• Sprott Money
    04/29/2016 - 05:58
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You Wanted Inflation, You Got It: Japanese Gasoline Price Rises To Eight Month High

Tyler Durden's picture


When one thinks of open-ended, "inflation targeting" one usually thinks of soaring markets, at least in nominal terms, exploding central bank balance sheet, and happy central planners. What one usually does not think of, is, well, inflation targeting. Because while the shadow banking financial system, perfectly devoid of deposits, has for now provided a sufficient buffer from trillions of reserve injections from spreading into the broader economy of the US and Europe, and has primarily impacted stock markets as unsterilized liquidity injections are used by banks to bid stocks, Japan has been far less lucky in this regard. As it turns out, the massive slide in the Japanese Yen in the past 2 months on nothing but ongoing promises of open-ended action, something Europe has perfected, and the US most recently enacted, may have already achieved its goal of pushing inflation. only not to the desired 2% level, but about 50% higher. Luckily, it is for such trivial things that nobody really every needs, such as fuel and consumer products - just ask the BLS.

As the Nikkei reports "the average price of regular gasoline rose to an eight-month high of 150 yen per liter on Tuesday, up 1.2 yen from a week earlier, according to data released on Thursday by the Agency for Natural Resources and Energy. The price has climbed 4.5 yen, or 3%, since late November, when the yen's downswing started. The dollar-based price of crude oil has remained steady since November, but the yen's slide by about 10 yen to the dollar has resulted in higher import prices."

It gets better

The price of kerosene rose to a nine-month peak. Growing demand due to a cold spell have pushed the price of the fuel up more sharply than other petroleum products.


External hard-disk drives are selling at higher prices at volume electronics retailers, partly because key imported components are paid for with dollars. The average price shot up 540 yen from a week earlier to 8,580 yen, according to research firm BCN Inc.


At Rakuten Inc.'s (4755) online mall, one of the most popular Roomba robotic vacuum cleaners sells for around 29,000 yen. The price of the U.S. product could exceed 30,000 yen after the current inventory runs out in the spring, said a company official.

And that old barbarous relic just hit an all time high:

The domestic retail price for gold hit a 32-year high earlier this month. "Jewelry prices are closely linked to those precious metals, so price hikes will likely spread," said an official at F&A Aqua Holdings Inc.

The Nikkei's conclusion: "Households are beginning to feel pinched by the weaker Japanese

Well, the Japanese people wanted Abe, and his inflation targeting policies. They got what they wanted: at least the endless jawboning part that is. We have yet to see just how the BOJ will implement the action that is supposed to back the surge in the USDJPY by over 1000 pips in two months. And now, they also have the surging prices to show for it.

And once the full impact of the spillover from unlimited monetization in the country with the JPY1 quadrillion in debt spill over, look for the prices of all goods and services to explode.

But at least Japanese exports will surge. Oh wait, that would assume that the nationalistic Abe government smoothes tensions with China, something it has not only not done, but exacerabted drastically in the past month or so.

We wonder how long the Japanese people will last until they say enough with this inflationary experiment, and kick Abe out on hopes of a prompt return to deflation.

Perhaps someone far smarter than the MIT and Princeton educated central planners conceived the saying that one should be careful what one wishes for...

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Thu, 01/17/2013 - 17:04 | 3163800 Ying-Yang
Ying-Yang's picture

"the Japanese people wanted Abe"

I dunno about you but Shinzo Abe sounds so Lincoln to me.

Thu, 01/17/2013 - 17:21 | 3163887 Silver Bug
Silver Bug's picture

And this is just the beginning. Inflation will be going much much higher.



Thu, 01/17/2013 - 17:24 | 3163903 pemdas
pemdas's picture

 H.L. Mencken said it best: "Democracy is the theory that the common people know what they want and deserve to get it good and hard."

Thu, 01/17/2013 - 19:17 | 3164328 San Diego Gold Bug
San Diego Gold Bug's picture

Big news today.......How does the SLV add silver when the US Mint has to suspend sales of silver Eagles??? I am a dealer and this is the email I recieved from the mint.  Notice the "allocation process" when they do start taking orders again.  The demand will far exceed the supply and none of the dealers will get the quantities they need.  Price spike is near. Premiums up 1% plus already at the big dealers.  Now that is inflation!!

The US Mint has run out of silver eagles and has suspended sales.  They may begin allocating coins the week of January 28th.


Please see a copy of the email we received today from the US Mint:


“Authorized Purchasers,


The United States Mint has temporarily sold out of 2013 American Eagle Silver Bullion coins.  As a result, sales are suspended until we can build up an inventory of these coins.  Sales will resume on or about the week of January 28, 2013, via the allocation process.


Please feel free to call us if you have any questions.




Jack A. Szczerban

Branch Chief, Precious Metals Group

Department of the Treasury

United States Mint”

Thu, 01/17/2013 - 17:01 | 3163808 francis_sawyer
francis_sawyer's picture

Gasorine Infration bitchez!

Thu, 01/17/2013 - 19:01 | 3164273 sotto
sotto's picture

Thanks central banker counterfieters, what would we do without you?  Oh, how about this:  http://economiccollapsenews.com/2013/01/04/10-economic-fallacies-that-ha...

Thu, 01/17/2013 - 17:02 | 3163809 LawsofPhysics
LawsofPhysics's picture

remind me, what provoked Japan into engaging in WWII again?  Something very familiar about this.

Thu, 01/17/2013 - 23:17 | 3164264 earleflorida
earleflorida's picture

correction:  the alaskan pipeline did at one [more than once] time help japan & s. korea's energy needs... while a good % was used for U.S. military aviation fuel. lots has happen'd over the years [sometimes, i do... get my decades mess'd-up'd?]... as of 2012 only 780k bpd are produced from the ~2mln +/+ bpd in the beginning. the three primary companys today are: B.P; Exxon-Mobil; ConocoPhillips. again,... who really knows?!, or who cares as long as alaska & alaskan residents get their stipend.   

Thu, 01/17/2013 - 17:02 | 3163810 John Law Lives
John Law Lives's picture

The solution is simple.  Tell the Japanese to model their CPI calculation after ours which conveniently excludes food and energy prices.  Problem solved.  No inflation.


Thu, 01/17/2013 - 18:47 | 3164227 Matt
Matt's picture

You misunderstand. They WANT inflation. It was part of the election campaign promises, I think. They should have asked for growth, rather than inflation.

Thu, 01/17/2013 - 18:56 | 3164256 John Law Lives
John Law Lives's picture

The Great Chairsatan WANTS inflation, but he hides behind the CPI calculation to obfuscate the severity of it.  That was my point.

Thu, 01/17/2013 - 19:18 | 3164336 yogibear
yogibear's picture

Soon the CPI  will only use iPODs (William Dudley model of the NY Fed) to measure inflation.

Thu, 01/17/2013 - 17:03 | 3163819 hedgeless_horseman
hedgeless_horseman's picture



Today, at the grocery story, frozen rabbit is $8.99 per pound, roughly 4 pounds each, or $36.00 per rabbit. 

WHat to do?

In our backyard rabbit hutch, we have two does, each with 10 bunnies.  Theoretically, these 20 bunnies are worth $720, once grown and butchered.  That is more than five shares of GS!

A 50-pound bag of rabbit pellets is $15, and you would need between zero and twenty bags, depending on your exact setup, the amount of kitchen scraps you produce, and the weather, in order to feed the bunnies, does, and buck for six months until the bunnies are ready for the dinner table.  "Lettuce" estimate $170 in feed costs to grow up 20 rabbits.

Thankfully, child labor laws do not apply when it is one's own children, so the cost of labor to raise and butcher the bunnies approaches $0.  Not counting the sunk costs of the rabbit hutch, now fully depreciated, even a feed cost of $8.50 per bunny is still only 25% of the retail cost of $36.00, or $2.12 per pound of fresh, lean, drug-free, homegrown rabbit meat. 


Thu, 01/17/2013 - 17:05 | 3163828 LawsofPhysics
LawsofPhysics's picture

My goats serve the same purpose, and many more (cheese, milk, etc.)

Thu, 01/17/2013 - 17:18 | 3163865 akak
akak's picture

Stop it, you've got AnAnonymous salivating!


So many roadside burgers, so few buns ....

Thu, 01/17/2013 - 17:33 | 3163932 BKbroiler
BKbroiler's picture

Rabbit is such good meat.  Hedge, try cooking them in white wine and rosemary, classic recipe. 

Thu, 01/17/2013 - 17:41 | 3163966 hedgeless_horseman
hedgeless_horseman's picture



White wine, rosemary, and fresh cream...


Anyone can grow his or her own food, even a little, and fuck the central bankers. 

Thu, 01/17/2013 - 17:41 | 3163969 BKbroiler
BKbroiler's picture


Thu, 01/17/2013 - 18:05 | 3164005 hedgeless_horseman
hedgeless_horseman's picture




...loin of rabbit with wild rice and candied carrots is one of my favorite meals.


  • How much is a pound of bacon at Wal-Mart, and where did it come from? 
  • What is the price of an Arby's roast beef sandwich, and how was it prepared?
  • What, exactly, is in that chicken nugget you are feeding your kid?

As food producers grapple with inflation, these are question to which we all want to learn the answers...or maybe not.

Watch the movie, Food, Inc.

Thu, 01/17/2013 - 19:27 | 3164355 ilion
ilion's picture

I got to tell you one thing, you know the shit, man! Super cooking!

Thu, 01/17/2013 - 20:41 | 3164649 MaxMax
MaxMax's picture

That looks good.  I wonder if the wild rabbits that I see in backyard everyday would tast as good?  Free range rabbit?  Grass fed rabbit?  No hormones? 

Thu, 01/17/2013 - 23:42 | 3165147 dunce
dunce's picture

You must be very careful with wild rabbits as they sometimes are plague carriers, at least in the southwest. Never heard of a problem in the northern states.

Fri, 01/18/2013 - 01:11 | 3165310 JuliaS
JuliaS's picture

Plague carriers? Don't be silly! Rabbits can't print money!

Thu, 01/17/2013 - 17:18 | 3163873 knukles
knukles's picture

Probably a super premium select cut ....

Hell when I was over there (way the fuck too many times, I might add) I remember asking for ice for a drink and getting billed some outrageous amount because it was mined from an Alaskan glacier or some such crazy ass shit....

(Yeah right.  Joe Billy Bob off season crab strainer cable operator guy went to the local 7-11 bought 200 bags of ice and pounded the shit with a rusty ball peen hammer to stress it and make it look real purty, put it in some polyethelineglucotic poisonous bags and typed up letters of authenticity and's now living the John McAfee life large in Palm Springs)

Thu, 01/17/2013 - 17:18 | 3163867 Spastica Rex
Spastica Rex's picture

But goats don't taste like chicken.

Cabrito es muy sabroso, however.

Thu, 01/17/2013 - 17:45 | 3163899 BKbroiler
BKbroiler's picture

Pack goats are also some of the best animals to hike with, eat anything, barely drink any water, and if things get rough, it's meat for 2-3 days if field dressed properly (and fish bait).

Thu, 01/17/2013 - 17:09 | 3163833 francis_sawyer
francis_sawyer's picture

Shish-ka-Bugs! [Cook! Bring me some Hassenfeffer]



Thu, 01/17/2013 - 18:25 | 3164111 DeadFinks
DeadFinks's picture

Of course, if you really want to make something good, nothing beats a good old Louisiana Back-bay Bayou Bunny Bordelaise, a la Antoine.

Thu, 01/17/2013 - 17:14 | 3163861 Going Loco
Going Loco's picture

"Thankfully, child labor laws do not apply when it is one's own children, so the cost of labor to raise and butcher the bunnies approaches $0."

Glad to see the kids do the butchering. Start 'em young I say.

Thu, 01/17/2013 - 17:15 | 3163863 Miffed Microbio...
Miffed Microbiologist's picture

HH, I'm envious of your ability with rabbits. I tried to do them many years ago and the 2 does I had kept eating their babies! It may have been something to do with me or I just happened to get Hannibal Lector does but I gave up. Chickens are easier for me. They're Protein for Dummies.


Thu, 01/17/2013 - 17:19 | 3163869 Praetorian Guard
Praetorian Guard's picture

I never understood the concept of humans eating other creatures. Seriously, its healthier and you can receive better nutrients from home grown ag products, veggies, peanuts, etc.

Thu, 01/17/2013 - 17:20 | 3163885 madcows
madcows's picture

Pork chops taste good.  Bacon tastes good.  Brussels sprouts taste like brussel sprouts.  nuff said.

Thu, 01/17/2013 - 17:28 | 3163907 francis_sawyer
francis_sawyer's picture

I just look in the mirror... Smile... See those two FANGS... & I figure if I had'a been born with cow teeth I'da been cut out to eat grass for a living... (I also could NEVER figure out why 'weeds' keep trying to take over my vegetable garden)...

Thu, 01/17/2013 - 20:50 | 3164675 css1971
css1971's picture

Here you go; herbivores with fangs.



Thu, 01/17/2013 - 17:26 | 3163911 Praetorian Guard
Praetorian Guard's picture

"... tastes good" - So do humans. Don't get me wrong. I used to be an avid hunter. Not so much anymore. Animals, in my opinion, were not meant to be eaten. Even from a pure health perspective, eating animals is not healthy.

Thu, 01/17/2013 - 17:31 | 3163917 francis_sawyer
francis_sawyer's picture

Let me toss you into a pride of lions & see what you think then... [Maybe you could teach them how to grow lettuce & tomatoes]...

Thu, 01/17/2013 - 17:33 | 3163938 Praetorian Guard
Praetorian Guard's picture

Apples and oranges. Your argument doesn't even make sense. Stomach pH levels of a predator, and most flesh eating animals, including the digestive tract are completely DIFFERENT than that of a human. In fact, it is the high pH levels induced by eating meat and other shit food that leads to most diseases. Keeping ones pH/blood levels alkaline (base) is more productive in humans and in overall health.

Thu, 01/17/2013 - 17:39 | 3163964 BKbroiler
BKbroiler's picture

Vegetables are a side dish, nothing more.  Humans have been omnivores for millenia for a reason.

Thu, 01/17/2013 - 17:44 | 3163977 Praetorian Guard
Praetorian Guard's picture

Thats not the conclusion from modern science and research...

Thu, 01/17/2013 - 17:56 | 3163996 BKbroiler
BKbroiler's picture

I do admire your conscience toward animals, especially considering the way meat is processed nowadays, but it takes extreme vigilance in diet to maintain the same amount of protein and nutrients you get from meat and fish.  I hope you like eating a lot of nuts (no pun intended).   NYC is filled with vegans, and while some pull it off just fine, most of them look so skinny and pale that a heavy breeze or a sunny day might be the end of them.   That might not be a scientific stance, but it's a practical observation.  

Countries with high meat consumption have larger, stronger (and yes, often more agressive) people, and countries with low meat consumption have smaller, weaker people.  Read Guns Germs and Steel, or any anthropological work and see for yourself. Or just travel.  Hungarians eat massive amounts of meat, and they are huge.  Italians eat much less and they are leaner.  These are quick examples from my own travels, there are endless other examples.

Thu, 01/17/2013 - 17:58 | 3164023 Praetorian Guard
Praetorian Guard's picture

Thanks. I find that whey provides a lot of protein. Now am I 100% vegan. Of course not. Yet I do make a conscious decision to refrain as much as possible. The way animals are bred, kept in captivity, and slaughtered are horrendous these days. I have personally visited a slaughter house years back, and it was nasty. I know people may laugh or nay say, but I believe animals have feelings. Can you imagine if humans were bred by an advanced race higher up the food chain - not so much fun. So for ethical and health reasons, I try to do my part. Most of the gulf has been destroyed from ag runoff (ie cow shit and pesticides). In great shape and not "skinny" by any means...

Thu, 01/17/2013 - 18:02 | 3164046 This just in
This just in's picture

If animals aren't supposed to be eaten, someone needs to bitch slap some sense into those cheetahs, pumas, crocodiles, etc.

Thu, 01/17/2013 - 18:07 | 3164062 NidStyles
NidStyles's picture

Nature is not meant to be fun. You are fretting about something that has no meaning to the outcomes of this discussion.

Thu, 01/17/2013 - 18:19 | 3164094 francis_sawyer
francis_sawyer's picture

Dipshits... TEETH... Look at the TEETH... Species destined to be non-carnivores have flat teeth... That's the end of discussion...

Thu, 01/17/2013 - 18:31 | 3164154 Praetorian Guard
Praetorian Guard's picture

Wow, that was so intuitively deep... you realize dip shit that horses have canines?

Thu, 01/17/2013 - 18:50 | 3164237 booboo
booboo's picture

yes and I had horses once too, they liked to bite the shit out of the  meat on my shoulders and arms too.

Thu, 01/17/2013 - 21:08 | 3164699 francis_sawyer
francis_sawyer's picture

Damn horse probably thought you were a fucking carrot... I mean, shit, I'm not even looking at you & I already thinking "Yup ~ that's a carrot alright"...


Let's ask hedgeless... Hey hedge ~ any of your horses snackin' on the bunnies inbetween meals out there on the farm?...

Thu, 01/17/2013 - 18:28 | 3164136 Citxmech
Citxmech's picture

If you do it right, homegrown = happy healthy critters with only one bad day.

Thu, 01/17/2013 - 18:45 | 3164220 Praetorian Guard
Praetorian Guard's picture

I have noted that as I get older my appreciation for life has become more keen. Probably due to myself having a very close call to death, probably should have died, but made it through. Life, is interesting. Animals react off of instinct, for that they are normal, yet I feel in some aspects that humans, as care takers of this world, should at least try to make everything within thier power comfortable to say the least.

They say animals have no soul, I disagree. Ever see an elephant morn a dead one? Or even a porpoise? Hell, my cat seems to know some connection exists between us. He eats when I eat, he runs off to the shitter when I use my own, follows me all over the house, sits with me on the couch watching tv, or reading a book, goes to bed when I turn in, waits by the door when I get home, and follows me to the door when I leave. Now I can't explain it, but I think humans have a simplistic outlook of life, life is cheap, and the callus perception that we are big shit...

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