Prices continue to rise

[Trell]

Crown Prince of Bahrain Announces $17 Billion in U.S. Investments During Meeting with Trump

Crown Prince of Bahrain Announces $17 Billion in U.S. Investments

Crown Prince and Prime Minister Salman bin Hamad Al Khalifa announced that Bahraini companies are investing $17 billion in the United States.

www.breitbart.com

One more example of the record pace at which foreign investment is coming into the USA.

It's more like a bribe than an investment from one corrupt authoritarian to another corrupt authoritarian that is also a convicted felon and a rapist.

As for investments one should look at the bond market, and after the Trump "Liberation Day" it had the signs of a potential financial crisis: The market yield for 10-year Treasuries went up while the dollar fell. This is capital flight.

>>>
Yesterday [Jun 02, 2025] the Financial Times had a neat chart showing that there used to be a clear relationship between U.S. interest rates and the international value of the dollar. Actually, the chart was a bit too neat: When I set out to reproduce it, I found that the FT chose a time period during which the relationship looked especially clear. Still, it used to be true that when U.S. interest rates rose, so did the dollar, because higher yields pulled in foreign capital. But since Donald Trump returned to power, that relationship has broken down. Instead, we’ve seen a combination of rising interest rates and a falling dollar:

As many have noted, what we’ve been seeing in recent months, with interest rates and the dollar moving in opposite directions, doesn’t look like what we normally see in the United States, or for that matter advanced nations in general. Instead, it’s the kind of thing one sees in emerging markets, where big market moves often reflect crises of confidence: International investors lose faith, pulling their money out, and capital flight causes both a falling currency and rising interest rates.

Here, for example, is what Mexico looked like during the “tequila crisis” of 1994-5, which involved both soaring interest rates and a plunging peso:

<<<

We Are No Longer a Serious Country

And the world is starting to notice

paulkrugman.substack.com

 

[AcuDefTechGuy]

I don't like price increases either! The price of the woofers in my DIY system went up 40% last October. Should I blame Biden for that increase? Some rational thought should prevail.

When I talked to the reps from Epson, B&W, Marantz/Denon, they blamed it on the tariffs for the price increase.

Do you think that’s just an easy excuse (since everyone seems to be using it) and that it’s really caused by inflation and other causes?

A projector cost increase from $6,700 to $11,000 in a few months is ridiculous. And to think that Epson did this because they are just using the tariffs excuse?

 

[AcuDefTechGuy]

It will get much worse. I'm beginning to suspect it's the whole point...

Worse than a price increase from $6,700 to $11,000 in a few months?

I hope not.

 

[PaulBe]

When I talked to the reps from Epson and Sound United, they blamed it on the tariffs for the price increase.

Do you think that’s just an easy excuse (since everyone seems to be saying it) and that it’s really just inflation or other causes?

Your projector went from $6.7K to $11K. The tariffs are on the import prices. I'd say there are multiple reasons. That's a stiff increase. Flat screen TVs are still coming down in price. An equivalent mini-LED flat screen to the one I bought 3 years ago is $800 less today than it was 3 years ago - from $3K to $2.2K. I was at the store on Monday this week.

The AV10 went from $7K to $8K. It had been the same price for 2 years.

There are excuses And reasons. A manufacturer or rep will use what is useful to them as stated reasons.

I read that car prices are decreasing. Are they decreasing?

About 4 years ago, I concluded that prices on lots of things were going to go crazy - long before Trump and tariffs. I planned ahead as much as I could. Plans aren't perfect. You can't always get what you want... and you know the rest...

 

[PaulBe]

It's more like a bribe than an investment from one corrupt authoritarian to another corrupt authoritarian that is also a convicted felon and a rapist.

As for investments one should look at the bond market, and after the Trump "Liberation Day" it had the signs of a potential financial crisis: The market yield for 10-year Treasuries went up while the dollar fell. This is capital flight.

>>>
Yesterday [Jun 02, 2025] the Financial Times had a neat chart showing that there used to be a clear relationship between U.S. interest rates and the international value of the dollar. Actually, the chart was a bit too neat: When I set out to reproduce it, I found that the FT chose a time period during which the relationship looked especially clear. Still, it used to be true that when U.S. interest rates rose, so did the dollar, because higher yields pulled in foreign capital. But since Donald Trump returned to power, that relationship has broken down. Instead, we’ve seen a combination of rising interest rates and a falling dollar:

View attachment 74121

As many have noted, what we’ve been seeing in recent months, with interest rates and the dollar moving in opposite directions, doesn’t look like what we normally see in the United States, or for that matter advanced nations in general. Instead, it’s the kind of thing one sees in emerging markets, where big market moves often reflect crises of confidence: International investors lose faith, pulling their money out, and capital flight causes both a falling currency and rising interest rates.

Here, for example, is what Mexico looked like during the “tequila crisis” of 1994-5, which involved both soaring interest rates and a plunging peso:

View attachment 74122
<<<

We Are No Longer a Serious Country

And the world is starting to notice

paulkrugman.substack.com

Thank you. I saved both Krugman links and will slow read them over the next couple of days.

 

[BoredSysAdmin]

Worse than a price increase from $6,700 to $11,000 in a few months?

I hope not.

I wasn't referring to these price hikes, but in general. I see every day a new attack on science, education, health, Technology, and liberties. I estimate his first term took us backward about 10-15 years. About 5 years of that we were able to claw back (barely) just to throw us back another 10 years, and it's just been 6.5 months...
Compared to all that price of high end a/v equipment is not on my priority list. I really do hope I'm proven wrong.

 

[AcuDefTechGuy]

Your printer went from $6.7K to $11K. The tariffs are on the import prices. I'd say there are multiple reasons. That's a stiff increase.

The AV10 went from $7K to $8K. It had been the same price for 2 years.

There are excuses And reasons. A manufacturer or rep will use what is useful to them as stated reasons.

I read that car prices are decreasing. Are they decreasing?

About 4 years ago, I concluded that prices on lots of things were going to go crazy - long before Trump and tariffs. I planned as much as I could. Plans aren't perfect. You can't always get what you want - and you know the rest...

The Epson EB-PU1006W is a Projector, not a printer.

https://www.bhphotovideo.com/c/product/1671256-REG/epson_v11ha35920_eb_pu1006w_6_000_lumen_wuxga_laser.html

Yeah the Marantz AV10 went from $7K to $8K.

The Epson LS12000 Projector went from $5K to $6K.

Definitely huge increases.

So maybe it’s a mix of tariffs + inflation since everything is costing more and more every year.

Oh, what was your PLAN in anticipation of all the inflation/price increase?

Buy the AV10 when it was $7K before it went to $8K?

 

[PaulBe]

The Epson EB-PU1006W is a Projector, not a printer.

https://www.bhphotovideo.com/c/product/1671256-REG/epson_v11ha35920_eb_pu1006w_6_000_lumen_wuxga_laser.html

Yeah the Marantz AV10 went from $7K to $8K.

The Epson LS12000 Projector went from $5K to $6K.

Definitely huge increases.

So maybe it’s a mix of tariffs + inflation since everything is costing more and more every year.

Oh, what was your PLAN in anticipation of all the inflation/price increase?

Buy the AV10 when it was $7K before it went to $8K?

I edited my post. Oops on the projector vs printer. Bought the AV10 in December of 2024 when it was $7K. Got a small discount - I feel blessed.

My plan in anticipation of SHTF was pay all my bills, finish my HT project as fast as I could, save some more for emergencies. I'm bill free, and I did OK with the rest. I depend on God for His blessings, and for His care with the unknown.

 

[TLS Guy]

When I talked to the reps from Epson, B&W, Marantz/Denon, they blamed it on the tariffs for the price increase.

Do you think that’s just an easy excuse (since everyone seems to be using it) and that it’s really caused by inflation and other causes?

A projector cost increase from $6,700 to $11,000 in a few months is ridiculous. And to think that Epson did this because they are just using the tariffs excuse?

It all depends on how leveraged those on the supply chain are. Sound United and Masimo are highly leveraged currently. So, if you buy a unit for $100.00 from a manufacturer on whom the tariff is 30% and it weighs 25 lb. Say it weighs 25 lb which is 11 kilos. Freight cost from Asia is $5.00 per kilo. So freight is $55.

Now as soon as it is offloaded it goes to a bonded warehouse and the tariff has to be paid before it is released. This is paid by the importer Sound United. So now the cost is $185.00. Now we add a fee for the customs broker, so lets make it a round $200.00.

Now Sound United will want at least a 40% markup, so we are now are at $360. The dealer will want at least a 40% markup and that is conservative. So we are now at $504.00 for a unit that was bought for $100 from the manufacturer. I think those margins are on the conservative side for what are considered luxury goods. So that 30% tariff to release the unit from the bonded warehouse really adds up.

 

[mono-bloc]

What can you expect with that lunatic Trump

This is the result of a non-compulsory voting system.

 

[Trell]

This is the result of a non-compulsory voting system.

You've claimed that before without evidence, so do you have any actual research showing that in a democracy compulsory voting will stop an authoritarian from being elected?

 

[Trell]

When I talked to the reps from Epson, B&W, Marantz/Denon, they blamed it on the tariffs for the price increase.

Do you think that’s just an easy excuse (since everyone seems to be using it) and that it’s really caused by inflation and other causes?

A projector cost increase from $6,700 to $11,000 in a few months is ridiculous. And to think that Epson did this because they are just using the tariffs excuse?

It would for sure not surprise me if they increased the price more than the tariffs increase, but the tariffs is likely the major portion of the price increase.

>>>Yesterday’s [July 16, 2025] CPI report looked fairly tame on the surface, but if you look at the details it showed clear signs that Trump’s tariffs are starting to drive up prices. And private surveys suggest that there’s a lot more inflation in the pipeline. For example, look at S&P Global’s Purchasing Managers’ Index for manufacturing, which shows the percentage of firms reporting higher prices. A higher number almost always points to higher official inflation ahead, and right now it’s definitely telling us that tariffs are about to hit hard:

Why aren’t we seeing the full effects of the tariffs in official statistics? For the record, I don’t believe Trump officials are cooking the books — yet.

That’s not to say that they won’t at some point, and there’s a good chance that they will. But so far what we’re probably seeing is a combination of ordinary lags and the temporary effects of the TACO (Trump always chickens out) narrative. Buyers get pissed off at sellers when prices rise, so sellers who don’t want to lose market share have an incentive to hold prices down despite higher costs if they think the Trump tariffs will come back down in a few weeks.

I, however, am a TACO skeptic. I think Trump really is a Tariff Man who will keep us at Smoot-Hawley-level tariffs indefinitely, and businesses will eventually realize that and raise prices accordingly. ...<<<

Hawks, Doves and Lapdogs

The next Fed chair will be an obedient partisan

paulkrugman.substack.com

 

[Mikado463]

When I talked to the reps from Epson, B&W, Marantz/Denon, they blamed it on the tariffs for the price increase.

Do you think that’s just an easy excuse (since everyone seems to be using it) and that it’s really caused by inflation and other causes?

A projector cost increase from $6,700 to $11,000 in a few months is ridiculous. And to think that Epson did this because they are just using the tariffs excuse?

'greedflation' , it masquerades about in times like this............

 

[AcuDefTechGuy]

RBH have not increased their prices.

Just heard from one Yamaha rep that they are releasing new AVR models in the next 3 months.

Will see if or how much Yamaha will increase their prices.

 

[TLS Guy]

RBH have not increased their prices.

Just heard from one Yamaha rep that they are releasing new AVR models in the next 3 months.

Will see if or how much Yamaha will increase their prices.

RBH manufacture their products In Utah USA. So, that puts them in a better position.

Yamaha are a big corporation and I have no idea what their debt situation is. They make much more than speakers and receivers, and have a huge world wide base.

Sound United we know is highly leveraged. Their purchase by Harmon will not get approval for another six months at the earliest. They are also dependent on sellers like Crutchfield which is a private company and you can bet leveraged to some, and probably a significant extent.

So, what are they going to do with the tariffs? They will certainly pass them on plus markups. In addition these tariffs will be inflationary, no matter what nonsense Trump spouts. This will increase interest rates most likely because they are inflationary. If interest rates don't rise, then inflation could be catastrophic.

The other factor is going to be uncertainty about the economy, and these tariffs are likely going to cause a slow down, and so most businesses will be inclined to pad margins to reduce debt.

In other words a 30% tariff will likely increase prices a lot more than 30%.

 

[Mikado463]

Also noticed as of late more and more restaurants are imposing 3% surcharge when using a credit card. Everybody's getting in on the act !

 

[AcuDefTechGuy]

Also noticed as of late more and more restaurants are imposing 3% surcharge when using a credit card. Everybody's getting in on the act !

I have not noticed that. So how else do the restaurants want you to pay them? Cash?

 

[BoredSysAdmin]

Also noticed as of late more and more restaurants are imposing 3% surcharge when using a credit card. Everybody's getting in on the act !

Nothing to do with tariffs. 2-3% is what credit companies charge biz for the service of allowing customers to use CCs. In the past, it was forbidden to pass these charges to customers, but more recently the both laws and business-friendly (or anti-consumer) government emboldened businesses to pass these charges to customers. I see it very often now. Starting from even gas stations, listing different prices for CC or Cash.

 

[Mikado463]

Nothing to do with tariffs.

I never said it was, the title of this thread is 'Price Increases'

2-3% is what credit companies charge biz for the service of allowing customers to use CCs. In the past, it was forbidden to pass these charges to customers, but more recently the both laws and business-friendly (or anti-consumer) government emboldened businesses to pass these charges to customers. I see it very often now.

It was and is 'the cost of doing business', IMO. While I was with the family this past April in Seattle it took me 3 coffee shops to find one that would take cash, fly on plane, CC only.

Regardless, if a restaurant charges me 3% surcharge the tip will no longer go past 20%

Starting from even gas stations, listing different prices for CC or Cash.

I know, not in my area yet but saw quite a bit down South this past March

 

[j_garcia]

Also noticed as of late more and more restaurants are imposing 3% surcharge when using a credit card. Everybody's getting in on the act !

Many small, local restaurants here already did that, as the cost to them vs. a chain is out of their pocket. Plus, if you tip via ETF in Ca., it is taxed vs. cash.