Thursday, February 3, 2011

Inflation Everwhere, But Still Nowhere To Be Seen?

Inflation is everywhere, but still nowhere to be seen? Not for long.

The true meaning of the headline below would not be missed by the citizens of any hyperinflationary experience throughout history (i.e. Weimar Republic).

Headline: Companies Stock Up as Commodities Prices Rise

Companies contending with rising commodity prices are stockpiling rubber tires, cotton clothing and other goods, a maneuver that is aimed at insulating them from inflation but also could contribute to it.

Spice-maker McCormick & Co. stocked up on some ingredients and Monro Muffler Brake Inc. bought extra tires and motor oil, assuming prices of those goods will keep rising. Anton Sport, a small athletic-wear wholesaler in Tempe, Ariz., amped up its fabric purchases to avoid higher prices.

Source: online.wsj.com

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