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US Imports Biggest "Disinflationary Impulse" In 6 Years At Worst Possible Time
August's import prices dropped a stunning 11.4% YoY, the biggest drop since September 2009. This faster-than-expected deceleration suggests "another leg lower" according to TD's Millan Mulraine, as USD strength and renewed energy declines feed through the price channel and reverses a hope-filled mid-year drift higher. This is the 13th month of YoY drops (and 111th of last 12 MoM drops) flashing a recessionary warning.
Hope fades as Import Price drops re-accelerate...
As Mulraine conculdes ominously, "coming at a time when the Fed is contemplating a lift-off in rates, the weak tone of this report should come as a key reminder that the dis-inflationary impulse is re- emerging."
Charts: Bloomberg
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what is wrong with deflation....this helps consumers. Only criminal bankers don't want some deflation. How is that 300% inflation on Hamburgers working?
Deflation is the death of the fiat monetary system, which only lives if it grows, to ensure that there is "money" available to pay interest.
It means the FED is more likely to kick the can again, so the markets are back to partying on bad data again.
I the bizzaro world we live in you are probably right. I can see the cop in Southpark saying "Move along nothing to see here".
QEternity 4 to the moon very soon...hundreds of Trillions world-wide
Inflation destroys savings while deflation enhances savings. As a long term saver I say of deflation- bring it on. Nothing in this insane economic world will be fixed until we have a good hard deflation of crashing debt. And when the debts are gone and prices are much lower your wages will finally really buy things instead of just renting them from the bank. I only had one big mortgage in my life. I defaulted as soon as I figured out what a sucker slave I had become.
Lower Import Prices have also translated into immediate and noticeably lower retail prices.
Not.
Only the death of an indebted fiat monetary system. Without the explicit debt outstanding, deflation would be a great thing.
Natural deflation is a result of the average progess that occurs over time in human society. Deflation in this mad mad world is the tide going out before the great wave.
It's not a contest, both are bad for poor people and great for rich people. You have money? Buy assets. That's the investment strategy of both. Thus where being a smart investor lies. Which is it? Inflation or deflation? Do I buy stocks or bonds?
Yet lest us not forget we are now dealing with both. Massive inflation of currency and deflation of product and services. The system is broken.
Prices move before wages. This little factoid should make anyone with an income and low or non-existant debt happy. Deflation will force a reset on the criminal leverage that governments and elites ahve foisted on people and their descendants everywhere.
I been buyin "assets" for years. Got nearly the complete NASCAR commemerative plate set in mint condition from the Franklin Mint.
I"m set for life after 15 more "easy monthly installments".
Bullish for stocks!
( Congress ) " I see nuthin "
When workers have their hours reduced because of automated employees at MacDonalds then the reality for the man in the street is inflation rather than deflation as they are now able to buy less.
A strong dollar is a bitch for exports (ie UST notes and bills) which is why every Keynsian clown from Krugman to Summers wants a devalued dollar!
Fuck 'em, buy silver
:)
For some reason, most people go around mumbling something about 'buy low, sell high', but won't touch PMs or Equities when they are down.
'It's a very common neurosis, I'm seeing it every day'.
Bullish!!!!
overcapacity in a slowing world wide demand cycle exasperated by stimulas; with tuesdays burger mowwed down on sat and fridays bills due today, ha, ya better not get hungry...
Come on, print some moar Janet before Tepper's balls get nailed to the wall.
markets wish-thinking qe 4, ha
but they just arn't suuuure wtf dr yellow will do
goldman, check
dud, check
buffy, check
numerous other tit sucking hedgies, check
wall st. check
gee wiz wtf do ya thunk will happen...
So what's new ?
I gotta say though ... finally someone who knows how to use hyphens. Refreshing in a jungle of bad English skills. Probably no hope for this improvement continuing or getting better.
Now back to duh markets!
G, Wat wuld wee du widout hep frum de edumacated.
Tank u.
Well, there goes that fucking Beanie Baby investment right down the shitter..
You'll just have to buy more Beanie Babies.
people that can't do math in their head annoy me big tyme, ha
5 out of every 4 people have a problem with fractions.
Fractions, yeah I heard of that guy and I have a problem with him too. That guys a jerk. Now back and enjoying my french benefits.
https://youtu.be/4-ZZw5vylx4
What deflation? When MacDonalds dumps an employee in favour of a computer taking orders, that employee is faced with ruin even if prices are lower. In fact anybody faced with fewer or no hours of work is now faced with massive inflation.
That's why it's quickly becoming every man for himself.....that's the mist dangerous deflation of ALL !!!
Yes, but his unemployment check will buy more imported goods than ever!
Japan seems to be getting by. They have even outdone the iPhone:
https://www.aldebaran.com/en/a-robots/who-is-pepper
Deflation is death to .gov, goodbye
Death to their Treasuries bond scam...
"But why should I buy now when I might be able to buy it cheaper, later?"
Some Imagined Consumer From Every Economic Textbook, ever.
The Fed lie that has been told for over 100 years to help support their effort to systematically kill the Dollar by slow death...
Red roots lead to green shoots. BTFD
Hey! Does this mean all the raw materials I buy from China rather than the US will go down in price? Wow! Great news!
Let's be serious: the Fed has not raised rates in 80 months. The Fed is NOT considering a "liftoff in rates" now. What they are doing is desperately trying to maintain the illusion that a painless return to historical interest rates is possible, if not now then very soon. It isn't.
We now return you to the Kardashians' latest tattoo.
I'm waiting for Kim to tattoo Bruce's dick on her ass in honor of her famother's lost manhood.
i'll believe deflation is here when real estate is being discounted to affordability. I'm holding my breath.
I'll believe that deflation is here when I can buy a 16 oz T-bone steak dinner for $3.99 (with drinks and dessert).
WE MUST PAY MOAR!!!!!!!!!!
Higher housing
Higher gas
Higher taxes
Higher electric rates
higher meat prices
HIGHER EVERYTHING
MOAR MOAR MOAR!!!!!!!
It's the big brawl fight scene from the Matrix when Agent Smith says, "MORE".
The big banks are screamign for more FIAT to smother the economy. Kill of middle class Neo once and for all.
Plunging over 11% today is Krispy Kreme Doughnuts Inc
http://www.msn.com/en-us/money/stockdetails/fi-126.1.KKD.NYS?symbol=KKD&...
Yeah, they go down well.
Dont kid yourself, the import of millions of new poor workers has the same effect on wages, but not housing or water or food or electricity, ..........for the moment.
Damn it..are we importing deflation again?..will we never learn..the Fed wants to raise rates..yo know.. do the right thing...and we Americans keep screwing up their game plans...I am tired of this nonsense..let's put up a 10,000 mile razor wire fence...keep the damn imports out..start industrial production here in America...pay everyone a minimum wage of $20 dollars/hour..that should push up the inflation indicator and let the Fed do their job of raising interest rates..let's get to work America!