I was a kid in the early 1950's you can spend $20.00 to buy enough grocery's to fill a shopping cart.

    Offline SeanJohnson

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #1 on: May 07, 2021, 09:30:27 AM »
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  • Food inflation is a serious concern, especially for larger Catholic families.

    In Minnesota, food is more expensive that most places to begin with (because of all the regulations and cost associated with bringing food to market here).

    I currently spend around $1,200-$1,300/month on food for our family of seven children, and that’s shopping at Walmart and Aldi’s, and with another bun in the oven, and my oldest only 13 years-old, I’m wondering how much I’ll be spending in 5-7 years, when I might have 9 kids (with 5 of them being teenage boys wanting steak)!

    Neither does my current food expenditure take into account gas station snacks after Masses, vitamins/supplements, and a couple times each month going out to eat.

    I am forecasting needing to spend $2,500 month by then, just in food (presuming food is still available and attainable then, and not affected by hyperinflation or government created scarcity, a la Hunger Games).

    What about Catholic families with 10-15 kids???

    We will all be on government food stamps, and then they have you dependent.

    Naturally, I buy bulk whenever possible, including whole hogs and sides of beef, but the savings are minimal doing that (I do it for health and preparedness reasons).

    Food prices are definitely a major problem.





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    Online Ladislaus

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #2 on: May 07, 2021, 09:38:51 AM »
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  • I currently spend around $1,200-$1,300/month on food for our family of seven children, and that’s shopping at Walmart and Aldi’s ...

    I'm right there with you.  When I tell people that my monthly food bill is as much as my mortgage payment, they're stunned.  People who don't have large families (very few have more than 1 or 2 kids anymore) just don't get it.

    Offline Matthew

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #3 on: May 07, 2021, 10:42:26 AM »
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  • Two points:

    1. The more you can train your kids to A) cook and B) eat homemade food, the more you're going to save on food. Ingredients for food are always many times cheaper than convenience foods (think: the frozen aisle) or prepared meals. 

    2. There are things we all can control, and things we can't. Obviously if food inflation comes, we'll have to deal with it, unless we can become self-sufficient in food. Most of us can't attain this even if we wanted to. BUT what we can do, at least if we awaken early enough, is to avoid paying INTEREST wherever possible. That is money purely wasted. Things like taxes, property taxes, food prices, utilities -- those things are outside our control. Remember the Serenity Prayer: "God grant me the courage to change the things I can, the serenity to accept the things I can't, and the wisdom to know the difference." It's not just a trite Alcoholics αnσnymσus slogan. It's true. There are things we can do something about, and things we can't. It behooves us to be at peace about the things we can't change -- but do everything we can in the areas where we DO still have control.
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    Offline gladius_veritatis

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #4 on: May 07, 2021, 11:53:39 AM »
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  • The more you can train your kids to A) cook and B) eat homemade food, the more you're going to save on food. Ingredients for food are always many times cheaper than convenience foods (think: the frozen aisle) or prepared meals.
    Teach them to hunt and fish and garden, too, to whatever degree is possible within your circumstances.  Regular fasting, even when not required by Holy Church, has several practical benefits.
    + Vincit veritas +


    Offline Viva Cristo Rey

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #5 on: May 07, 2021, 12:05:57 PM »
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  • They are going to force people to get ναccιnαted to get food at grocery store or food stamps.

    Those survival tv shows was to prepare us for the future.  They are sick sadists. For real.

    I just gave some supplies like oatmeal, quinoa, spaghetti, tea, coffee, boxed soups etc. to my sister who didn’t have much during first lσcкdσωn. Where she lived, there were fist fights at local grocery store.

    Intermittent fasting coming soon.

    They are creating lumber and ammo shortages on purpose. 

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    Offline gladius_veritatis

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #6 on: May 07, 2021, 12:08:33 PM »
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  • Where she lived, there were fist fights at local grocery store.
    I am sure it is easier said than done, but she might want to consider moving.  Much nastier times are certain, although the timetable thereof is not.
    + Vincit veritas +

    Offline gladius_veritatis

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #7 on: May 07, 2021, 12:11:59 PM »
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  • I’m wondering how much I’ll be spending in 5-7 years, when I might have 9 kids (with 5 of them being teenage boys wanting steak)!
    FIVE teenage boys??!!  Can you say FREE labor, a tight-knit Unit for hunting, raising and butchering animals, etc.  
    While there is much about such a scenario to cause worry to any parent, there are some advantages, too.  
    + Vincit veritas +


    Offline Viva Cristo Rey

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #8 on: May 08, 2021, 05:30:50 AM »
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  • I am sure it is easier said than done, but she might want to consider moving.  Much nastier times are certain, although the timetable thereof is not.
    She is trying to move.
    To live with the Saints in Heaven is all bliss and glory....To live with the saints on Earth is just another story!  (unknown)

    Offline Last Tradhican

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #9 on: May 08, 2021, 05:42:42 AM »
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  • FIVE teenage boys??!!  Can you say FREE labor, a tight-knit Unit for hunting, raising and butchering animals, etc.  
    While there is much about such a scenario to cause worry to any parent, there are some advantages, too.  
    Parents today teach nothing to their children, they just give them a screen to look at (TV, Computer, cell phones). I do not see it any better with trads.
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    Offline Nadir

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #10 on: May 09, 2021, 06:05:44 AM »
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  • Quote
    I might have 9 kids (with 5 of them being teenage boys wanting steak)!
    More potatoes, man!
    Steak is luxury in my book.
    Dried beans are good to store and need no refrigeration. Get the boys growing them. They’re good tucker.


    Offline s2srea

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    Re: When Inflation Drives you to spend 40% of Income on Food?
    « Reply #11 on: May 09, 2021, 06:43:46 AM »
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  • Parents today teach nothing to their children, they just give them a screen to look at (TV, Computer, cell phones). I do not see it any better with trads.
    You cannot give what you do not have...... How many of us grew up hunting, farming, etc? Not me. There's a learning curve, even for trads. From the looks of things, it's gonna be a sharp curve in the near future. 


     

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