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What Rate Hike: Annual PPI Drops Most On Record Even As Gas Prices Rise In October
Just in case the latest retail sales miss (where every major spending category missed across the board) wasn't bad enough, moments ago the BLS also reported the October PPI, which also was a disaster if only for the Fed, with the headline print sliding even deeper into deflation at -1.6%, down from -1.1% in September, and missing expectations of -1.2%.
PPI's excluding the volatile series also missed sharply:
- PPI Ex food and energy up barely 0.1%, Exp. 0.5%, down from 0.8%
- PPI Ex food, energy and trade up 0.4%, Exp. 0.5%, last 0.5%
But the real pain emerged on a year over year basis, where the headline drop was the worst decline in history!
Surprisingly this time it wasn't energy's fault, where prices were unchanged at 0.0% in the month, while gasoline prices actually rose 3.8 percent.
This time wholesale deflation was prevalent in most service other categories including apparel, jewelry, footwear, and accessories retailing; loan services; portfolio management; wireless telecommunication services; and health, beauty, and optical goods retailing also declined.
There was a modest rebound in prices for truck transportation of freight which rose 0.3 percent. The indexes for food retailing and deposit services (partial) also increased.
Among goods, over one-third of the October decline in the final demand goods index is attributable to prices for light motor trucks, which fell 1.8 percent. The indexes for chicken eggs, iron and steel scrap, beef and veal, boxed meat, and electric power also moved lower. The indexes for pharmaceutical preparations and corn also advanced.
furnishings, paper, plastics, health, beauty and major household appliances.
Worst of all, the index for final demand less foods, energy, and trade services edged down 0.1 percent in October.
In other words, the Fed can no longer blame "transitory" energy prices for deflation.
And now, check to you Mr. Chairmanwoman and your December rate hike.
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"Get to da choppa!"
The Fed should stop using their retarded Fed-speak and switch to Baby-talk instead.
Here’s what the rate-hiking FOMC “decision” should look like:
Mama dada
Bama saka kaka
Poo-poo
Looney ;-)
zirple nirple yum yum
With the December rate increase Janet will cement her place in history as being the Fed chair that repeated 1937 all over again in the modern age.
When you are in a liquidity trap you PRINT YOUR ASS OFF AND NEVER STOP. The instant you stop everything starts sliding backwards.
this is not some ordinary run of the mill liquidity trap. this mofo is BIG.
HA! "Mr. Chairmanwoman" I don't think that's a typo!
Yeah it was, Tyler reallly meant to type "Mr. Chairthing".
Not boxed meat!
and reality said! "gotcha bitch"...
And now, the Fed is confused.
Tyler says this like it's something new...
They all start all small and cuddly. Then they grow up. Even King Kong was a baby once.
The bernank got out while the getting was good. Fuck him and his "thesis experiment"
"PRINT YOUR ASS OFF AND NEVER STOP" Huh?
The printing is what has caused the tawdry bloating of the deflation problem. Raise interest rates to a free market level and you reward the frugal and the entrepreneurial small business owners. This is the bedrock of a free market economy. Small businesses don't need more credit. Small business owners need a market interest rate on their deposits.
And savers as consumers have been entirely removed from the economy for seven years. Time for a change?
Printing rewards the scoundrels in society, not the productive. Print, as they have been printing, and you reward the welfare cheats, and the conniving financial dufuses who are buying over-priced homes with 3% down and defaulting right out of the mortgage-payment gate. Print and you reward the greedy risk-ignoring bankers and the swindlers on Wall Street.
The bell tolls for thee.
Ya got my coffee on that one.
How to confuse a Fed official
Put 2 shovels against a wall
Ask official to take his pick
Or
Put fed official in a barrel
Ask them to piss in the corner
jimmy hoffa pissed in a barrel, opps, sorry wrong thread.
The FED will "act" in a manner that is approved by their peers; they are academics first, bankers second and politicians third.
It starts with "private" grumblings from a small, non influential group, then it spreads to a larger group, then the "most respected" begin to grumble, then the grumbling goes public...at that point, the pressure is too great and the FED "acts" to show the public it's "in control" and to win the approval of it's peers.
Even if the move is disastrous, they "did the right thing" but "unforeseeable events" crushed their perfect plan.
i once thought a rate hike would result in a 30-handle for oil.
clearly, i am wrong on this theory.
it would result in a 20-handle.
Time for a massive storage or refinery fire/explosion. Can blame the terrorists.
Boxed in....
Indeed, Not only by their policies but by their own stupid decision to keep opening their yaps and explaining everything. Now they're not just in a policy box they're going to lose whatever shred of believablility they have left on the jawboning side.
The Fed has rendered itself irrelevant.
Yet at the same time they are a legend in their own minds, go figure.
Well, not really irrelevant, but I understand the main point. They may have painted themselves into a corner, but whatever actions they take most certainly will be relevant.
Yes, a guy holding his finger on the button of a printing press can never become irrelevant. What can become irrelevant are his elaborate stories.
Gold unchanged on such weak data. How many billions worth did the Fed sell in a microsecond?
remember early 2015 stories about INVENTORY build up being a driver of gdp? stands to reason prices are falling (starting 1Q15) with all that supply
Someone sure seemed to come in and slap that 8:30 spike right back down below resistance.
I'm a bit confused by the last sentence and penis softening last picture.....did ol yeller actually state a Dec rate hike? Or is that just the Vegas odds maker stuff.
softening? that gave me an "innie"
big hairy nirples :vomits:
Lol...
I never thought I would see a bigger group of retards than those at MSNBC, until the folks running our monetary policy showed me that they can be even retardeder.
The folks at the IRS are sad as they thought they had mostest retardest sewn up.
Also Doc, at my kids' high school there are posters in the hallways forbidding the use of the "R" word. The posters don't actually have the word on them just state "Don't say the R word." I had to ask my kids, what is the R word?
Yeah, I don't use it around my kids, but I grew up in a different era.
Those eyes, only satan can love.
They'll raise rates just for the lulz. It's like those people who tell cancer patients to put coffee up their ass to cure cancer. They know it won't actually fix the cancer, but they like the thought of someone putting coffee in their ass.
The shovels are free but you have to do your own diggin, ready sucker?
HIKE YOU FED FUKKERS - HIKE !!!! PUT AN END TO THE SHITSHOW NOW NOW NOW!!!! BLOW THIS BITCH UP!!!
This is a bunch of BS. The FED has created a huge misallocation of capital. The ONLY solution is to raise rates. Too many zombie companies are alive ONLY due to free money. Rasing rates will trim the dead branches.
"Rasing rates will trim the dead branches"
LOL..nope...it will KILL THE TREE!
Billions of dollars flooding into companies with no revenue and no real long term business prospects.
Walamart is on track (past/future) to buyback $51 BILLION total of it's own stock! And that's just Walmart and it's all made possible by rolling over debt at ever falling rates.
A .25 increase will be a wrench in the gears of the economy.
not to mention the soil is monsantoized...
To pick nits, the 0.25% increase itself won't be the wrench, the implications that liftoff has commenced toward 5% compared to QE4 and NIRP is the wrench.
Apparently, ZH doesn't read the gnus
In an interview with Yahoo Finance, Secretary Lew also described the U.S. economy as “pretty positive” right now
He's looking at the charts upside-down...
Lew was looking at his ass and thought it was a hole in the ground.
I know God wants the Fed to wait until Spring but I still think +0.25% in December and then -1.25% in January.
Lew and the Fed just look at stocks as the only indicator of how healthy the economy is.
Since stocks haven't dropped that much everything is still awesome.
I don't understand this article. Does this mean the unicorns throws up or does NOT throw up? Make some sense here!
The FED is feeling a LOT of pressure from its peers, so the odds of raising at least .25 are better than 50/50.
If the FED doesn't raise, you know they are terrified of what even .25 would cause...that they would be willing to suffer a hit to their reputation amongst their peers rather than just raise .25 to hush the criticism, speaks volumes as to how screwed they/we are in this mess they created!
5 basis points...or even one basis point per month for a year.
Excellent. My boxed meat will be cheaper.
Who buys boxed meat? Is that like Omaha steaks shipped in a cooler? Or is that like powdered hamburg,,, just add water?
Looking at the photo of Old Yellin I have to wonder what went wrong with her.
People are supposed to be reflective in their older age. They should be looking inside for those things that the outside world cannot provide. They should not be trying to con and control the world. That is for younger folks who have something to prove.
... this rash of older sociopaths concerns me. They must be either not in control of their own actions or suffering from some latent form of psychological retardation. Older folks should be the voice of reason, knowledge and experience and not the most aggressive fraudsters in the room.