3 replies to this topic

[Douglas]

I'm not sure why or how, but government statisticians finally actually found some inflation this morning with their white canes in the PPI  report with a 1.3% MoM print vs. 0.4% forecast.  I suspect some low-on-the-totem pole new guy who hasn't been properly "trained" was permitted to crunch the numbers this month.  He'll probably be reassigned overseas to do the Afghanistan numbers as a reward.   If you're in need of some covid comic relief, you might want to tune into the FED's Rosengren and Kaplan's speeches later today to see how they try to explain away this burst of inflation.  If you take a shot of whisky each time they say transitory, I'm betting you will be completely blitzed by the end of their talks.  Maybe a tiny bit of inflation truth is a big enough black swan to finally provide a small market correction. 

 

Regards,

Douglas

[Bernie]

Some of the food companies announce increases in pricing, coming.

[slupert]

Every Bull market has an "inflation SCARE". Strong resistance ahead at 1.4 r so, I don't think we see 1.5 for several months (fall). If it does blow through 1.4, TIIIIIIIIIIIMMMMMMMMMMMMBERRRRRRRRRRRRRRRRRRRRRR. Bit i don't think so, and it doesn't mean a scary as hell shake out won't occur. (JMHO)

[pdx5]

Inflation is nearly impossible with factories in China, SE Asia & India running below capacity.

Inflation is caused primarily by shortage of goods and services to absorb the cash available.

There is no shortage of goods and services possible because of growth in Asia. There is plenty 

of cash available, but there is no shortage of goods. One can buy only so many TV's and Laptops,

and shoes and clothes. So now the excess cash is moving into stocks & real-estate.