Bennie and CNBC keep spewing out the drivel about deflation and the numbers keep showing inflation. WTF!!!!
The MSM has barely reported that the PPI came in higher than expected and has been running between 4% and 6% for the last 8 months. The disinformation campaign to convince Americans that prices are not really going up continues. I got a letter from my beloved State of PA yesterday that the annual fee for my EZ Pass Transponder is being raised by 100%. No inflation here. Move along.
PRODUCER PRICE INDEXES – JULY 2010
The Producer Price Index for Finished Goods rose 0.2 percent in July, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. This advance followed a 0.5-percent decline in
June and a 0.3-percent decrease in May. At the earlier stages of processing, prices received by
manufacturers of intermediate goods moved down 0.4 percent in July and the crude goods index
rose 2.7 percent. On an unadjusted basis, prices for finished goods advanced 4.2 percent for the
12 months ended July 2010, their ninth consecutive 12-month increase. (See table A.)
| Month | Finished goods | Intermediate goods |
Crude goods |
||||
|---|---|---|---|---|---|---|---|
| Total | Foods | Energy | Except foods and energy |
Change in finished goods from 12 months ago (unadj.) |
|||
| 2009 | |||||||
| July | -1.2 | -1.3 | -4.5 | -0.1 | -6.9 | -0.5 | -3.3 |
| Aug. | 1.5 | 0.3 | 6.2 | 0.3 | -4.4 | 1.7 | 4.5 |
| Sept. | -0.5 | 0.0 | -1.8 | -0.1 | -4.9 | 0.0 | -2.2 |
| Oct. | 0.2 | 1.3 | 1.2 | -0.5 | -2.0 | 0.4 | 7.0 |
| Nov. | (r)1.5 | 0.7 | 5.2 | (r)0.4 | 2.2 | (r)1.1 | 4.2 |
| Dec. | 0.5 | 1.4 | 1.2 | 0.1 | 4.3 | 0.7 | 1.7 |
| 2010 | |||||||
| Jan. | 1.3 | 0.2 | 4.9 | 0.3 | 4.5 | 1.9 | 8.5 |
| Feb. | -0.5 | 0.4 | -2.9 | 0.1 | 4.2 | 0.0 | -2.5 |
| Mar.(1) | 0.8 | 2.4 | 1.2 | 0.1 | 5.9 | 0.7 | 1.9 |
| Apr.(1) | -0.1 | -0.2 | -0.5 | 0.2 | 5.5 | 0.7 | -0.8 |
| May | -0.3 | -0.6 | -1.5 | 0.2 | 5.3 | 0.4 | -2.8 |
| June | -0.5 | -2.2 | -0.5 | 0.1 | 2.8 | -0.9 | -2.4 |
| July | 0.2 | 0.7 | -0.9 | 0.3 | 4.2 | -0.4 | 2.7 |
| Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for March 2010 have been revised to reflect the availability of late reports and corrections by respondents. (r) Revised |
|||||||
Mike B says:
Well, if you were looking for signs of serious inflation, its not there…..I think you could consider those numbers propped up from stimulas spending as well. I see deflation in a lot of areas, home prices, apartment rents, automobiles, TVs, baseball tickets, airline fees, vacation packages, furnature outlets….
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17th August 2010 at 12:45 pm
Administrator says:
Mike B
To take my family of 5 to a Phillies game would cost me $250 if I got the “cheap” seats.
My Dad would take me to the Vet in 1975 and it would be .50 for kids general admission and $2.00 for an adult ticket. He’d feed me and get me a souvenior and the whole day would cost $10 to $15.
The Federal Reserve has done wonders in 35 years.
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17th August 2010 at 12:52 pm
Tampa Gold says:
Mike,
Defation is indeed occuring is some markets but that is only due to the fact that the velocity of money has overwhelmed the financial sector. Inflation is happening in consumables and services.
Given enough time, hyper-inflation will happen.
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17th August 2010 at 1:02 pm
King David says:
We are distracting ourselves with the Inflation vs. Deflation debate.
much akin to the Republican vs. Democrat debate.
The value of what you own will go down – like home value, value of dollars in your savings account, value of pension funds, societal integrity, morals etc. Exceptions are Gold and Oil.
ALSO
The value of what you buy will go up – like toothpaste, soap, groceries, gas, heating oil, meat, rice, wheat etc.
So it is Inflation for what you buy & deflation for what you own.
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17th August 2010 at 1:57 pm
Mike B says:
Baseball…….I bought a $30 dollar game packet that gives me 2 for 1 general admission tickets for all regular games. (except Yankee and Red Sox games…damn! ) so it costs me $30 to take me and my girl to the game. I also got 8 view tickets and. 2 box tickets. That’s the cheapest season in many years for me…….but……. were talking the Mariners……in the midst of thier 2nd disastrous season …..
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17th August 2010 at 2:23 pm
Kill Bill says:
here in texas they have signs on the botch tollway that says just keep going and they will send you a bill in the mail. [they take pictures of every license plate] so people dont have to buy the rfid tracking device.
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of course the media is making stuff up about the economy they know our economy is a fraud. if you removed all the subsidies and tax breaks from big oil gas would be around 11-15 dollars a gallon. like everything else in our socialist system, which morons deny and call ‘free market’ everyone helps pay for everyone elses fuel and just about everything else. enjoy that 1$ burger, its on me!
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17th August 2010 at 2:36 pm
Reverse Engineer says:
The problem you have with the deflation-inflation argument is that the definitons aren’t the same for different people. If you just look at prices on the consumer level you will get a skewed perspective. You have to look at the money supply in a credit based economy to get a global perspective on inflation and deflation.
The money supply is clearly decreasing here, because credit is not being issued and debt not accepted, at least not to the level it was a few years ago. Moreover, the extant credit already issued is deflating, simply because people and biznesses cannot pay up and are defaulting on their loans.
Prices on some commodities may increase, but unless and until there is wage inflation, you cannot have a hyper-inflationary spiral. If commodities get too expensive, people simply stop buying them. That is demand destruction. As money exits the “Main Street” economy, products will simply disappear off the shelves, because people do not have the money to buy the products.
Look for Hyper-Inflation only after Helicopter Ben starts distributing Free Money to J6P like he does to the TBTF Banks. Until the Toilet Paper actually gets into the Wheelbarrows of J6P, hyper inflation of commodity prices cannot happen.
RE
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17th August 2010 at 4:00 pm
KayGeeJay says:
Not to worry, I’m getting 6 percent on my savings.
No. Wait! Is that a decimal point?
0.6% you say!!!
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17th August 2010 at 5:35 pm
Kill Bill says:
A JPMorgan Chase (JPM) study of a Walmart Supercenter in Virginia found that the world’s largest retailer has raised prices by nearly 6% on average over the past six weeks, according to the New York Post. Reuters says it was the biggest sequential increase since JPMorgan started the study in January 2009.
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17th August 2010 at 8:24 pm
Novista says:
RE
So … you’re saying food is now a discretionary item?
How’s that Zimbabwe experiment going for you???
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17th August 2010 at 8:10 am