Most of the people who read this will not remember the oil embargo of the Early 70’s when lines at the gas stations stretched for blocks on end.
What many who do remember will have forgotten is the increase in clothing prices. Why? Well at the time “polyester” was the “miracle” fabric of the day. In fact most synthetic fibers used in clothing are made from OIL. And as we all know Oil prices have increased dramatically.
According to today’s farm planting reports being released, farmers are going to plant less cotton this year. Cotton is the other significant component of clothing. Hence when the next harvest of cotton is made there will be higher prices. Higher because of the amount of cotton available… but also higher because of the demands moving from high priced “synthetics” to “lower priced” Cotton. But as I have already indicated Cotton will also cost more.
The lower value of the dollar around the world will also begin to have this effect on Clothing manufacturing and prices. While the price of labor is cheaper abroad generally, the exchange rate of the dollar for the foreign countries currency is declining against them and they will be forced to raise their prices to pay their people and to sustain profits.
That means it will cost more to buy clothing not just for yourself but for your children. That means a tighter budget and that dreaded word “Inflation”.
It is not just your clothing that will cost more. The cost of plastics has yet to be passed on completely to the consumer goods market. And all you have to do is look at that commercial showing everything disappearing because of no oil… now you just have to increase the price because the oil will be available but will cost more.
We have yet to see the real cost of this inflation from Oil Prices to Aluminum to Steel and Copper. These are commodities that have built our “modern” society and are critical to our society as we know it.
I am not trying to scare you about the future. I AM trying to warn those of you who care about the future and urge you to take appropriate steps to be prepared for these inevitable events as I do not see an easing of this anytime in the near future.