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US Inflation Expectations Hit Post-Lehman Lows Ahead Of FOMC

Tyler Durden's picture




 

In what appears perfect timing, US inflation expectations (as measure by the market) have plunged to post-Lehman plunge lows - falling further even after The ECB unleashed Q€ last week... we are sure The Fed will be 'patient' and dismiss this as a good dis-inflationary trend that is merely 'transitory' but isn't it ironic...

 

US Inflation expectations hit post-Lehman lows...

 

and then the IMF comes out and says...

  • *ECB QE KEY TO COMBATING DEFLATION RISK, IMF OFFICIAL SAYS

Which appears to be an utter failure in that regard...

 

Charts: Bloomberg

 

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Wed, 01/28/2015 - 14:48 | 5716708 mtndds
mtndds's picture

BULLISH!!  Markets are going to finish up 200-300 pts. today all because of the vomit that comes out of the FEDs mouth.  ugh!!

Wed, 01/28/2015 - 14:54 | 5716716 ukspreads
ukspreads's picture

Yeah, buy the fucking sick ;-)

Wed, 01/28/2015 - 14:57 | 5716764 Stackers
Stackers's picture

I'm "importing deflation" like a mo-fo from Europe right now.

Wed, 01/28/2015 - 14:59 | 5716765 knukles
knukles's picture

I dunno know about that.
The last few press conferences by Yellin' were bad enough with her fumbling, contradictions and confusion that the "swalk" market wound up going down after a short while.
Gets tough to say anything pertaining to reality when you're all in with no next steps left in the toolkit.
NIRP?
That's not a tool or step.
If it's that bad, it's a sign of desperation.

Wed, 01/28/2015 - 15:03 | 5716784 Bananamerican
Bananamerican's picture

"Daddy, what's a trading floor?"

Wed, 01/28/2015 - 14:49 | 5716719 DJ Happy Ending
DJ Happy Ending's picture

I love deflation and cash is my spirit animal.

Wed, 01/28/2015 - 15:03 | 5716787 SDShack
SDShack's picture

Just got back from the grocery store. Where is all this Deflation? Also have to pay my Healthcare Premium and am still looking for the $2500 annual savings 0zer0 promised.

Wed, 01/28/2015 - 14:54 | 5716751 devo
devo's picture

More like 2000-3000 points. Today has to be the day it's obvious to all there will never be rate hikes.

Wed, 01/28/2015 - 14:56 | 5716759 stocktivity
stocktivity's picture

Let's see...It's 1:56pm. I'd expect the algos to get the inside information in 3...2...1...

Wed, 01/28/2015 - 14:47 | 5716712 maskone909
maskone909's picture

ECB combating deflation?  not for USD's it appears. 

Wed, 01/28/2015 - 14:52 | 5716732 stocktivity
stocktivity's picture

Baltic Sea Index down below 700.

Wed, 01/28/2015 - 15:02 | 5716779 doubledutch
doubledutch's picture

Yup 666..Sell AUD,ASX,...

Wed, 01/28/2015 - 14:49 | 5716714 Soul Glow
Soul Glow's picture

Foods still expensive but Dr Paul Krugman doesn't notice.  His country club BLT's still taste the same.

Wed, 01/28/2015 - 14:49 | 5716721 maskone909
maskone909's picture

what i would pay to make him a BLT.  i would make it the tyler durden way.

Wed, 01/28/2015 - 14:54 | 5716749 achilles5008
achilles5008's picture

Does he eat prok?

Wed, 01/28/2015 - 14:58 | 5716771 knukles
knukles's picture

What does a a hypocrite not do?

Wed, 01/28/2015 - 14:48 | 5716718 Bell's 2 hearted
Bell's 2 hearted's picture

this sentence sums up US (demand) nicely

 

Horse's Mouth:

 

"At 406.7 million barrels, U.S. crude oil inventories are at the highest level for this time of year in at least the last 80 years."

 

http://www.eia.gov/petroleum/supply/weekly/pdf/highlights.pdf

Wed, 01/28/2015 - 14:51 | 5716735 maskone909
maskone909's picture

QE only fixed bankbalance sheets.  this is the most obvious evidence of flawed trickle-down-economics there is. 

 

instead of "tanks in the streets", we got TANKERS in ther streets.  lmfao

Wed, 01/28/2015 - 15:02 | 5716773 McMolotov
McMolotov's picture

That's because we're now energy independent!!!

Sarcasm aside, I don't think many people are driving anymore unless it's absolutely necessary (work, school, etc.). I go to Walmart about once a month, and it's always dead now. I've never seen the parking lot as empty as it's become over the last year or so. People are trying to save money any way they can, and cutting back on driving is one of those ways. The economy is limping along, with GDP propped up by health care spending. That should scare the shit out of most rational people, but the talking heads on TV are far from rational.

Wed, 01/28/2015 - 15:08 | 5716802 BandGap
BandGap's picture

Think it through.

Tanks run on oil, aircraft run on oil, armies run on oil. China stockpiles, Russia doesn't have to, the US runs up it's inventories.

Bombs away, baby!

Wed, 01/28/2015 - 15:59 | 5717083 maskone909
maskone909's picture

holy shit u have a good point

Wed, 01/28/2015 - 14:54 | 5716727 Dr. Engali
Dr. Engali's picture

I like to buy a hedonically adjusted flat screen teevee every week to serve the kids for dinner. 

Wed, 01/28/2015 - 14:54 | 5716731 ebworthen
ebworthen's picture

Free money can't cause inflation when it goes to the parasite banks/corporations/insurers.

Janet, if you want inflation, send me my $3 Million tax free bailout ASAP.

Wed, 01/28/2015 - 14:52 | 5716737 Bell's 2 hearted
Bell's 2 hearted's picture

 "US inflation expectations (as measure by the market) have plunged to post-Lehman plunge lows - falling further even after The ECB unleashed Q€ last week"

one of these days ... the "experts" might get a clue

 

ZIRP/QE disinflationary ... deflationary when asset bubbles burst (we're at onset)

Wed, 01/28/2015 - 14:55 | 5716753 medium giraffe
medium giraffe's picture

Maybe Alanis Morissette isn't as stupid as she looks.  Many of the things she bemoaned as being ironic were not great examples of irony, so perhaps there is a deeper irony at play...

 

Wed, 01/28/2015 - 14:56 | 5716756 wmbz
wmbz's picture

If oil were to go back down to $20, all of the small and mid-sized companies would be crushed. Big oil buys up the ones they want for pennies on the dollar.

If big oil runs into a problem, then they head straight to D.C. and get bailed out by the taxpayer.

Wed, 01/28/2015 - 15:38 | 5716975 Billy Sol Estes
Billy Sol Estes's picture

Those were my sentiments. Standard Oil did it a different way at the turn of the century, but the end result is the same. Big Fish eat the slowly dying little fish.

Wed, 01/28/2015 - 14:57 | 5716762 ebworthen
ebworthen's picture

Markets are green so the word must have been put out that the FED will raise rates in 2020 depending...

Wed, 01/28/2015 - 15:15 | 5716850 tawdzilla
tawdzilla's picture

Low oil prices are deflationary...until they aren't.  Sure, in the short term prices of most things will go down, but eventually the lower input costs will cause the economy to heat up, causing prices to go back up again.  Once the Fed digests all the data from Q1 and Q2 they will be forced to raise rates in Q3...just my opinion.   

Wed, 01/28/2015 - 15:24 | 5716909 JailBank
JailBank's picture

I have noticed that nothing costs more than it did a few years ago.

Wed, 01/28/2015 - 15:26 | 5716918 ArtOfLife
ArtOfLife's picture

Wait, the 5y5y turned negative in 2012?

 

http://www.zerohedge.com/news/negative-5y5y-2200-gold

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