Wed 19 Sep 2007
Fed Decision Forces New Category at Get Rich Slick
Posted by RichSlick under Basket of Goods
[7] Comments
Who are the big winners with the Feds move yesterday? Borrowers. Who are the big losers? Savers. A few readers questioned my motive a month ago why I went to all my credit card companies and requested credit line increases in this post. I by no means foresaw the Fed cutting rates by 1/2 point but I did suspect the easy money would be flowing again which is why I wanted to get more juice that I could tap.
If you’re an avid reader of Get Rich Slick, you know I like to play it both ways. I’ll borrow heavily at 0% and invest that money into higher yield savings. Heck, I’ll borrow at 0% so I won’t have to pay even a low rate on a secured loan on a car!
So this Fed rate cut will be a boon for my extra curricular investment activities. Unfortunately, the Fed rate cuts and money dumping will mean inflation will spike higher which is why I’ve added a new category called “Basket of Goods” which I will use to periodically post the cost of a basket of goods at the grocery store to track real inflation.
Last night, I stopped at the grocery store to buy a “basket of goods” which included the following items:
Item | Unit Cost | Total Cost |
1 Dozen Eggs | $2.09 | $2.09 |
Horizon Milk – 1 Gallon | $5.99 | $5.99 |
16 oz Box Cereal | $2.39 | $2.39 |
1 Loaf of Bread | $2.19 | $2.19 |
12 oz Bacon Pkg | $2.68 | $2.68 |
Rib eye Steaks 2.32 lbs | $7.98/lb | $18.59 |
2.5 Gallon Ozarka Spring | $2.69 | $2.69 |
Total | $36.62 |
I’ll follow on December 18th with another basket of goods to see how much the cost have gone up.
September 19th, 2007 at 7:31 pm
That is a good idea. I think I will keep track of inflation as well.
$6 for a gallon of milk? Is there gold in there? I get mine for $3.50.
September 19th, 2007 at 7:45 pm
Kevin,
I would imagine you’re not buying real milk but some sort of hybrid hormone induced milk.
Real milk cost $6/gallon.
September 20th, 2007 at 2:52 am
Organic Milk will always be more expensive …
Not everyone is willing to pay that kinda moolah
September 20th, 2007 at 6:04 am
The irony of course is that in our past of say 100 years ago, all milk was organic. This was the real milk. Now organic milk is considered premium and industrialized milk is considered mainstream. See the irony?
September 20th, 2007 at 8:07 pm
True.
Anyway I don’t drink milk.
The ole case of lactose intolerance LOL
September 21st, 2007 at 12:18 pm
I was going to ask about the milk thing too! $3.29 or so here lol. I still don’t get why bread costs more than 40 cents a loaf 😉 it seems like such a simple commodity and yes I know wheat is going haywire now but the past 5-10 years I always wondered why it cost so much.
I would check your chicken prices as well – as inputs for chickens, cows, everything goes up – they are passing along heavy price increases in the end material (chicken breast for example) – I know you have eggs in there, but we need 2 meats in this study hah.
You might want to go visit a mid scale restaurant and jot down some menu items than check back in a year! Plus that is a pretty fun reason to go eat out 😉
September 24th, 2007 at 5:27 pm
Boom! Welcome to inflation America.