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Import Prices Have Largest Drop Since October 09
MoM import prices met expectations with a significant drop and its largest drop in almost 2 years (after the prior drop was revised up to unchanged) but year-over-year saw import prices drop for the first time in 32 months. It seems energy prices were largely responsible as petroleum was down 4.2% MoM - the largest drop since May 2010. The price index for import fuels declined 3.9 percent over the past year after rising 43.7 percent for the year ended May 2011. The decline over the past year was the largest 12-month drop in fuel prices since the index fell 14.2 percent for the October 2008-09 period. Imports ex fuel inched lower -0.1% in May but despite this drop, imports prices for non-fuel imports rose 1.0% YoY. So it seems there is a little here for everyone but not enough for anyone.
Chart: Bloomberg
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Finally some good news. It needs to go down even more. Bring on deflation already...
Exactly, then finally savers can win for once
For starts bump the intrest rate to 8% and then add 2% every two years.
Win what? A free pair of homeless people for your lawn?
Who cares if my house has been broken into twice this week, I got a deal on rutebagas!
If someone has surplus such that they can save, aren't they already "winning" by definition?
I'm hoping this will entail cheaper guns and ammo... although I doubt we return to the days where $500 could get you a decent AK...
Source: http://www.marketskeptics.com/2008/12/how-deflation-creates-hyperinflati...
"In 1920, Germany experienced a deflationary collapse, with the average citizen finding it harder and harder to get enough money for necessities. Fearing a collapse that would throw millions of workers out on the street, the German government desperately printed money in an attempt to re-inflate the economy. During this period, despite the government's money printing, the mark actually gained in value against foreign currencies, so that prices of imported goods fell by some 50%."
And We all know what happened after that
Sound Familiar??
with gold at 1600 and oil down significantly it makes total sense that these mining companies suck so bad. and by this I mean the opposite.
Screw mining companies, buy physical.
Aggregate demand collapse... everywhere I look.
Needs more debt...
Most people are broke. $4.00 gas crushed what was left. It is 3.35 here now and traffic has still not returned.
Still over 5$ a gallon in Canada... and even higher in Europe... you bet those greedy governments won't cut the taxes on gas when the economy takes a dive...
I see....debt people.
I see....dead people.
http://www.reuters.com/article/2012/06/12/iran-oil-sinopec-idUSL3E8HC39L20120612
What's Mandarin for "I fold."? Or is this just the shrewdest big-balls short in history?
Major contraction in GDP dead ahead.
Looks like an inverted head and shoulders pattern forming. Hyperinflation, here we come!!!
That's really good news as it presumably lowers the price of thingamajigs.
Every little place I go,
Every little thing I throw,
I see the same dough!!!!!!!!!!
Deflation, "it" is coming, bitches.
http://t.co/8yvMt08m
Every other city we go,
Every other video, (It's all about you)
No matter where I go,
I see the same hoe!
~2pac
But, but, but. . .
I was promised hyperinflation years ago. . .
If you study gasoline prices in the USA, you will observe that their highest annual price normally occurs in June with the full onset of the "summer driving season" (Northern Hemisphere). This year is the opposite with prices steadily falling for about the last six weeks. I just saw $3.12 per gallon for the cheap stuff here away from the coasts. Toss in the European slowdown, Faceplant, failure to run the customary budget surpluses around "tax season" (April/May), increasing unemployment/underemployment and this sure looks like a relapse into the Great Recession to me.
I'm not worried because I know that Congress and the President will devise some healtful economic measures which will restore us to full employment and get the factories humming again.
Hope you didn't have a mouthful of something while reading that last line as you probably don't any more.
After the USD held its' purchasing power almost perfectly without a central banking system from 1813 - 1913 right through a massive civil war, Lord Keynes has since brainwashed generations of economists into believing prices must only go up, productivity gains be damned. That $1.00 from 1913 now buys 4.5 percent of what it did when the Federal Reserve Bank was tasked with protecting the USD. The US economy alternated between growth/price inflation and recession/price deflation periods just fine without a central bank and with a gold standard. The bankers who had lusted for control since Alexander Hamilton finally got their wish and the Supreme Court turned a blind eye using the Commerce Clause fig leaf during the FDR administration. The purchasing power of the US dollar has been following the same downward arc as an airplane tipping over into a plummet.
It's time for a jubillee/massive deflation from these artificially inflated price levels.