Amazon Prime Day = DEFLATION

I saw this chart today and had to post this because this is what’s truly in store. Yes we know inflation is here, we know that the pain is at the pump, but in reality it is DEFLATION that will rule the day.

Well we are seeing the beginning of what will be continued inventory reduction repricing. Anyone who has gone through a business course and especially production/distribution/inventory analysis understands that inventory overhang is a bottom line absolute KILLER! Well let’s just look at this chart of what Amazon is “giving away.”

This is the reality and when a behemoth like this unleashes this kind of margin compression, well good luck to Best Buy and the rest of them. These developments are in a way good for consumerism but in the end we all know the old parable and how things end up going:

TO THOSE THAT HAVE EVERYTHING, EVERYTHING WILL BE GIVEN AND TO THOSE THAT HAVE NOTHING, EVERYTHING WILL BE TAKEN AWAY

This profound statement holds true in most systems and its a form of Pareto distribution and no matter how much human society tries to subvert reality, the natural order of things always prevails.

Bottom line, well there is no such thing as a free lunch, somebody pays and in the end a few win and many lose and much like the game of Monopoly teaches all of us and even on display of our fine $1 US Dollar, the eye of the pyramid (the few) are disconnected from the many!

E PLURIBUS UNUM

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