The Price Is Right In A Panic Buy

in #money5 years ago

Hey Jessinvestors

As I mentioned in my post yesterday, the chase for cash is on and the quest for money is eventually used to chase goods and services. When panic sets in be it a war, be it a pandemic, be it civil unrest, be it a resource shortage people flock to stockpile goods. They think they will need to survive, and in doing so, they feel they are guaranteeing themselves a lower price than purchasing in the future. However, businesses aren't charities, and when consumer behaviour changes so do their strategies.

As the pressure mounts on fast-moving consumer goods, we see capital-driven into these spaces to keep supply chains moving and in doing so put further markups on products which are transferred to the consumer. This sees price inflation skyrocket for certain goods and services, while products and services are not deemed a necessary will have their market share eroded.

There was a time when luxury goods and services could absorb the knock-in demand or close certain stores to maintain their income relative to their expenditure. Still, in uncertain times like these, that kind of arrogance doesn't work, and many of them will either have to discount or go bust.

Image source: - quickmeme.com

Asset price plunge

When the focus is placed on a lower spectrum of human needs, the sectors on top of the pyramid will take a knock as capital cannot be bothered to flow up the needs hierarchy. This means asset prices will have to fall along with financed products. Car prices will have to fall; home prices will have to fall, education prices will have to fall, insurance premiums will have to fall as people don't deem these purchases necessary.

This will also have a knock-on effect as jobs in those sectors will be cut, and we will be sitting with workers that have skills that cannot be put to good use in places where it is now needed, such as necessaries. A car salesman isn't going to jump into agriculture, while it's not impossible; people have pigeon-holed themselves at their peril.

Financial to productive

I realise what I am saying sounds gloomy but it's far from the case, in fact, its a good thing. For many years the financial economy has grown without any restrictions, and we had no way of stopping it from stripping real production out of the economy in favour of its fake money-making.

The capital was hoarded and not put to work through various schemes, and now its time to reverse the trend. As wealth is stripped from assets and speculation and set to work, we can see better price discover, more money velocity and more decentralisation.

While it won't be pretty in terms of quality of life for many, it's like taking medicine; we should have been taking a long time ago. It will get to work, and you will only feel the effects at a later date, but you have to take it and allow yourself to recover even if it's bitter as hell.

Have your say

What do you good people of steem think? Is this the purge we need to build a healthier economy in the future?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

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Have a lovely weekend in the house dear...😉

Posted using Partiko Android

Had a good lunch and a solid workout so my days on point!

Challenging times like this make me glad I’m used to being diverse with my interests and skills. My primary career is still something that can be relied upon, whereas things I’m delving into as a hobby and potential career are important but not mandatory. They would still be more in demand than financial sectors though, so I’m grateful.

Have you made yourself a decent supply of slow perish foods like pasta and stuff? In case things get tough?

My career is all internet and while I don’t think that’s going away I could be wrong lol! If that’s the case I’ll have to learn to farm or some shit!

Yes I’ve picked up some canned goods and hygiene stuff, maybe I’ll pick up some more! But I’m also into the whole intermitted fasting thing and it’s going great so it really makes my food stock last

You’d be better off a mechanic or someone who would fix things. Those people are going to be in demand with all the snowflakes who can’t fix a damn thing!

I love intermittent fasting, I’ve been doing it for about 6 years now. It’s challenging to do it with a toddler when I’m at home but when I’m working, I can usually not eat until 12 or so, sometimes longer if I have meetings and crap. It’s a great lifestyle!

Lol yes mechanic and handyman shit is gold, I've got two cousins who are mechanics so I guess I'll have to ensure they stay alive and teach me, otherwise, I'm off to the bush going full hunter-gatherer and fishing

I agree man it been life-changing for me, I started with a 3 day fast to get things going and have been fasting every day now and eating clean and it's like I'm on another level, sharper, stronger ready for zombie apocalypse I feel like I could handle my own

As a Nurse at least my skills will remain in demand. But still without a car as I decided long ago as not worth owning a depreciating cash cow for the government.

Posted via Steemleo

Hows the public transport in your area? You can always try the second-hand car market and risk the maintenance cost but have reduced depreciating if you need a car to earn or improve your income potential

I'm a member of a car cooperative and share a car among neighbors as a non profit organization.
Used cars are still taxed, surcharged, and subject to a variety of fees that are really more taxes plus heavy taxes including Carbon taxes on gas.

Posted via Steemleo

You always blow my mind with all these added fees and taxes you have to pay, it makes me scared to live in a first-world country it feels like you getting punished for any sort of success you want to achieve. Kind of makes me glad to live here where people aren't able to be so strict due to their bumbling incompetence, but then again we do tend to run out of electricity regularly, so give and take I suppose

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