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Thank God European Inflation Is Under Control: Charting Italian CPI

Tyler Durden's picture




 

The ECB cutting rates to preserve zee price stabeeleetee? Sure, great idea. What about the one and only actual mandate: inflation. Well, here is what it looks like in Italy. Thank god it is under control. In other news, the ECB is now on collision course with reality and Germany, having used up its last remaining bullet.

Source: Bloomberg

 

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Thu, 11/03/2011 - 09:12 | 1840701 GeneMarchbanks
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How's that Goldman headquarter in Milan doing?

Mario sure does love 'his' people...

Thu, 11/03/2011 - 09:19 | 1840776 defn8Dog
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The ubiquitous Goldman... in at the start of the Euro crisis, former employees Corzine, Draghi, the list will go on.  The Squid Overlord. 

Thu, 11/03/2011 - 09:50 | 1840992 HoofHearted
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They need to talk to the Bernank. If they take out unnecessary items like food and fuels, and only consider the price of hosuing and of iPads, voila...the situation is handled! We don't see no stinkin' inflation!

Thu, 11/03/2011 - 10:25 | 1841195 whatsinaname
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I see LOTS of MSM articles these days harping on the shale NG boom in N Dakota, Eastern Ohio, Pennnsylvania and Texas. What is the potential impact of such a hypothetical boom on gasoline prices in the US, the USD and economy in general ? Is that the panacea for all our ills ? Wonder if some oil experts would care to comment..

Thu, 11/03/2011 - 09:27 | 1840854 The Axe
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UK inflation only 5.2 percent

Thu, 11/03/2011 - 09:40 | 1840937 Bicycle Repairman
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The "solution" will be inflation in the range of 2% to 10% every year until the situation clears.  Outrage will be met by lies, shrugs, blank stares and state-sponsored violence.

Thu, 11/03/2011 - 09:10 | 1840707 AngryGerman
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Underage hookers expensive. Poor bunga. hell be glad he had his ass hair transplanted onto his head a couple years ago already

Thu, 11/03/2011 - 09:10 | 1840708 pendragon
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inflation is a lagging indicator. the eurozone is going to the ice age

Thu, 11/03/2011 - 09:16 | 1840743 Abitdodgie
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With the north atlantic drift almost stoped they will be in an ice age, starting this year.

Thu, 11/03/2011 - 09:48 | 1840985 tmosley
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Last I heard, it was actually speeding up.

Thu, 11/03/2011 - 11:54 | 1841787 UP Forester
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Gee, I haven't heard anything about it since 95% of the UK was snow-covered last December, Paris and Berlin airports were snowed-in, and the Alps had record snowfall.

Must be forecasting a warm winter, judging by the nice weather on France's Riviera....

Thu, 11/03/2011 - 09:29 | 1840871 DeadFred
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How does one say 'transitory' in Italian?

Thu, 11/03/2011 - 09:47 | 1840960 hedgeless_horseman
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Transitorio.  It is most often combined with the noun, fedeltà, meaning fidelity, and used to describe marriage, financial contracts, treaties, and price quotes.

Thu, 11/03/2011 - 09:11 | 1840710 Overflow-admin
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Inflation bitchez!

Thu, 11/03/2011 - 09:11 | 1840711 Irish66
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I have headline fatigue

Thu, 11/03/2011 - 09:33 | 1840894 Schmuck Raker
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There's a Blue Pill for that.

Thu, 11/03/2011 - 09:46 | 1840975 SheepDog-One
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Ignorance is bliss, just look at permabulltard posts!

Thu, 11/03/2011 - 09:12 | 1840715 Cdad
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Excuse me...maybe I'm stupid...but doesn't the rate cut reverse the entire long Euro trade?  And doesn't that lead to a massive US dollar rally?  And doesn't that mean that the response this morning by WTI is...ummm....wrong?  And doesn't this mean that the DOW, with all of its weak dollar benefactors are...ummm...now in trouble on the FX component of their earnings?

In short, isn't the entire market reaction to the news that the ECB is now abandoning its one and only mandate is...ummm...wrong?

Just asking...

Thu, 11/03/2011 - 09:14 | 1840733 Irish66
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UUP

Thu, 11/03/2011 - 09:19 | 1840778 Cdad
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DTO...just as soon as the delerium tremors commence.  Better leverage here.

Thu, 11/03/2011 - 09:24 | 1840825 youngman
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I can´t understand why Gold and Silver have not trippled this last month with all the news.....the paper money is toast...anyway I look at it...its print print print..

Thu, 11/03/2011 - 09:17 | 1840734 trampstamp
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You would think since when they hiked the last 2 times the Euro rallied massively. I could only think this good for the dollar and bad for stocks. Take a shit MF! Fucking goal post movers!
Thu, 11/03/2011 - 09:20 | 1840790 Cdad
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Much more than "you would think."  Seems like a lock to me.  That Euro should tank...albeit not before criminal syndicate Wall Street bankers convert on their dumb ass equity positions taken yesterday.

Thu, 11/03/2011 - 09:23 | 1840824 Hansel
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ECB is at 1.25%, Fed is at 0% until 2013.  I'm not seeing "a lock," but then I don't like either one.

Thu, 11/03/2011 - 09:15 | 1840740 GeneMarchbanks
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No. You see, the Chinese are now buying the €. Printing = good. Repeat as necessary.

Thu, 11/03/2011 - 09:20 | 1840800 Cdad
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Umm...the Chinese have already said, "No thank you.  We are not dumb money." [even though they are the ultimate dumb money]

Thu, 11/03/2011 - 12:30 | 1841965 FeralSerf
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What they say and what they do is not always the same thing.

Thu, 11/03/2011 - 09:15 | 1840742 reading
reading's picture

two words:

virtual reality

The markets (every one of them this morning) look like a crack whore on their last hit. But that's ok I am sure someone will hook them up to a drip to keep the high going.

Thu, 11/03/2011 - 09:21 | 1840807 Cdad
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We should see major delerium tremors today...as soon as that last hit wears off.

Thu, 11/03/2011 - 09:47 | 1840980 SheepDog-One
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We SHOULD, but will we?

Thu, 11/03/2011 - 09:16 | 1840744 sabra1
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once the transfer of wealth is complete, will the markets crash, so those with all the big bucks can swoop in and claim it all!

Thu, 11/03/2011 - 09:21 | 1840808 Cdad
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Correct.

Thu, 11/03/2011 - 09:42 | 1840950 LawsofPhysics
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Yes, same as it ever was.  The game is rigged, don't like it?  DON'T play.

Thu, 11/03/2011 - 10:06 | 1841077 LongBallsShortBrains
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I can't help but play.... I'm like that retarded kitten that won't leave it alone because it is MOVING. stupid kitty.

Thu, 11/03/2011 - 12:34 | 1841980 FeralSerf
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As long as you're breathing, there's no way to not play.  You may not consciously play, but play you must.  That's a fact of life for livestock.

Thu, 11/03/2011 - 09:19 | 1840747 qussl3
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The 2nd largest CB is no longer tightening, yield spread still in their favor.

Positioning still very short EUR.

EUR most likely rises.

I so want to be wrong tho, cos that would mean cheaper PMs.

Thu, 11/03/2011 - 09:23 | 1840819 Cdad
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I think you will get cheaper PMs...those priced in dollars.  Just as think the WTI reaction is wrong, so too is the GLD knee jerk wrong.

Thu, 11/03/2011 - 09:29 | 1840865 qussl3
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I think so too, putting my money where my mouth is.

EUR is floundering abit now, but i seriously doubt a collapse to the 1.20s or below that everyone is so convinced off.

It would take a French dwngrd or DMs making a reappearance to smack the EUR, not with Banana Ben and his rate pledge.

I'm buying all PM dips, but the volatility is going to be epic.

Fun times.

Thu, 11/03/2011 - 09:37 | 1840926 topcallingtroll
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It was reported on TV that gold is not backed by the Fed.

Everyone knows to run to the dollar when scared, cuz it is backed by the government.

Thu, 11/03/2011 - 09:17 | 1840756 Captain Benny
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Yes, you're exactly right which is why I'm scratching my head as well.  The only thing I can think of is "low volume melt up" from HFTs

Thu, 11/03/2011 - 09:23 | 1840823 Cdad
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Half life of a Mayfly, I would think.

Thu, 11/03/2011 - 09:17 | 1840765 Abitdodgie
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You would think so ,but this is THE NEW market, so all news is bullish

Thu, 11/03/2011 - 09:24 | 1840826 Cdad
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...until it isn't.

Thu, 11/03/2011 - 09:33 | 1840892 DeadFred
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I agree. The SnP pushed up to the 50% retrace of the recnt drop and stalled. I'll never again be surprised by anything the markets do but I'm expecting they realize the error of their ways. Time now to take advantage of it.

Thu, 11/03/2011 - 10:00 | 1841031 IAmNotMark
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I think the reason is:  Insanity.  Total insanity.  The market is in a straight-jacket, crouched in the corner, babbling and giggling, mindless and souless eyes watching the events of the world.

But I could be wrong.

Thu, 11/03/2011 - 09:13 | 1840725 Captain Benny
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The S&P500 melt up resumes for absolutely no good news.  

Thu, 11/03/2011 - 09:30 | 1840872 azzhatter
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How about that 397,000 jobs print??   Green shoots

Thu, 11/03/2011 - 09:32 | 1840885 jay28elle
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...phewy, don't need no stinking good news for a good melt up.  No reason to start now.

Thu, 11/03/2011 - 09:14 | 1840732 qussl3
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DMs coming back would really spice up this party.

Thu, 11/03/2011 - 09:16 | 1840736 Saxxon
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Stink bid in for more SPXU at premarket low.  My SPXU limit sell filled last night 7:59 EST, like a gift from Santa and the Tooth Fairy . . . luckiest trade all year.

Thu, 11/03/2011 - 09:19 | 1840786 drivenZ
drivenZ's picture

good perspective on the cut...

 

PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK + CO, NEW YORK 
"In terms of impact, the move is more symbolic than anything as moving rates from 1.5 percent to 1.25 percent isn't going to move the needle for a region that is suffering from structural economic stagnation and too much debt. "Psychologically though, markets love it just as it loves every easing move by the Fed. Cheap money, party on." 

Thu, 11/03/2011 - 09:21 | 1840797 Schmuck Raker
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The chart implies that Italy actually NEEDS a market crash.

Draghi's just doing what's best...

Thu, 11/03/2011 - 09:21 | 1840802 Archimedes
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What they should do is lower rates to encourage borrowing. Cheap money is great for an economy! </sarc>

Thu, 11/03/2011 - 09:22 | 1840813 Mike2756
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They're probably celebrating the 2.4% pay cut due to the bernanks print fest.

http://www.sfgate.com/cgi-bin/article.cgi?f=%2Fc%2Fa%2F2011%2F11%2F03%2FBANI1LQ2HO.DTL&tsp=1

Thu, 11/03/2011 - 09:27 | 1840849 pragmatic hobo
pragmatic hobo's picture

what are the unintended consequences of lower eurusd?

Thu, 11/03/2011 - 10:18 | 1841138 qussl3
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Cheaper gas.

Really.

 

Thu, 11/03/2011 - 09:35 | 1840910 Rynak
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Of course, that chart is missing 50% of the relevant data. The other 50% being the inofficial "reality-divisor".... which right now depending on country is between 2.0 - 5.0.

Thu, 11/03/2011 - 09:37 | 1840923 Durchbruch
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Indeed those data reflet the 1 % surge on VAT taxation. It's fiscal inflation to repay italian treasuries. 

Thu, 11/03/2011 - 09:44 | 1840963 YesWeKahn
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The Mafia will handle that in a proper manner.

Thu, 11/03/2011 - 10:04 | 1841062 letitgo
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Despite the fact that ZH (and everyone else) keeps saying the EZ economy is toast and heading towards deeper recession, the ECB is still at 1.25% compared to much lower in all of the US, UK, Japan and Swtzerland.  That would seem to suggest they are sticking to their price stability mandate much more than the others. In the circumstances only a drop of 100 odd basis points would have raised the presumption that they are abandoning their price stability mandate.

A graph showing the lagging indicator of inflation in one of many EZ economies, Italy, does nothing to show that they've given up their price stability mandate.  Last remaining bullet used?  With a 25 basis point drop to 1.25%, I see at least 5 bullets remaining in the barrel. 

Very selective and simplistic journalism not too dissimilar from the mainstream journalism ZH used to be so good at bringing to account.  Tylers, this alarmist and simplistic reporting confirms a recent ZH trend more focused on pushing an agenda than analysing the facts correctly.  Standards are sadly dropping at ZH right when we're in need of quality, objective analysis of what's going on -- a real shame.

Fri, 11/04/2011 - 20:25 | 1847134 Rynak
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The only shame here, is the existance of your account, sockpuppet.

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