US Producer Price Inflation Tumbles To Slowest In 3 Years
After consumer price inflation slowed faster than expected yesterday, all eyes are on the pipeline with producer price inflation expected to slow to just +0.4% YoY in June. Instead it fell further (+0.1% MoM), with PPI barely positive on a YoY basis (+0.1%)…
Source: Bloomberg
…
This appears to be further ‘good news’ for The Fed (and the bulls)… or is the deflationary pressure a signal of recession?
More…
Plugin by: PHP Freelancer
Yes, we are and getting worse with each passing day under the Marxist communist Stalinist Biden/Obama regime.
“We know that they are lying, they know that they are lying, they even know that we know they are lying, we also know that they know we know they are lying too, they of course know that we certainly know they know we know they are lying too as well, but they are still lying. In our country, the lie has become not just moral category, but the pillar industry of this country.”
― Aleksandr Solzhenitsyn
Just as that old saying about the tree kinds of lies:
The white lie
The dam lie
and Statistics.
They’ve so manipulated the statistics that even the idiots “in charge” are unsure what is the real deal on the ground.
Their echo chamber baffles the bullshitters, but we know how the price is UP, the services and size of purchased items is worse and our paychecks continue to shrink vis a vis real life costs of living.
Creator: Ernest Hemingway, U.S. author, winner of Nobel Prize in Literature
Context: The character Mike Campbell in the 1926 novel “The Sun Also Rises” was asked about his money troubles and responded with a vivid description embracing self-contradiction:[1]
“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
“What brought it on?”
“Friends,” said Mike. “I had a lot of friends. False friends. Then I had creditors, too. Probably had more creditors than anybody in England.”
Welcome to the slow to the SUDDENLY section of this credit ride. The USA Has way too many Creditors holding US Debt aka Treasury Bills.
According to the Federal Reserve and U.S. Department of the Treasury, foreign countries held a total of 7.4 trillion U.S. dollars in U.S. treasury securities as of April 2023.
Please welcome all these wayward dollars back HOME and Weimar Germany Hyperinflation 2.0.
According to the latest Lyn Alden newsletter (if you don’t get it, you should, and it’s free) there are two main sources of inflation: govt. spending like in the 1940s with WW2 and excessive lending like in the 1970s. The inflation we have now is much more akin to the 1940s than the 1970s having been caused by poor monetary policy and excessive QE (tripling the money supply in 2020). Per the report, raising interest rates in this type of inflation will likely produce early effects that make it seem like it is working, but this is due to secondary effects on economic activity. In the long term, however, the interest rates will result in inflationary spending (printing) in order to meet the debt service obligations. So, in short:
1) the Fed doesn’t know it’s ass from a hole in the ground, unless tanking the US economy is the real objective
2) The bastards that cause the problem by printing a bunch of money and handing it to their cronies at places like Blackrock are now trying to squeeze the little guy while simultaneously putting them out of work. This is nothing more than blatant wealth transfer, or even outright theft.
In either case, it’s criminal and should be treated as such, but don’t expect govt. to be a source of justice.
Two companies control everything right -- BlackRock and Vanguard. If they decide to raise prices at the commodity “producer” level -- everythingproduced by their corporate holdings becomes more expensive.
If producer price levels are dropping, why are prices still going up? Products on the shelf are still increasing in price.
Also, if the goods were purchased and put on the shelf at one price -- how is it honest for sellers (box and grocery stores) to then raise the price again on top of their original margin? (I saw this a few times at Ingles).
It’s the same rational we have talked about for years with gasoline. How does the pump price change when there’s a 90 day supply chain from the point of bulk purchase by the gas retailers? If the price per barrel for gasoline goes up, it should take effect at the pump in about 90 days… but they gouge us daily for gasoline and our worthless federal government does nothing.
We’ve been in a recession. We are allowing evil to lead us into destruction. If we don’t take it by force it will take us. Either we have the balls or we don’t. God help us.