Thursday, June 25, 2015

The Buy More, Pay More Non-Economy of Oversupply

Rampant stupidity.

Cars and trucks are not the only commodity that is in oversupply.

Went to the local grocery the other day and wanted one of those "salad in a bag" deals. Sign said, "Buy 1 get 2 free." Since I am single, and camping for the summer, one bag is all I needed and the other two would likely go bad within days. Price for the "deal" was $3.89. These bags normally go for $1.25-1.50 each, so no big deal.

Went to the manager and complained. Ended up buying one bag for $1.30, but, but, but, I had to sign a non-disclosure statement and produce my driver's license. Additionally, I was banned from ever shopping in the store ever again upon threat of death or incarceration.

OK, everything after the $1.30 in that last sentence is there for pure entertainment value, but I did have to check out at the customer service desk and received an undeniable, disparaging glare from the store manager (owner). The twithead didn't even have the cajones to introduce himself or talk to me; just a mean stare, as if to say, "you're not supposed to be smart or question our pricing policies."

My take is that the new brand of "Shure-fine" salad bags which replaced the "Dole" bags are in severe oversupply and the store is wishing to unload them ASAP because they don't keep longer than a few days before spoiling. Trouble is, we're deep in farm country here and every other house has a garden and probably are producing more than enough of their own lettuce and vegetables.

So, oversupply from the good folks at Monsnto, Cargill, et. al., and "no salad for you" unless you buy lots of it.

Oversupply is "the" problem of the 2010s. We are in year six or eight of a 15-18-year depression and it's likely to get worse before it gets better.

In 2012, I said I'd wait until silver hit $17 to buy more. Acutally waited until it hit $15. My next purchase will be at $12, then maybe $6, when the bottom falls completely out of the oversupplied commodity market.

In Ameri-whoopie-i-o-yah-Ka, at least, we have too much of everything except common sense (h/t to Mencken).

The soon-to-be-rammed-down-our-throats-job-killing TPP will accelerate the process of bringing American wages in line with the rest of the planet. Cops, politicians, bankers and schoolteachers will be wealthy in coming years, but as many begin to retire, the defaults on pensions will also accelerate.

Can't fix stupid and can't beat math. A rigid dichotomy, for sure.

All the best. Eat well, live well, die hard.

Editor's Note: Fearless Rick has been and continues to spend the summer months camping at a secret location (Sodus, NY) and will be posting irregular snippets about life in farm country.

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