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SUBSIM: The Web's #1 resource for all submarine & naval simulations since 1997 |
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#9241 |
Lucky Jack
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Probably. What was discussed is only conjecture.
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“You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road |
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#9242 |
Chief of the Boat
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#9243 | |
Chief of the Boat
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This is from last night but I'm surprised this guy has the cheek to stand up and give a speech on politics.
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#9244 | |
Shark above Space Chicken
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"However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie |
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#9245 |
In the Brig
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I know right? And another thing that bothers me is… “People need to stop overreacting about Kamala’s plan to reduce food inflation, as if it would lead to communism, mass starvation, and the end of America.
I worked in M&A in the food industry. Here’s a step-by-step summary of what would actually happen: 1. The government announces that grocery retailers aren’t allowed to raise prices. 2. Grocery stores, which operate on 1-2% net margins, can’t survive if their suppliers raise prices. So the government announces that food producers (Kraft Heinz, ConAgra, Tyson, Hormel, et. al.) also aren’t allowed to raise prices. 3. Not all grocery stores are created equal. Stores in lower-income areas make less money than those in higher-income areas, as the former disproportionately sell lower-margin prepackaged foods (“center of the store”) instead of higher-margin fresh products like meat (“perimeter of the store”). Because stores in lower-income areas aren’t able to cover overhead (remember, even if their wholesale costs are fixed, their labor, utilities, insurance, and other operating expenses aren’t fixed… yet), grocery chains start to shut them down. Food deserts in rural areas and in low-income urban areas alike become worse. 4. Meanwhile, margins for food producers are also quickly eroding. Their primary costs (ingredients, energy, and labor) aren’t fixed, and their shrinking gross profits leave less cash flow available to cover overhead, maintain facilities, and reinvest in additional production capacity. 5. Grocery chains, which have finite shelf space, start to repurpose their stores (those they didn’t have to shut down, I should say) to sell more non-price-controlled items—everything from nutrition supplements to kitchenware to apparel—and less price-controlled food products. Your local Kroger or Safeway starts to look and feel more like a Walmart. 6. Food producers stop making products with lower margins. Grocery chain start competing with each other to secure inventory. Since they can’t compete by offering stronger prices (remember, producers aren’t allowed to raise prices here, and, even if they could, grocery chains no longer have the gross profit to bear price increases), they compete on things like payment terms. 7. Small grocery chains start to shut down entirely, or get sold to larger chains like Kroger. In addition to not being able to cover fixed costs, a major reason for this is because they can no longer reliably secure delivery of products, due to producers prioritizing sales to larger customers, which are able to leverage their stronger balance sheets to offer superior payment terms. 8. Smaller food producers—which typically sell via distributors, rather than directly to grocery chains—start to go out of business. Because these producers have an additional step their value chains, and because they have lower volumes over which to spread their fixed costs, their cost structure is inherently disadvantaged compared to major food producers. When grocery stores aren’t able to raise prices, cutting product costs becomes all the more important, and deprioritizing purchases from smaller producers is an easy way to do so. 9. As supply chains break down, lines start to form outside grocery stores every morning. Cities assign police officers to patrol store parking lots, and food producers draft contingency plans to assign armed escorts to delivery trucks. 10. The federal government announces a program to issue block grants for states to purchase and operate shuttered grocery stores. The USDA also seizes closed-down production facilities. 11. The government announces that prices for all key food costs—corn, wheat, cattle, energy, etc.—are also now fixed, to stop “profiteers” from gouging the now-government-operated food industry. 12. Shockingly, the government struggles to operate one of the most complex industries on the planet. The entire food supply chain starts imploding. 12.5 Government can't manage the supply and demand, so they impose ration cards (in today's world, digital app). This controls what and amount you can purchase each month. Black markets open, where people begin to trade things they don't need for things they need or other things. 13. Communism, mass starvation, and the end of America quickly ensue. Hey wait a second”. ![]() ![]() ![]() As Milton Friedman said: consumers don’t cause inflation, producers don’t cause inflation. Government spending is what causes inflation. Last edited by Rockstar; 08-22-24 at 10:29 AM. |
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#9246 |
Lucky Jack
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If you watch CNN.
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“You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road |
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#9247 | |
Chief of the Boat
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A fair indicator of what possibly lies ahead?
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#9248 |
Shark above Space Chicken
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"However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie |
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#9249 |
Lucky Jack
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They all suck truth be told. Same talking heads day in, day out. Same narrative. Same BS.
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“You're painfully alive in a drugged and dying culture.” ― Richard Yates, Revolutionary Road |
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#9250 |
CINC Pacific Fleet
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If you are a Pro-Dem then CNN is your channel of choice.
If you are a Pro-Rep/Trump then Fox Is your channel of choice Don't know which type of people watch MSNBC Markus
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My little lovely female cat |
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#9251 | |
CINC Pacific Fleet
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Your reaction to this accusation ?
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Markus
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My little lovely female cat |
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#9252 | |
In the Brig
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#9253 | |
CINC Pacific Fleet
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Markus
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My little lovely female cat |
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#9254 | |
In the Brig
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It really has nothing to do with Trump. Articles like that are meant for one thing and that’s to sell the book. Last edited by Rockstar; 08-22-24 at 08:01 PM. |
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#9255 |
Shark above Space Chicken
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RFK Jr. is expected to drop out of the running and endorse Trump tomorrow. Hard to say if that's good, or bad, for Trump.
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"However vast the darkness, we must provide our own light." Stanley Kubrick "Tomorrow belongs to those who can hear it coming." David Bowie |
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