1 reply to this topic

[4caster]

As you know, this morning it was reported that the PPI fell by 0.1% in Dec. The bullish stance

is that this is more proof that the rate of inflation is declining. However, I submit that the report

shows that wholesalers have gotten to the point where they're have trouble passing on their

costs to their customers. I think this will result in companies reporting later on this year that

they're having problems with their profit margins. Also, the ITBMNYA started falling on Dec. 29th

and is still falling. It declined earlier this week when the mkt went up and it's pretty unusual for the

ITBM to put in negative divergence.

[pdx5]

Problem is government UNDERSTATES real inflation. Most stuff I buy is up closer to 30-50% up in 3 years.

Very few workers and none of the retired folks have received 30% raises in 3 years. Even if some have, it is fully TAXABLE raise. So actual money available to spend is less based on their tax brackets. But consumers are using credit cards with abandon. Interesting times are ahead.

Edited by pdx5, 12 January 2024 - 12:10 PM.