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Bond Yields Slide As Core CPI Weakest In Over 4 Years
Following yesterday's stagnant PPI, today's CPI is a shocker. Core CPI rose a mere 0.01% MoM - its weakest gain since Jan 2010. The 'weakness' was driven by energy (-2.6%), airline fares (-4.7%), clothing (-0.2%), and used car prices (-0.3%) tumbling. The headline CPI dropped 0.2% MoM (against a 0.0% expectation) - its biggest drop since March 2013. The 1.7% YoY gain (missing expectations) is the weakest rise since March 2014.
Core CPI slowest since 2010...
Headline CPI dropped MoM..
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Send lawyers, guns and money
Somewhat OT but mortgage applications this morning reversed last week's plunge due to Labor Day holiday. ZH was loud regarding the plunge but quiet on the snapback. Lets keep some perspective Tylers. It's all fun and games until someone loses a boatload of money.
Don't you have some nuts to gather? Winter is coming. It will be cold and there will be snowfall.........
Managing the indicators...gas is just under $3.00 a gallon here. Reality can be thwarted until it can't.
Duh duh duh...... the "D" word, Deflation. Whoops did I say that?
i hate when I get downvoted a thousand times for typing something a few weeks (months/years even!) before everyone else figures it out. "it couldn't happen, it'll never happen" and then it does.
08/26/2014 - 11:48 5145062 Wait What deflation is alreadyQE can never end. i'm betting we get MOAR here in Amerka by next summer.
That's why I come to ZH. For all the nuts...
Especially the guy warning about cancer
Can't after that bad luck streak in dancing school.
I'll sleep when I'm dead.
Ah, the Deflation Fear Bug Plays Large This Morning with the Fed's Meeting.
Nope, no tightening here!
The Fed is Scared Shitless of a Deflationary Environment.
Offsetting that, of course, is the FedEx share buyback causing earnings to beat estimates showing of course, that the Economy is On Fire (NOT)
And U falling (NOT)
Easy Money for a While Longer, Kids
I know you know how to spell Liquidity Trap
Outright default in my view.
I mean again...how stupid is Citi again? These folks are living on Planet Wall Street and really see these truly stupendous paper gains as justified by what's going on with the recovery...let alone "the total abandonment of risk as a tool for money management."
Not saying the stock market is going to crash here...but Greenspan's Insanity is the mythical connection between the stock market and economic growth...something the last of the hard core are trotting out right now yet again.
The only connection is precisely what Jamie Dimon said namely "I'm richer than you"...as if that somehow is going to get people to invest and hire more.
Not only does it not but it would seem it's a total turn off for folks who are all disgusted by the scam of Bailout Nation as well.
D E f l a t i o n (tape slowing down to stopped)
I'm sorry I was distracted.
Did the tape just read "felatio"?
Argentina did this just before the hyp. Just saying
Why so afraid of deflation ???
Because the vast amount of debt incurred by state and private sector is predicated on that debt being inflated away over time, while the nominal value of your assets rises. Deflation: the value of your assets fall, but the value of the debts you have set against those assets, rises. In short: your balance sheet is given a severe dose of reverse gear.
even simpler: deflation tells you to deleverage. not what your friendly banker wants you to do
EXACTLY...
because the moar financialized an economy is, the less it is profitable if in deflation
further, if you have a price inflation of 6%, you can give your employees 4% more, which makes them happy. in a deflation of 2%, they are better off without a raise, and yet not happier for it, except if they understand what is happening
so blame the employees, the ungrateful bastards
Deflation like its counterpart inflation helps only those who come into contact with the money first. Disinflation combined with non deficit spending was posited by Mises as the only way out of a predicament such as we now face.
One reason is that the nominal price of finished products becomes less than that of the production cost. Hence, production of goods becomes unprofitable. Cheaper to lay waste to food than bring it to market. Cost of goods can go down as long as the cost of production drops faster. Deflation isn't negative interest rates.
Yes, indeed. And try to tell your employees that you are cutting salaries. Strikes, riots...call in homeland security.
Hmm things are getting cheaper, I feel poorer already now that I money left over...
Its been a COLD september on the island. Had to shutter the windows early!!!
Nantucket?
Is that you, John Heinz Cohen Kerry?
Martha's Vineyard!! Slaving for the elites. Why the long face John??
I think the Catsup co. owns one of the Elisabeth Islands with a few other globalists.
I can buy bacon again!!!
Yippeeeeee!
There is a lot of double dipping when energy prices decline.
Of course air fare costs decline.
After the election, this will change.
Stay angry and vote the incumbent out.
Used car prices? Seriously?
I take that as a much moar important price indicator than most any other
Yup, that deflation sure has hit the grocery hard...