Exactly. Overlay that with the Fed's Balance sheet and you'll see something jump out right away!
Inflation at 53-year low as QE money printing rages unabated!
- Thread starter Ricter
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Exactly. Overlay that with the Fed's Balance sheet and you'll see something jump out right away!
Another good article showing what a sham the low inflation numbers are.
http://www.lewrockwell.com/2014/05/david-stockman/the-lowflation-myth/
The gov't leaves out anything that can't be adjusted by hedonics.
In a manner of speaking, they decide in advance what inflation number they want and need to help sell something, then they go about finding ways to get to that number.
http://www.lewrockwell.com/2014/05/david-stockman/the-lowflation-myth/
The gov't leaves out anything that can't be adjusted by hedonics.
In a manner of speaking, they decide in advance what inflation number they want and need to help sell something, then they go about finding ways to get to that number.
And even more on the "What Low-Flation?" meme....
What "Low-Flation"? Core CPI Jumps Most In 3 Years As Food Costs Push Higher
The Fed is losing its reasons for printing, leaving it desperate to revive the meme that the US economy is in self-sustaining recovery mode. At 2.0% Core CPI has caught up with the hot-flation of PPI removing the crutch of low-flation easement the Fed has been relying on. While Ex-Food-and-Energy is surging (well above expectations), the food index rose 0.5% in May after increasing 0.4% in each of the three previous months; and the index for food at home increased 0.7%, its largest increase since July 2011. This is all happening against a backdrop of real hourly wages dropping 0.1% YoY.
Does this look like the Fed has inflation concerns under control?
Driven by "Food at Home" costs soaring...
The bottom line is that The Fed just hit its inflation target (in fact it exceeded it) and along with reaching its employment target (which has now been changed), there are very few defensible arguments for them to stay so easy - aside from saving us all from a fate worse than death, falling asset prices...
What "Low-Flation"? Core CPI Jumps Most In 3 Years As Food Costs Push Higher
The Fed is losing its reasons for printing, leaving it desperate to revive the meme that the US economy is in self-sustaining recovery mode. At 2.0% Core CPI has caught up with the hot-flation of PPI removing the crutch of low-flation easement the Fed has been relying on. While Ex-Food-and-Energy is surging (well above expectations), the food index rose 0.5% in May after increasing 0.4% in each of the three previous months; and the index for food at home increased 0.7%, its largest increase since July 2011. This is all happening against a backdrop of real hourly wages dropping 0.1% YoY.
Does this look like the Fed has inflation concerns under control?
Driven by "Food at Home" costs soaring...
The bottom line is that The Fed just hit its inflation target (in fact it exceeded it) and along with reaching its employment target (which has now been changed), there are very few defensible arguments for them to stay so easy - aside from saving us all from a fate worse than death, falling asset prices...
I thought I posted that somewhere already. My apologies.
So what caused this surge in producer prices? Why food costs of course, which in April soared by 2.7%.
Well, that article didn't turn out to be very correct.
I knew that you'd post it, to be fair. ; )
I didn't realize that the charts didn't include it. I have a feeling your smiley is there to somehow insinuate that this data helps your "lowflation" cause. Not sure why you would think that, as the 12 month rolling number is still 2% vs. 2.1% last month (wow, what relief). Especially since the commentary was about the 2.1% in May vs. the 1.4% the prior month. It is THAT number which is important.
Now, if you see a drop in the monthly number for several months, then you've got a leg to stand on. However, with oil prices moving back above $106, I wouldn't hold your breath.
Of course, you could make a predictive statement now which I would be glad to throw in your face later if you like. Why break with tradition?