The news just gets better and better. Unemployment claims are surging. Don’t believe the bullshit about the hurricane. The four week average is rising rapidly. These figures confirm that we are in recession. Another 49,000 fell of the 99 week train. That is now 1.3 million people in the last year. I’m guessing the local Social Security offices will be flooded with new SSDI applications this week.
Nothing like less jobs combined with soaring inflation. The producer price index soared by 1.7% last month. That is an annualized rate of 20%. But don’t you worry. It only went up due to food and energy. You certainly don’t eat or use gasoline. The gas station near my house posted regular unleaded at $4.06 this morning – up 12 cents in 3 days. The food price increases will be even worse over the coming months due to the drought and higher energy costs. But Ben says inflation is well contained. It’s well contained in your wallet.
I believe they call current conditions – STAGFLATION.
And at 12:30 today Ben Bernanke will throw some gasoline on the inflation fire with some QE3. It just gets better and better for the average American.
Weekly U.S. jobless claims climb 15,000 to 382,000
WASHINGTON (MarketWatch) – Applications for U.S. jobless benefits jumped by 15,000 to a seasonally adjusted 382,000 in the week ended Sept. 8,, with about half the increase related to tropical storm Isaac, the Labor Department said Thursday. That’s the highest level of claims since mid-July. The government said about 9,000 claims stemmed from the storm that passed through the Gulf Coast in late August. Some people could not work because of storm damage, but they did not apply for benefits right away. Economists surveyed by MarketWatch expected claims to rise to 370,000. Initial claims from two weeks ago were revised up to 367,000 from an original reading of 365,000, based on more complete data collected at the state level. The average of new claims over the past month, meanwhile, rose by 3,250 to 375,000, also the highest level since mid-July. The four-week average reduces seasonal volatility in the weekly data and is seen as a more accurate barometer of labor-market trends. Also, Labor said continuing claims decreased by 49,000 to a seasonally adjusted 3.28 million in the week ended Sept. 1. Continuing claims reflect the number of people already receiving regular unemployment insurance. About 5.39 million people received some kind of state or federal benefit in the week ended Aug. 25, down 78,465 from the prior week. Total claims are reported with a two-week lag.
U.S. producer prices increase 1.7% in August
WASHINGTON (MarketWatch) – U.S. wholesale prices jumped a seasonally adjusted 1.7% in August, mainly because of higher fuel prices, the Labor Department said Thursday. Excluding the volatile categories of food and energy, so-called core wholesale prices rose a much smaller 0.2%. Economists surveyed by MarketWatch had predicted a 1.5% increase in the overall producer price index and a 0.2% rise in core PPI. The energy index surged 6.4%, led by a 13.6% increase in gasoline and an 11.9% rise in natural gas. The wholesale cost of food, meanwhile, rose a sharp 0.9%, as the price of eggs and dairy went up. Over the past year wholesale prices have risen an unadjusted 2.0%, or 2.5% at the core level.