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China CPI Comes Hotter Than Expected At 6.5%: Highest Since June 2008
Following hotter than expected Chinese CPI, futures have taken another major, with ES now down 1.7%, same as the DJIA, and NQ down 1.8%. The reason: Chinese July CPI which came at 6.5%, hotter than the consensus 6.4%, and indicative that contrary to expectations, the politburo is still focusing purely on dealing with Bernanke's exported inflation. It also means that there will be no joy in Mudville and China will not serve as the much needed growth dynamo to push the entire world out of the re-depression. The breakdown in component shows that food inflation jumped 14.8% versus non-food inflation rising 2.9%. Elsewhere PPI came in line with expectations at 7.5%. "China’s rising inflation is likely short lived given falling food prices, especially pork," Bloomberg economist Michael McDonough says. True, however the much needed panacea for the overnight malaise that has gripped the world market is not forthcoming, and the ball is now squarely in the Chairsatan's court.
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Transitory.
the severity of the recent moves mandates some kind of intervention tomorrow...this is looking eerily reminiscent of 07
Oil looking gooooood, at this rate I'll fill up for .43 cents a/gal by the weekend. $76 down 7% after hours. Cramer what?!
www.silvergoldsilver.blogspot.com
oil is getting totally crushed...we'll see how low it goes and for how long.
If you were an interventionist looking for a man-on-the-street inflation metric to aim for, it'd be oil. You'd let gold go its merry way.
Gold is either pricing monetary blitz or sovereign collapse. Oil is pricing severe and sudden contraction. Brent still at 99, however. Seems like the Brent price in excess of 120 leads to full stop conditions.
$1740.60 bitchez!
This is my read, at least approximately.
Oil decides everything. It has crushed the world with 120 Brent. Now the world, crushed, won't buy oil until it can get started again, and when it does, Brent will smash it again, only lower, increasingly worse. The down sloping sawtooth pattern.
This is a key reality. Oil can NEVER EVER go to $500/barrel. It destroys the world before it gets there, and with a destroyed world not burning oil, the price can't rise.
This leg down will generate riots. Clearly already in the UK. But when America starts to rock and roll, bullets will go through skulls.
There will be no recovery from that.
OT (sorry trav, tyler):
Thanks to Atomizer for this find:
***THIS IS A TRUTH-RED PILL BREAKING NEWS ALERT***
The Bernank's Key Advisers Have Officially Now ALL Quit Their Posts.
I Repeat; The Bernank Is Being Bailed On By Even His Former Man-Servants & Lackeys.
Black Flag Color Code Is Now In Affect. I Repeat; Black Flag Color Code Is Now In Affect.
God Save The Amerikranski & Global Ponzi Scheme. The Amerikranski & Global Ponzi Scheme Is Dead. Long Live The Amerikranski & Global Ponzi Scheme!
Federal Reserve's Sheets Quits as Bernanke's Chief International Economic Adviser***THIS HAS BEEN A TRUTH-RED PILL BREAKING NEWS ALERT***
Employees are Transitory
Correct, but it will be hard to justify any sort of "quantitative easing"
Heard rumblings on Reuters that the Fed will announce no QE3 tomorrow. Brace for shock.
Yes, this has also been a puzzle to me, why so many clamor for it.
Q1's 0.4% GDP was right smack dab in the middle of QE2. QE2 did not help GDP. It hurt it. Unemployment ROSE while QE2 was underway.
Why would they do more? What parameter says it's a good idea? The two paramaters of their mandate don't say it helps. Inflation rose all spring long and Unemployment did too.
Their dual mandate should say no QE3.
Indeed...transitory...the ES action, I mean. I suspect they will rally that scalded chimp deep out of the hole in the middle of America's night so that no one can challenge it on the way back up...to the Bernank's statement...which will be empty and useless.
RSI on ES is @ 20 on this selloff all the way down from 1345. The MACD is lower than I have ever seen that indicator on index futures.
It's the handiwork of bankers. More derivatives! It's called "investing."
My guess is...no one will be happy with the market action tomorrow.
Welcome back old man, been hiding down the rabbit hole have ya?
haha "Chairsatan" I love that term.
china cpi just got kosdaq to suspend trading....
Fed Charmin, Ben Bernanke, will eventually print. He is nothing if not a counterfeiter.
Communist Purchasing Index still has meaning? Who'd a thunk.
The Bernank will be especially pleased to hear of falling pork prices.
Your avatar is bill hicks right?
Yep.
he witnessed Waykoh, that really struck me. Way ahead of his time, saw what was happening longgggggggggggg before I ever did.
No QE3 or HSBC gets kicked out of the biggest gold market on earth and Forbes 500 corps (most belonging to the banksters) too.
Oh, and go gold! May the miners follow.
Meh, not a gold digger. Rather have the bling in hand.
Now I ain't sayin' The Bernank's a gold digger.
Gold Digger/es is loving it 1085 last print.
"Traditionally this will only be transitory. As my Jackson hole is tightening, I would kindly ask all you doomers to eat your Ipads and stop reading ZH" - Chairsatan Bernankenstein
We need more Libs in office. Plenty of more wars to get into.
Ecuador feels soooo lonely....
Yeah, I remember when Bush and the Republicans voted against the Invasion of Iraq after Saddam masterminded September 11th. /sarcasm
$1740. all bets are off.
If I hear that BITCH on CNBS say one more time "trading is light" to justify the plummeting in the futures, oil, etc. I am going to reach through the screen and tear out her fucking vocal chords.
+1 Lol...
Oh yes, those CNBS newscasters do have a naive way of reacting to economic catastrophe that incites fury in the viewer.
They got new gloomy music. All scary goth like...
How many of these 8pm doom shows are they gonna run?
oil is just getting woodshedded. This would seem to give some cover to QE, but if they were gonna QE3 tomorrow, it'd already have been leaked and manifested into the markets.
Maybe we are going to see a return to those emergency Fed announcements like late 07 thru early 08. Where the shit was LLD and you are like they simply have to announce a discount rate cut today.
The severity of the forex moves is also noteworthy
"if they were gonna QE3 tomorrow, it'd already have been leaked and manifested into the markets."
I think you are right....sort of like the leaked S&P downgrade last week.
There is nothing but uncertainty in every immediate direction, but over the horizon, the only direction is down for the economies of the world. It feels like the universal bubble is about to blow. we have become so intertwined, we truly live in a "House of Cards" world.
Double post.
Aussie Dollar Drops Below Parity
http://www.bloomberg.com/news/2011-08-09/australia-dollar-drops-below-1-01-first-time-since-march-as-stocks-slide.html
The crackheads on Bloomberg are demanding QE3 from the Fed as the only hope.
I guess it would be dumb to suggest looking at volume on light versus tonight's trading?????
Don't look now, but gold is over $1740 already.
By the time the Chairsatan announces QE 3, Gold will be over 1800.
Does the Hang Seng have a breaker like the US indices? Because they're getting awfully close to a 10% drop in the first 10 minutes of trading!
ot - god i'm enjoying watching the fly cry like a bitchezTM:
The game plan going forward entails lots of finger crossing. I am fairly scared to death that this market can plunge 10%+ in a day. I am putting all of my emotional capital in The Fed, which is a future mistake yet to be revealed. I can see myself making mistakes in real time and it shocks me. We’re all waiting for respite, some semblance of normalcy in order to reduce risk. However, when markets are this oversold and sentiment is at the point of panic, markets crash. Granted, we’ve crashed over the past 12 days, down more than 17%. But if confidence isn’t buoyed ASAP, we’re gonna crash some more. Sadly, this time around, I don’t see our leaders doing anything. I mean, these fuckers aren’t even trying. It the midst of a global meltdown, our fucking President is hosting $15,000 per plate fundraisers. Something is wrong. It’s as if they’ve resigned themselves to let this thing just play out. The consequences of their inaction will be devastating for this country, and more specifically me...
everyone long must be looking for a bounce to GTFO. This is reminding me more of 08 than anything else. However, those countertrend rallies were vicious.
At least Nero was playing a musical instrument instead of duffing it up on the golf course...
one of the authors on zh said something about "if bernanke had said something today we might have gotten a bounce..." I thought it an odd thing to say as in what good is a short term bounce? Now I know, many are hoping/praying for a bounce to sell into. They better hope they get it tomorrow or else it could be a real bloodbath.
The magnitude of bounces that are quantitatively possible after such a violent sell-off are enormous, much more than any Fibonacci retracement might lead you to believe, given the pervasiveness of HFT throughout.
By comparison, the "Berlusconi Bounce" was more of Babbling Bust.
It's difficult to imagine what Bernanke could say or do at this point that would have any lasting effect. He's like the little E-Trade baby who has cried "Goose!" a few too many times already.
In fact, for him even to move gold down 50 points for even 12 hours at this point he would have to appear on television wearing a Greenspan mask while riding a unicycle and juggling copies of Friedman, Schumpeter and Keynes' books.
Yes, Bad Mental Picture, I know...
oh,at last,the world is becaming a giant argentina,im so happy!now you`ll all have the chance to know this strange experience.
I was there with dollar denominated student loan money. I must say, it was awesome until it was very sad.
http://www.spiegel.de/international/world/0,1518,779008,00.html
China Faces Slowing Growth and Mounting Inflation
Life is getting more expensive in the country often referred to as the world's factory -- not just for producers, but also for consumers. Chinese consumer prices rose 6.4 percent in June year-on-year, the highest rate in three years. Pork, the most popular food in China, is becoming a luxury -- its price has risen by more than half since June of last year.
The inflation is making people angry. Early last week, around 1,000 taxi drivers went on strike in the eastern city of Hang Zhou to protest against rising fuel prices and traffic congestion.
The unease is being compounded by a deteriorating economic outlook in China's most important export markets -- Europe and the US.
The Chinese probably lost their last illusions about America's economic might when the US raised its debt ceiling yet again to avert insolvency. China has more than a third of its $3.2 trillion foreign currency reserves invested in dollars.
Chinese central bank governor Zhou Xiaochuan urged Washington last week to act responsibly to deal with its debt. The state Xinhua News Agency said the political wrangling in Washington had been a "madcap farce" and it described US debt as a "ticking bomb."
The Chinese economy, the world's second largest, is already at risk of overheating, with dramatic consequences for the world, because it has been the driving force behind global growth. China has been growing at double-digit rates for years -- by 10.3 percent last year alone.
German firms in particular have been benefiting from the huge Chinese market, which is starting to slow. An important sentiment indicator measuring the mood of corporate purchasing managers fell in July. The Shanghai Stock Exchange has been stagnating. And real estate prices fell 13 percent year-on-year in the first half.
The expected slowdown could be interpreted as a sign that China's economic planners are managing to engineer a "soft landing" for the economy. The central bank has raised interest rates five times since October 2010 and ordered banks to boost their loan loss provisions in a bid to stem price pressures. But a weakening construction sector -- a key industry in China -- is likely to pull other sectors like cement manufacturers and steel makers down with it.
China is like a junkie being forced into a rehabilitation program. But the government of Prime Minister Wen Jiabao only has itself to blame. When demand from the US and Europe collapsed during the last financial crisis, his government pumped around 4 trillion yuan (about €450 billion) into the economy, the biggest stimulus package in history, to boost the sale of PCs, television sets and cars. New motorways, airports and train lines were planned. China turned into a gigantic building site.
Local authorities ran up massive debts to stimulate the boom. That has lessened the central government's scope to cool the economy down. If interest rates are raised too sharply, the provinces won' be able to service their debts.
New York economist Nouriel Roubini, who predicted the 2008 financial crisis, fears that China could offload its surplus cement, steel and aluminium on world markets at dumping prices.
http://www.spiegel.de/international/world/0,1518,779008,00.html
on a fundemental basis China economy very strong
gaming a good sector
social housing a good sector
channel checks confirm fundemental demand for housing in empty cities good
this is a historic moment for USA jury out if they will pay as student of the market we watch closely
(notes from some Jefferies China analyst just now)
Remember, remember May 6 2010!
http://www.youtube.com/watch?v=C5WPOSb3oqs
remember Oct 1987
http://www.youtube.com/watch?v=XFn1G2goDQw
To whoever, how much manipulation do you think is there in silver. In other words, what do you think silver should be going for?
Silver is approximately 70% manipulation and should be priced somewhere between $25 and $200 an ounce.
Chilton, McGuire. The daily deluge of paper at 8:30 and into the close. Even better after the close. On Tuesdays before the COT report. They don't really give a damn about appearances anymore. Fractionally reserved. 80% of a years supply of silver shuffled from vault to vault in one day.
Silver vs. Goliath
So, OIL EXPERTS, when do we buy OIL? When it is $40 dollars a barrel? $30? WTF?
Oil controls and decides everything.
130 dollar Brent has destroyed it all. Now, destroyed, oil consumption will go off a cliff and drop the price. Any attempt to grow global economy will again spike oil, because of its scarcity.
Downsloping sawtooth pattern that is forever.
Where do you buy oil? PepBoys.
Don't worry when the dollar depreciates inflation in China will taper off. /sarcasm.
I hope China enjoys the downgrade and the inflation.
I mean, how does JPM feel with its tankers of EAD oil floating around the oceans at 60% the price it paid.
they feel like it might be a good idea to have someone scuttle them
thus the downgrade of insurance cos
http://punditkitchen.files.wordpress.com/2009/08/128951766455386470.jpg
And I was naive enough to believe this morning that the G7 would save us today.
ZH: 1740 G7: 0
Tyler, the new god.
Good form.
I hate to sound like a broken record. Try pulling the red curtain to see your future central planning fuck up.
IMF: Basel III Doesn't Prevent Lending Drying Up Following Further Crises
http://www.youtube.com/watch?v=IAW1Uh-3Hoo&feature=related
Seminar on Basel III - No comment needed.
http://www.youtube.com/watch?v=6oyKVZjb4rg&feature=related
http://www.icap.com/
so he prints, China gets more inflation, and if china crashes...global doomsday.
this is nuts
pork ain't coming down anytime soon
while in the past few weeks prices have come down substatnially due to the mass slaughter of piggies due to feed prices
it is because of that slaughter that there will be a shortage going into September and beyond driving prices even higher than they were prior to the slaughter
Just got a first print of the Bernank's speech. Entitled "eat your pea" it strikes a rather alarming tone. "hunger is healthy" and "i never did like your wife" are real stand outs. The Q & A should be fascinating.
Unfortunately, the Chairsatan will not speak tomorrow. All we get is a terse statement of the top decisions of the meeting. Minutes to follow weeks later, as well as the Jackson Corn Hole speech. So, if there is no coded message tomorrow about QE3--I am sure Tyler will volunteer his hermeneutic expertise--then you can expect the markets to plumet another 10%.
Fuck it, my wife thinks I'm delusional - but I'm buying more silver tomorrow.
My wife thought I was delusional in 2008. After 3 years of economic hell, she doesn't think that anymore. Your wife must be fairly insulated.
LET THEM EAT QE3!
...all aaah ..board! C P I ...CPI C P I ...CPI. Toot toot. http://www.youtube.com/watch?v=nJVJ02Hz8VY&feature=related
Depending on what camp you're from, I found this BIS piece working paper to be classified as' Laugh factory material.'
Weathering the financial crisis: good policy or good luck?
AUD 1:1 now down 1.8%
Silver up nicely in AUD.
Ha! AUD 0.9994
The S&P 500 monthly chart that forecast the crash:
http://bit.ly/x618
What a coincidence, its the 666th chart youve posted!
bring back the scary clown...
Damn, I hate these quick moves down. I need a slow move down, so my 3x daily bear ETF gets some compounding to work for me. Any guesses on an ultimate bottom, and timeframe? Weird that today was another 666 day.
Damn, I hate these quick moves down. I need a slow move down, so my 3x daily bear ETF gets some compounding to work for me. Any guesses on an ultimate bottom, and timeframe? Weird that today was another 666 day.
ha haa haa, not really. Why would seeing that number, 666, seem strange to anyone right about now? lol. http://www.youtube.com/watch?v=3xy4YNAXYqY&feature=related
Intervention time... 77.06
http://finviz.com/forex_charts.ashx?t=USDJPY
AUS 200
3781.50
3986.10
3852.50
3761.50
-204.60
-5.13%
Japan NI225
8657.50
9097.56
8787.50
8652.50
-440.06
-4.84%
Hang Sen 40
18965.00
20490.57
19294.00
18856.00
-1525.57
-7.45%
I am sure glad Obama gave that awesome speech this afternoon to inspire confidence in the worlds markets or things could be really bad! <sarc>
Hang Seng: just somebody pull the plug out. It sets a bad example to the world!
chairsatan or bust
kospi at 9%, brutal. markets have completely broken all tech supports. FOMC gonna have to go bannas to get this moving.
the aud has collpased.
And the hits just keep on coming. I feel like this is the straw that broke the camels back. Anyone else?
We're talkin 2.5% to 4% drop over other currencies. Is AUD a high beta stock or what?
Edit: That was meant to go just a little higher in the thread.
Perhaps they can put that oil back in the SPR
I sold my TZA late in the day on a belief that someone will do something tomorrow
Bernanke is as cool as a cucumber. He is going to let gold apreciate and then loan the shit out of it, easing all fears. It will be enough to stop the idiot liberals from understanding what is going on for a few more months or so, before a great war is started via false flag. He holds 14k tonnes, and he does not know what it is doing in his vault. Such bullshit. The dude is biding his time, and watching the world burn. Bernanke is one sick fuck.
he who has gold makes the rule?
Should I not be surprised with gold? Because I am.
Bernank won't do anything until late september or early october. Let the drama unfold.
There is no support under the markets. If he waits longer than a week you are looking at Dow 5k, and gold $2k. He will look like the biggest dumbass of all time if he lets that happen.
THE S&P 500 MONTHLY CHART THAT FORECAST THE CRASH...
http://bit.ly/x618
Won't a QE 3 make gold go higher and faster?
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