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Gas Price Drop Prompts Biggest Deflationary CPI Miss In 7 Months
Thanks, it seems, to the global economic slowdown driving energy prices lower, the Consumer Price Index just printed at -0.2% MoM, notably below expectations (its biggest miss in 7 months) and well down from last month's +0.7%. The main driver of this deflationary spike is the drop in gasoline prices -4.4% MoM. Year-over-year CPI (ex Food and Energy) lagged expectations also (1.9% vs 2.0% exp.) meeting the Fed's oh-so-well engineered mandates. However, the 1.9% rise is the slowest pace of inflation in 20 months. On the bright side, the price of used cars is rising at its fastest pace in months thanks to the 97-month term loans and government credit creation.
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I'm with Charles Hugh Smith: Root for deflation.
Hope to see gas below $3 in California (and everywhere else) soon ...
I was thinking ten cents myself.
I'm cool with deflation. Unlike most Americans, I have 0 debt so the money printing orgy hasn't done shit to help me. I sure as hell wouldn't mind prices going lower.
The S&P at 1200 would likely see these prices. We'll keep our fingers crossed!
Oh, so it is all about gas prices? The price of gas has almost tripled in 10 years, yet "inflation" barely budged. Now it drops a little, and inflation drops like a stone?
Really?
Gas was $1.80 here when Bush handed over the reins of power to our glorious leader.
I hoped it wouldn't change.
Yeah funny how gas prices drop when the economy is crashing
So does Gold, Silver, etc. It's more of a memoradum on demand if anything else.
This is due to the fact that demand for EVERYTHING crashes - including PMs. Also, money run out of cash because deflation is the enemy of a more TRUE wealth creation vehicles (i.e. small biz, VC investments, mining, wages, etc).
That's why it's first by major deflation, then HYPER inflation.......but the in between is usually some type of social event like a war, an election, or terror attack.
This is another reason why the whole "false flag" scenarios peak *my* interest, because it usually in the interest of those who are losing money on these endeavors (i.e. oil).
Societal Uncertainty = inflation for commodities. That's why the price of Gold jumped up the minute the 2nd plane flew into the WTC.
Shizz, you're getting your wish. Check out the St Louis Fed chart for inflation protection bonds for April...negative.
Just wait until they start using chained CPI for Social Security recipients.
Milk, bread, and eggs will be going up at 10% per year but "chained" CPI will be 0.5%, which is about what those folks will be earning on any savings they might have been lucky enough to addumulate.
Inflation is not a problem. End of story.
Or is not needing to drive a car to work a problem?
Based on the labor participation rate, no.
Well, except for people who like to eat food, or drive cars.
....and drink coffee. I really like it but it's getting so expensive.
Especially high quality arabica beans I buy at a local roaster. My last guilty pleasure. I guess I could switch to shitty can coffee sold in 1lb cans that now contain 11 oz. Then I could try and fool myself I'm saving money while sipping yak piss.
Miffed:-)
Uncle Vito said: "Inflation is not a problem. End of story."
"Your health care costs are not going up at 15%-25% per year."
"Your payroll taxes did not go up 2% in January."
"Your income is not down 10% this year."
"You are earning 6% on your savings."
"Food is not up 10%-15% this year."
Thank you Obi-Wan Bernanke.
Inflation is a tax, interest is the true killer.
Unless you pay for health care which is up 3.9% y/y
Right, because affording rent is NOT a problem.
What fucking world do people live in?
It just keeps getting better and better for the consumer.
Wait, there still are some free market principles? You gotta be fucking kidding me!
Guess what central planners: when wages decrease, deflation then has an increase.
But I'm sure when the guys over at the Fed have their Prime Rib at Morton's tonight with the CEOs and shareholders of the world (and probably on the tax payer dime), I'm *sure* this will be discussed #eyeroll
Ah yes, deflation. What all this printing and spending is all about.
And when deflation picks up, it's going to get hellish out there.
Actually the stated goal is to create inflation unlike what the dope who wrote this article says. Insofar as money goes "Tylers Durden is a place for the criminally retarded." I love it when they bitch about their cell phone bill actually. Anywho "down to your last cuff link" Goldman. "Down to your last cuff link."
dis vet, rumor has it you were disabled much like j f kerry in the ass while running away from the action..is that true?
fer sure - nice to see the taboo "D" word being featured here for a change
maybe soon the other "D" word, namely the US Dollar, will be discussed in sentences that don't include the word "collapse"
the long term charts suggest the dollar is going much higher from here
Bet On Your Dollar Bottom
http://chartistfriendfrompittsburgh.blogspot.com/2013/04/bet-on-your-dollar-bottom.html
Must be nice not having to eat.
As for the charts, they can go full hockey stick and still not provide any information at all, as measured in purchasing power. All they do is make up a relative pain index.
It's actually a mixture of deflation and inflation...some call it Biflation.
Insruance, food and tuition and so on are still rising.
Deflation tends to result in more civil unrest so CBs and leaders try to avoid it. My guess, based on history, is that we'll see more "stimuls"...call it QE or whatever, but more, lots more in one form or another.
House prices, textiles, are sinking. Even rents are dropping with oversupply hitting many markets. Everone piled into that boat thinking they can all sit at home in their PJs making millions in the rental property business. Think again.
Last time I looked the private for profit criminal fed cartel was not contracting the money supply
Bingo. In two words; "bidless paper" - The "flation" debate is pointless as scarcity and real wages will trump any bullshit eCONomic theory.
"Last time I looked the private for profit criminal fed cartel was not contracting the money supply"
And the money was not trickling down to regular folk either. How do you have inflation without wages or consumers?
I'm sorry I forgot about price gouging and the victim tax.
must view charts. copper in warehouse at all time highs, up 180% in 6 months. economy IS in freefall.
http://www.kitcometals.com/charts/copper_historical_large.html#5years
Hell yeah ! ...another flashing neon sign to keep printing moar.
"Hell yeah ! ...another flashing neon sign to keep printing moar."
And put it on buildboards everywhere, followed by the words, IT AIN'T WORKING!
biggest cpi miss in 7 months= good for a 120 plus open on dow and 15 plus on s&p.
earnings expectations that are so fucking low, yet when these shitty companies beat by very slim margins, they are celebrated as if they had a great quarter.
it would be like a professor changing the grade of an A to 55 plus rather than 90 plus.
that is what is with the markets, u only need to do so little now to get rewarded significantly.
it would have been so much better had this terrible tragedy happened on wall st yesterday, at least the people who would be hurt would not have been innocent, but criminals. would have been nice if obama and bernanke and blankfein were at the marathon, fucking criminals.
You know I've been in that desert in Syria.
"earnings expectations that are so fucking low, yet when these shitty companies beat by very slim margins, they are celebrated as if they had a great quarter."
Thats because if they didn't lose anything in this rat hole they call an economy it was a great quarter/illusion and God Bless POMO
Gas prices dropped a nickel... OH NO! DEFLATION! Let's see, if the real inflation number is 14%, and we jigger it down to -.2%, then the magical number says deflation, but that's just a bunch of hooey so we can slam down the markets and BTFD and rape the muppets.
Exactly. What is this gas price compared to 5, 10, 15, years ago? Many here have been saying GS and other PDs will beat down paper gold, then attack oil. They have to, otherwise inflation up, rates up, game fucking over.
Ok, now we have officially gone full retard.
http://www.breitbart.com/Big-Government/2013/04/10/Maryland-governor-taxes-rain
Many states have this tax already. Many ways around it. One way is to capture and collect all your rainwater. Others include agricultural exemptions. The livelyhood of many depends on rain that never leaves the fucking property. Lots of legal precident already out there. Go ahead try to enforce any of this and watch the lawsuits roll. The plan will end up costing the state more than it brings in and make lots of attorneys happy. Our leaders and administrators are getting desparate and they need to "look busy", nothing more.
Honey get the checkbook.......looks like rain.
How can we, as a society, protect against this egregious theft from your neighbor who is too lazy to grow a garden?
Just how many fucked up laws are on the books already? And we keep electing these assholes so they can make MOAR laws? Umm, hello? At the least, we could use a one hundred year politician free period of time to self-correct back towards sanity.
http://www.youtube.com/watch?v=mxFzJ2Gtgxc
I will tax your rain barrel then bitchez. TAX, TAX, TAX.
http://www.atlantaprogressivenews.com/interspire/news/2011/06/28/atlanta-proposes-charging-for-collected-rainwater.html
Old news, has already been defeated.
Well, the Libtard half of the country has gone full retard.
I am slowly trying to organize my life so I never have to set foot in, or spend money in, any Libtard state.
A rain tax, along with a birth tax, air tax and disease tax is an example of good "progressive" thinking. The ultimate goal of progressives is a perfect world (for them) with a prison for those outside the gate.
Let them build their "gated" communities, I would debate you as to who the prisoners really are.
Pet taxes have moved into my region lately. $10 for fido $5 for mittens. I wonder what TPTB have to pay for us?
97 month car loans. How absurd is that. Yeah, Amerika is growing, right. What a farce.
Acts of desperation to keep the Ponzi scheme going. It all works until it doesn't anymore.
Come on. We all know very well that 109 comes after 97. We can never run out of numbers. What are you guys dropouts?
well I'll be damned. Looks like the CNBC pundits want you to think the market dropped yesterday because of what happened in Boston. These guys are shameless.
You mean that things are getting cheaper and so I won't have to pay as much and may not have to get into debt to fund my meager existence...Yes this is very bad!
Our whole system (of enslavement) could blow up because of this....No wonder Central Bankers don't like deflation...I understand...IT'S BAD!
It's bad for them ergo it is bad for you.
Just turn your TV on and leave it on, citizen.
Deflation my ass. What the fuck are they talking about?
It's all about the POINT OF REFERENCE.
http://gasbuddy.com/gb_retail_price_chart.aspx
(click on 11 years button)
Compare it to 2000, not with few months ago.
We have had 100% increase, which is HYPERINFLATION of gasoline price.
Hyperinflation has plateaued at 100% but it has stayed there.
The proper commentary would be:
There is some relief on the gasoline price Hyperinflation
LOL. It can't be hyperinflation, if it was planned. And now that the plan has been executed, I'm feeling pretty good. Not about myself. I'm fucked. Just nice to know the plan worked out.
Careful. You need to define hyperinflation. Many, including myself, define it as a loss in CONfidence of the fiat currency at hand; NOT as "really high inflation."
Dow futures climbing and climbing and climbing... "Get Ready To Ralleeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeye!
Expect full economic kamikaze suicide next from Bernanke all the Central Bank Keynesians socialist control freak types who fear deflation since it will repudiate their ideas and discredit them outright. Pride before a fall can't have that PHD thesis proved wrong. Keep hammering the gold fuckfaces we still win in the end.
We may win but ain't going to end well for a lot people and that is something that pains me personally but at the same time I am not the one being a macromanaging control freak or forcing my ways onto other people like a financial rapist.
I don't get it. When gas goes up, it's not inflation. When it goes down, it's deflation?
Don't quote me as 100% on this but it is either gas prices, crude or the combo of both in general that tend to traditionally mirror the level of the stock market. When they rise the market rises. When they fall the market falls. You have the gold takedown, Hindenberg omen now this. The subtle hints from the FED about increasing interest rates on Treasuries, bank stress tests showing 50% drop in the stock market. It is all pointing to a major downswing coming and coming soon QE to infinity and beyond or not. It is almost like Benny and the socialist shills are setting a trap. Corral all the sheep into the stock market slaughter pen. Once they got the majority of the middle class and their savings/401ks/pensions in the pen they are going to pull the rug out and wipe them the fuck out in one fell swoop by crashing the market and trying to create hyperinflation at the same time.
And after reading this.
http://www.zerohedge.com/news/2013-04-16/imf-slashes-world-gdp-expectati...
I am almost absolutely convinced they are going to crash the market and raise interest rates on Treasuries. Why simple, if you allow Japan go fuller that full retard on the printing, you can throttle your presses down as long as Japan buys the difference the FED is currently monetizing in Treasuries. Remember they all work in tandem with the IMF playing orchestra conductor.
My advice if you are stuck in slaughter pen run as fast as possible into short term T-bills right now before blood bath starts. If you can preserve principle you will be ahead of most everyone else after the slaughter finishes.
Unprecedented volume of refined gasoline export continues:
U.S. Exports of Finished Motor Gasoline (Thousand Barrels)
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mgfexus1&f=m
It's a global market. LOL.
Gasoline usage has been dropping steadily in the US since 2008. Obviously the price of gasoline has its own unique "rhythm" that has little to do with demand.
But no worries, oligarchs, speculators, other middlemen and the government are not to blame.
Look in the mirror.
/sarc
Geez, deflation wouldn't have to do with wages and its relation to money supply, does it?
http://t.co/dcxFZillW4