The (hyper) Inflation Street Report

[bornfree2]

In this thread, for fun, lets get some anecdotal stories of the rising consumer prices/stock at your local level. Surely this trend will accelerate and we may find new friends in this forum within 1 or 2 years.

I will offer into the record the following tale.

- On Friday of this past weekend, I put I bought 1 gallon of gas at $4.79. When I was done pumping, the attendant was outside rising it to $4.89. I should have bought more!
- On Monday, im seeing $5.85! (not at the same place).
- Dozen eggs are $3.99. (up $1.25 since start of year)
- All fresh produce at .99 cent store is no longer .99 but 30-50% increase. I look for 'spoiled' marked down packages now
- Chicken on sale still occurs. I make sure to stock up on those and freeze them up

Being broke I have a very simple diet. When my precious dry beans go up beyond $1-$2 /lb or coffee is too much I will start to panic.

What price increases are you seeing in your area?

[bornfree2]

Shower thought: in a hyperinflation scenario, the BK filer will be in very difficult position.

Not only because they wont have income and money to keep up with rising costs and debt, but also because the property they do hold could have a phantom inflationary value that will increase the reporting on Schedule A/B.

In addition, the exemption amounts may not protect them because the new street value is much more. So that beater car that was worth $2000 is now worth $20000 beyond $3525. Everything falls into the happy lap of the Trustee.

"But the debt to creditors will be paid with hyperinflated dollars so its all good bro. Like they would just add zeros to the dollar bill and hey whammo $1 pays $1000 in debt!".

Lets be real. Dollars only come from borrowing (which banks wont do in hyperinflation), earning (businesses will lay off and certainly not increase salaries), or asset sales (which would be already sold off and at the whim of the market). Furthermore, banks would have lobbied hard to have their debts recalibrated first or be made whole before this bad financial theory comes true. Probably be called the Patriot Bankruptcy Reform Act

Then again, the debtor has ultimate power and just do a Michael Scott bankruptcy and give everyone the finger!

[bornfree2]

Gas station that was $5.85 on Monday 3-7-2022 is, two days later, this Wednesday morning 3-8-2022 $6.19!

In other news, Tesla/EV owners are laughing

[bornfree2]

More inflation = less insolvency = not eligible for bankruptcy!

We all see prices increasing. That means your saved or earned dollar is buying less, and interest rates makes your debts become more expensive to service. Soon your earned dollars cant pay for both your rising expenses and rising debts. Since food / roof is more important than Big Bad Bank's payments you must default.

You think bankruptcy will save you...but think again

One core test for bankruptcy is the balance sheet test. You list out all your property/assets and all your liabilities. You assign fair market value to the property/assets and you gather up numbers for your lender claims.

If you have more assets than liabilities you are solvent. If you have less assets than liabilities you are insolvent.

You need to be insolvent to succeed through the BK. You need to be insolvent on the balance sheet test.

But rapid inflation presents a problem. The 'fair market value' is distorted. Everyone is selling crap at higher prices to keep up with their bills. All that junk you have laying around is making you more and more solvent on the balance sheet. The value increases faster than the debt liability. Until you can no longer pass the insolvency test. You are too rich on the balance sheet yet dead broke in reality.

If you think this is far fetch, just remember the day when the entire world went bonkers in search for toilet paper. That happened in just a few days.

Things can become very unpredictable, very fast with inflation and the bankruptcy filing window may just slam shut on many debtors.

good powerpoint on bk insolvancy rules

https://www.lw.com/presentations/proving-contesting-debtor-insolvency-2012

[bornfree2]

Feed a Family for $5.55

Food prices in the U.S. are rising at the same time as many families are
struggling to make healthier choices. Eating out has contributed to an
obesity epidemic. Ironically, the economy’s turn south has resulted in a
positive development for public health: Fatty, sodium-laden restaurant
meals are becoming a luxury fewer people can afford.

Eating in can be both healthy and inexpensive. Clearpoint is pleased to
bring you some budget-saving supper solutions that are also quick and
wholesome. We’ll show you how to stretch your weekly grocery budget
using a little planning and organization.

https://www.clearpoint.org/docs/feed...y-for-5-55.pdf

Written only a few years ago, this guide attempted to showcase recipes and meals plans to feed a family for $5.55. Well that is no longer possible. Every item in this guide is already priced 50-300% more in my area. No way im finding dozen eggs for $1.42. Maybe I can find a can of beans for 0.79 but its probably going to be a smaller sized can.

But im used to living on nothing. Rice, pasta, beans, potatoes, some vegs, some fruits, and some meats. Ive lived off that for at least the past 4 years. Sure ive had times where i bought the store pizza and chips. As a result im in good health, strong immune system, and in fighting shape.

So maybe this inflation is the pendulum swing Americans need to detox themselves. Unfortunately I dont think they are psychologically ready to go without. I think they will continue to demand bailouts, stimulus checks, and demand it with violence. And the violence and disorder will lead to new lockdowns and tyrannical rule like we saw during Covid. Every empire sunsets.

[flashoflight]

Feed a Family for $5.55



https://www.clearpoint.org/docs/feed...y-for-5-55.pdf

Written only a few years ago, this guide attempted to showcase recipes and meals plans to feed a family for $5.55. Well that is no longer possible. Every item in this guide is already priced 50-300% more in my area. No way im finding dozen eggs for $1.42.

You and I are in California. I was able to find a dozen eggs for $0.79 in West Virginia two months ago because they don't have to be cage free unlike California eggs. My gut feeling is that half of the grocery items in WV were cheaper or much cheaper than in a California Walmart. Don't even think about stepping into a Vons or Safeway. The other half of grocery items had the exact same California prices especially on prepackaged frozen or refrigerated. Gas is now $4.35 there and they don't have high paying jobs, so they are hurting pretty bad paying California gas prices on WV wages.