Thursday, February 17, 2011

Now, Rising Fur Prices

Reports NyPo:

While soaring cotton prices sap profits across the clothing industry, luxury labels say a dramatic run-up in the price of mink and other fine furs has likewise forced them to scramble to maintain their margins as demand for furry fashions surges worldwide.
"People are ordering their fur earlier in the season than ever because they're afraid of what they'll have to pay if they wait until the following week," said Khajak Keledjian, CEO of Intermix, the trendy New York-based fashion boutique.
Notice the quote, "people are ordering their fur earlier". This is the first sign of future expected price inflation having an impact at the consumer level. It is the strongest evidence yet of a dramatic drop in the desire to hold cash balances.

The average price of some key varieties of mink has climbed as much as 20 percent during the past two months alone, according to data from a key global trading hub in Copenhagen, reports NyPo.

NyPo also reports there is strong demand from China, another sign that the Chinese are starting to spend some of the dollars they have earned in trade, rather than saving them. Chinese spending, alone, will lower the standard of living for Americans, but Ben Bernanke money printing will make it most difficult for those on fixed incomes.

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