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Hyperdeflation Has Begun

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posted on Aug, 29 2010 @ 12:19 AM
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The last time Kmart had a big sale I had added over 25 items to my cart, placed my order and a few days later, I got 25 emails one for each item saying they were out of stock.
I won't shop online at Kmart any longer.




posted on Aug, 29 2010 @ 12:35 AM
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Let me step in here in agreement with OP. I never remember seeing huge reductions like that from major retailers. 20% was a lot.

If they had to reduce prices like that, they would wholesale them out to someone else to get rid of them. They don't want prices like that in their store. I guess the wholesale avenue isn't available any more.

It is an interesting datapoint.



posted on Aug, 29 2010 @ 12:36 AM
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reply to post by virraszto
 


But didn't they agree to honor the sale price if you waited for them to get the item in again?



posted on Aug, 29 2010 @ 12:44 AM
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Originally posted by LoneGunMan
... This is why sales happen, it is very seldom that they have a sale because the item is not selling. Believe me what you witnessed was that on progress.

It goes in increments until they reach a certain point in profit then they blow it out. It was your perception that they were not selling, when in fact I bet they were restocking them at a constant rate.

Walmart is the company that does it best though. Especially in clothing. That is why you can pick up a nice $3.00 dollar blouse!

Old clothes, especially one or more seasons out of fashion, are indeed dumped cheap. (and of course Big Macs are thrown out altogether when they get too old under the heat lamp, at least they're supposed to be.) This seems a little different.

Stores like Marshall's have staged discounts like you say, but those are stores that specialize in it. Walmart or K-Mart generally have a price for an item and that's it. You want item X, you go in and there's a single price for it.

If they're restocking these exercise machines at a constant rate, does that mean the newly received items have a higher price tag, so the shopper sees two prices and gets to pay more or less whichever he prefers?


Or all the newly received ones are in the back gathering dust and "depreciating" while they're trying to blow out the oldest ones?

I don't think you are describing the retail reality I've seen.



posted on Aug, 29 2010 @ 12:47 AM
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Originally posted by oniongrass
reply to post by virraszto
 


But didn't they agree to honor the sale price if you waited for them to get the item in again?


No, they didn't. I even wrote emails to the corporate office and called on the phone to tell them how upset I was. The reply to my email really p'd me off because it didn't say they were sorry they were out of stock, it said they were sorry I was having a problem with the website.



posted on Aug, 29 2010 @ 08:11 AM
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Actually we seem to be in complete stasis right now. I have noticed (at least around Atlanta area) that non-food prices have stayed very steady - dropped a little when the sales are on. You can get good deals - maybe this is one of them. I think this period of deflation could last 2 - 3 years and may be very slow process. I still think we are at the beginning stages of a great depression.

Food prices seem a little higher and the sales are not as good. I have noticed this trend even if the USDA says differently. Maybe they shop at one of the govt-subsidized stores.



posted on Aug, 29 2010 @ 09:00 AM
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reply to post by Kenesay200
 


I agree with you. I think we are on the verge of a depression. I am a bargain shopper, that is what I do. And I will tell you that I have never seen prices reduced this much on this type of item.



posted on Aug, 29 2010 @ 09:03 AM
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reply to post by oniongrass
 


I used to work in retail for many years. Like I have said before, there was never price reductions like this. People think I am overreacting but if my theory is correct, we should start seeing prices being reduced in other areas as well. I will watch for it.



posted on Aug, 29 2010 @ 09:04 AM
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I do not live in US so I'm not sure what's happening. If it's true what you posted, maybe the effects are local for now.

I've not seen decrease in prices of items on Ebay or American products imported into my country.



posted on Aug, 29 2010 @ 09:11 AM
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reply to post by saltheart foamfollower
 


November elections are coming up. Ben Bernanke talked about buying more bank bonds and printing more money. How can they make the economy look good before the elections?



posted on Aug, 29 2010 @ 09:32 AM
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reply to post by prophecywatcher
 




Have you ever seen a treadmill that was $359.00, I think it was, marked down to $59.00 new?

Now don't get me wrong, but if hyperinflation was in effect, wouldn't everything cost alot more than in the past?

so if a treadmill was $359, w/ hyperinflation wouldnt it now cost like $500?



posted on Aug, 29 2010 @ 09:35 AM
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reply to post by dominicus
 


You're right, but it says hyperdeflation.



posted on Aug, 29 2010 @ 03:39 PM
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reply to post by prophecywatcher
 


Well, you did do some research. I'm interested to see what other facts you come up with. I've noticed that things like video games are always exactly the same price and never go on sale, similar with other electronics like game systems, computers, televisions, etc.

*****Speculation Here on Low Prices*****
I'm using supply and demand for the following speculation.

The situation of electronics might change. The next generation of game systems might not be very popular. My reasoning for this is because online gaming is taking off, and game systems like xbox 360 and PS3 are already covering a lot of bases. There might be a good secondary market on that stuff, it is entertainment after all. The next generation of television is 3D - there is already high definition so high that it makes ME feel high / sick to watch it, so that avenue is closed. Computers have reached great computing capacity, as has hard drive space.

Other things like household appliances, etc... I could see going down in price because no one really needs them. Everyone seems to be making do with what they have, and there is excess of everything.

*****Speculation on High Prices, Annoyances*****
I don't think everything is going to be dandy, though.

Food, I could see going up in price because people need it to survive and there could be food shortages.

I could see property going up in price, because owning a house and land is also a basic need - shelter. And owning your own property gives you power over your own life.

Utilities, including internet and cell phone service, water and power could go up in price, because people need these. The internet could go up in price so much that you might end up paying per website, and the free downloading will be heavily monitored.

Jobs will probably be hard to come by, especially ones that pay enough money to do more than live paycheck to paycheck and rent property. This means more stress.

***********

In all, I think the situation in America is such that looking for evidence of this phenomenon is something that might bear fruit.

[edit on 29-8-2010 by darkbake]



posted on Aug, 29 2010 @ 04:20 PM
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reply to post by darkbake
 


Property values are going down so this one is deflationary. People don't really need houses, they can rent. Owning a house is considered a luxury.

On the other hand, shelter is a need so you could probably expect rentals to go up, not enough supply for the demand.

[edit on 29-8-2010 by prophecywatcher]



posted on Aug, 29 2010 @ 05:21 PM
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Originally posted by prophecywatcher
I had heard that when the economy crashes inflation and deflation happen at the same time.

Commodities like food and gas will sky rocket and the prices on things we don't need will drop dramatically.


That is true and allot of that is already happening. Most products just drop dramatically and so fast that they stop making it in many cases. The next thing that will happen is war. Gas and food will shoot through the roof. Everything else will just about stop being sold to the public do to lack of transportation thanks to ridiculous fuel prices. Fuel can only go up so much and all the truckers will quit.



posted on Aug, 29 2010 @ 05:26 PM
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Originally posted by prophecywatcher
reply to post by darkbake
 


Property values are going down so this one is deflationary. People don't really need houses, they can rent. Owning a house is considered a luxury.

On the other hand, shelter is a need so you could probably expect rentals to go up, not enough supply for the demand.

[edit on 29-8-2010 by prophecywatcher]


I own a house that should sell for $135-$140,000.00, now the county has a market value of $60,000.00 on it.


Why pay rent for a house when it would cost you the same monthly to buy it? The problem is unless your a first time homeowner you wont get a good loan even if your credit is not in shambles like most people these days.



posted on Aug, 29 2010 @ 05:48 PM
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Here is a recent article I found on how the risk of deflation is rising.

www.foxbusiness.com...

Two more recent articles were put out by The New York Times and The Wall Street Journal on how to deal with deflation.

badmoneyadvice.com...

Both are interesting articles, but do they know something we don't know about what could be coming? Does Kmart have some insider information that is causing them to sell off their products at ridiculous prices?

Ben Bernanke made a speech on Friday and seemed worried about the economy. Will all of this affect the stock market in the days to come?


[edit on 29-8-2010 by prophecywatcher]

[edit on 29-8-2010 by prophecywatcher]



posted on Aug, 29 2010 @ 05:49 PM
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Coke, which is usually $4.69 for a 12-pack at my local grocery store, was on sale for 4 for $12. That's just $3 per 12 pack, a reduction of over 35%! I can only assume this means Coke will is going bankrupt and will shut down soon. The entire US economy will certainly follow within days.



posted on Aug, 29 2010 @ 05:57 PM
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reply to post by nataylor
 


It sounds like too much supply, not enough demand. Or they could be running a sale to get people to buy. Either way, it can't be good.



posted on Aug, 29 2010 @ 06:01 PM
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Originally posted by oniongrass

If they're restocking these exercise machines at a constant rate, does that mean the newly received items have a higher price tag, so the shopper sees two prices and gets to pay more or less whichever he prefers?


Or all the newly received ones are in the back gathering dust and "depreciating" while they're trying to blow out the oldest ones?

I don't think you are describing the retail reality I've seen.


No what it means is that they lets say purchased 100,000 machines at $100.00 dollars each. They sell 30,000 at lets say $300.00 each. After they sell that first 30,000 now from this point forward every machine they sell is pure profit.

Now they will mark them down a little for a perceived deal. They sell another 30,000 at the discounted price. Those 30,000 machines were pure profit for the company. now they have 40,000 in the warehouse. Now the buyers for K-Mart have purchased something else at a big discount and desperately need the warehouse space for the 100,000 items they bought at a great deal.

At this point they can sell these last 40,000 machines for $1.00 and still make $40,000 dollars. They wont do that because they know they can still sell them out in time at the price the OP saw them for and cash out even more.

This is the way it works. Its just a fact of retail marketing in this global market.

[edit on 29-8-2010 by LoneGunMan]




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