Dow Chemical’s Shocking Price Increases: Another 25%

Having just raised prices 20% across the board only a few weeks ago, Dow Chemical shocked Wall Street again today by announcing another 25% increase.

For those of you math challenged: that’s 45% in just two months.

That’s on ALL of their products.

They are also putting on big shipping surcharges of $300 on each truck transport and $600 for the rail.

And there isn’t any inflation?

Do people not understand that Dow Chemical, as the second largest chemical company in the world, makes products that go into thousands of products? If Dow is raising prices on those by 45%, what will producers do? They MUST raise their prices as well- to cover the difference.

Hence, inflation will rise. And rise quickly.

Make no mistake, even if the Fed were to raise this week (which they won’t)- it is already too late to stop inflation from growing. By the time the Fed begins to raise at the end of this year, inflation will be pervasive and destructive.

Too bad.

Because the Fed should have been better than this. The Fed should take a tour of chemical companies around the United States. They’d have a better view of the economy.

Housing cannot be saved and once the Fed starts raising interest rates, mortgage rates will go even higher - which will crush housing even more.

Saving housing is the least of the Fed’s worries now. The inflation genie is loose. How do they contain him?