Tag: US economy

Photo by Joe WilcoxSep 9, 20227:42 pm

Not One Crisis, But Two

Two days ago, I looked upon something surprising inside the Grocery Outlet, located in San Diego neighborhood Talmadge: An empty display case for Mexican Coca-Cola. Shall we blame supply chain disruptions that every fear-mongering pundit has blabbered about for months? The beverage, sweetened with cane sugar instead of corn syrup, is popularly stocked by many grocery stores in this area of SoCal.

But far more unsettling is the price. Mexican Coke, sold in glass bottles, is perennially priced 99 cents. A buck sixty-nine puts inflation and rising food/beverage prices into piercing perspective. That’s a 70.7 percent increase, by the way. Yikes!

Photo by Joe WilcoxJun 10, 20229:12 pm

A Good Reason to Work From Home

At one of the pricer area filling stations, located where Fourth and Washington meet in San Diego’s Hillcrest neighborhood, the price of gasoline approaches mountaineering heights. Grab your gear and head for the summit of cash required to fill the tank. For context, rounding to the nearest buck, customers paid $6.60 per gallon on May 27, 2022 and $4.94 on Oct. 15, 2021 at this location.

On the same day as the Featured Image, June 8, 2022, at my University Heights-located Valero, I filled up a half-tank for 30 bucks at $6.09 a gallon around Noon. Lady driving an Acura in the queue before my car paid $69 and some change. When I drove past a few hours later, posted price had jumped to $6.16.

Photo by Joe WilcoxJun 4, 20229:55 pm

Yeah, But What About Diesel?

The price of gasoline is now above six bucks at my local Valero, which is one of the more affordable stations in this part of San Diego. Diesel is higher, and that’s a problem for truckers and the cost of transporting goods to retailers.

But there is another dimension that I hadn’t considered. Back home in Northern Maine, farmers are planting crops for autumn harvest. My dad reminded me that tractors and other equipment typically run on diesel. Higher costs transporting food is a bad situation, but the spike to grow food is far worse—especially if some smaller farms simply can’t afford to operate.

Photo by Joe WilcoxMay 27, 20229:13 pm

The More You Pay, The More You Will Pay

Funny the things you long for. On Oct. 15, 2021, I shared a photo showing the cost of gasoline as $4.94 a gallon (rounded up) at the Fourth and University Shell station in Hillcrest. Fast forward to today and you pay $6.60 per gallon (again, rounded up). That $1.66 more than the old price—high for the time—seems oh-so affordable now. By the way, cost is 33 percent more than before.

Several large hospitals surround the station, and I got to ask: Is this why medical services—like ambulance—cost so much in San Diego? Yeah, the question is facetious. That said, unless the arm is severed and shooting blood, wrap a tourniquet and drive yourself to Emergency—and hope none of the doctors and nurses treating you filled up at this Shell. Somebody has to pay, and that could be you. Yuck. Yuck.

Photo by Joe WilcoxApr 10, 202210:23 pm

Pop Goes Another Housing Bubble

The current housing bubble—and there absolutely is one—bears only modest resemblance to the previous catastrophe, which I warned about in a lengthy August 2005 analysis. Rising mortgage rates already are deflating the 2020’s-decade bubble, but the pop is unavoidable without fundamental changes in the actual market or the myths used to explain existing dynamics.

Since before anyone heard of SARS-CoV-2 (severe acute respiratory syndrome Coronavirus 2)/COVID-19, which economic and societal disruption super-inflated the housing bubble, I had warned about a dangerous trend that ignores common sense observation of national demographics: Among the two largest segments, Baby Boomers are dying off and Millennials aren’t having many kids. As population growth stalls, there will be less demand for housing because there will be fewer people to buy. Meaning: All the babbling about not enough inventory has set into motion an overbuilding frenzy that is sure to deflate home values in the not-so-distant future. Before pandemic lockdowns, I had thought within 10 years. I now expect less than five—if we’re lucky.

Photo by Joe WilcoxMar 21, 202210:48 pm

What is Inflation?

Everywhere you look, there are reports about rising inflation, which is presented as increases in prices of goods. As a longtime journalist with a reputation for making complex concepts simple and straightforward to understand, I must correct the glaring mistake made by the majority of news reports: Inflation and rising prices are not the same, although there is an undeniable relationship between the two.

Inflation isn’t prices going up but the value of money going down. Spending power decreases. The classic case is late-1923 Germany, when, because of hyperinflation, “a loaf of bread cost 140 billion marks. Workers were paid twice a day, and given half-hour breaks to rush to the shops with their satchels, suitcases, or wheelbarrow, to buy something, anything, before their paper money halved in value yet again” (source: “Loads of Money“, Economist).

Photo by Joe WilcoxMar 11, 20229:33 pm

Return to Nextdoor

I last quit Nextdoor on July 28, 2020, protesting the ridiculously ambiguous tenets of the so-called “Good Neighbor Pledge”. My account is now reactivated. Testing the limits of that pledge is one of my goals in what may be a temporary return. Why bother? You ask the right question.

Burgeoning crude oil per-barrel costs, surging inflation, rising prices on seemingly everything, the Russian-Ukraine war, and potentially devastating consequences (globally) from the West’s sanctions against Russia are precursors to economic crisis of frightening magnitude. S-o-o-o, my neighbors and I may have reason to buy and sell or barter items some time in the not-so-distant future.

Leica by Joe WilcoxMar 8, 202211:07 pm

The Difference Between Today and Yesterday

Gasoline prices continue their relentless rise here in San Diego. Regular unleaded now is $1 or more per gallon than on Feb. 24, 2022—when started Russia’s Ukrainian invasion. The Featured Image and companion compare changes over one day. The Arco is located at El Cajon Blvd and Texas Street, where North Park and University Heights meet.

But 30 cents a gallon more than yesterday, or the day before, isn’t the bigger difference. I awoke this morning to news alerts that Joseph Biden banned importation of Russian oil. Price to pump fuel is least of the problems. This sanction, on top of the others, leads to one conclusion, and a single consequence: The United States and Russia are unofficially at war. All that remains is declaration by one side or the other.

Photo by Joe WilcoxFeb 25, 20229:05 pm

The Price of Gas Rose 24 Cents Overnight!

Let me be the first to (sarcastically) thank the oligarchs—whether they be the Russian ruling class or one-percent of people holding the most wealth—for rushing to grub as much money as possible from we whom they regard as chattel. The invasion of Ukraine, and the West’s (ah-hum) finger-wagging recriminating sanctions, couldn’t possibly have disrupted the flow of oil yet. But why wait, when profits are to be had and war is a convenient excuse for puffing them.

Yesterday, regular, unleaded gasoline sold for $4.46 a gallon at all three of my San Diego neighborhood’s three economy filling stations. That’s cash price; credit costs more. As you can see from the Featured Image, price is now $4.70. That shocker greeted my wife and I this morning when we stopped to top off the tank.

Photo by Joe WilcoxOct 15, 20214:07 pm

Who Do We Blame for This?

You tell me. Because I really want to know.

I used iPhone 13 Pro to take the Featured Image, this afternoon in San Diego’s Hillcrest neighborhood. The gas station is located at Fourth and Washington. Vitals: f/2.8, ISO 32, 1/699 sec, 77mm; 1:18 p.m. PDT.

Photo by Joe WilcoxNov 25, 202011:14 pm

What a Sign Foreshadows

Across the country this Thanksgiving holiday, the dire circumstance is businesses closing forever because of SARS-CoV-2 (severe acute respiratory syndrome Coronavirus 2)—also known as COVID-19—local lockdown and stay-at-home orders that keep away customers and choke revenue. In this County, SanDiegoVille keeps a running list of restaurants and pubs permanently shuttered during 2020—the majority since the pandemic’s start. I count 109 entities, but more when accounting for establishments with multiple locations.

Many businesses that had reopened during the summer are closing again as states seek to combat rising Novel Coronavirus cases. For the record, the use of cases is grossly misleading; the numbers actually refer to positive tests, which doesn’t mean that someone is sick—and most likely not. Eighty percent (or more) of people contracting COVID-19 are asymptomatic or mildly ill. Regardless, restrictions are everywhere, placed by (hopefully) well-meaning governors.

Society by Joe WilcoxSep 22, 20099:15 am

Why the Dow is So High But Consumers are So Low

Yesterday, I warned that signs of economic recovery are nothing more than a mirage. Today, I’m freaking out because Robert Reich has got an explanation so simple and so obvious. If the former US Labor Secretary’s analysis is correct, as I believe it is, the economy’s in deeper doo doo than even my worst warnings about it.