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Tag Archives: inflation
Lumber: Scary-Crazy Inflation Now Gets Passed On. But These WTF Price Spikes Cannot Last
Lumber: Scary-Crazy Inflation Now Gets Passed On. But These WTF Price Spikes Cannot Last Irrational behavior by buyers confidently betting on being able to pass on that irrationality to their customers. It works until it doesn’t. Lumber futures on Chicago Mercantile Exchange currently trade at a record high of $1,610 per thousand board feet, having […]
Investors Do Not See “Transitory” Inflation
Investors Do Not See “Transitory” Inflation The Federal Reserve and European Central Bank repeat that the recent inflationary spike is “transitory”. The problem is that investors do not buy it. Inflation is always a monetary phenomenon, and this time is not different. What central banks call transitory effects, and the impact of supply chains are not the real drivers […]
How Costco Is Masking A 14% Price Jump With Shrinkflation
How Costco Is Masking A 14% Price Jump With Shrinkflation The oldest trick in the retailer book is back. We have previously written about shrinkflation – the “creative” masking of higher prices whereby retailers sell a materially lower amount of products for the ‘same’ price, covering up what is often a significant price increase on […]
Inflation Jumped by 3.8% in Q1, “Real GDP” Rose 1.6%, Dragged Down by Record Trade Deficit and Drop in Inventories
Inflation Jumped by 3.8% in Q1, “Real GDP” Rose 1.6%, Dragged Down by Record Trade Deficit and Drop in Inventories Even the Fed’s repressed inflation measure without food and energy rose 2.3% annual rate in Q1. The US economy, as measured by inflation-adjusted GDP, grew by 1.6% in the first quarter from Q4 2020, according […]
The Grocery Price Shock Is Coming to a Store Near You
The Grocery Price Shock Is Coming to a Store Near You (Bloomberg) — Corn, wheat, soybeans, vegetable oils: A small handful of commodities form the backbone of much of the world’s diet and they’re dramatically more expensive, flashing alarm signals for global shopping budgets. This week, the Bloomberg Agriculture Spot Index — which tracks key farm products […]
Rabo: We Are Edging Closer To A Biblical Commodity Price Increase Scenario
Rabo: We Are Edging Closer To A Biblical Commodity Price Increase Scenario We Need Some Serious Remodelling Yesterday’s Daily saw me float the model hypothesis that the Fed would like everyone to have all their money in stocks, so they would have a practical mechanism for inflating and deflating the economy above and beyond the […]
Why Global Inflation Is About To Go Into Overdrive
Why Global Inflation Is About To Go Into Overdrive If you think inflation is already blistering hot – as most companies and survey respondents clearly do – and the worst case been largely priced in, with little inflationary upside left, think again. As Bloomberg notes, last week saw the Bloomberg Agriculture Spot Index rise by the most […]
Monetary Pumping and Resources
MONETARY PUMPING AND IDLE RESOURCES As a result of the recent strong stimulatory policies employed by the US government and the Fed, most commentators are of the view that the risk of a deepening slump in the US economy on account of the COVID-19 pandemic has now receded. Some other commentators are not so certain […]
A dangerous misunderstanding
A dangerous misunderstanding How much money should there be in the world? It is an interesting question; to which, at any time, there is a correct answer that is unknown to anyone. It is the amount at which money is able to perfectly perform its two key functions – being a medium of exchange and a store of value. […]
It’s time to start thinking about inflation
It’s time to start thinking about inflation In the year 215 AD, the young Roman Emperor Caracalla, then just 27 years of age, decided to ‘fix’ Rome’s perennial inflation problem by minting a brand new coin. Caracalla’s predecessors over the previous several decades had ordered an astonishing debasement of Roman currency; the silver content in […]
Uh Oh: Consumer Price Inflation Heating Up Fast
Uh Oh: Consumer Price Inflation Heating Up Fast Anna Shvets Back in September 2020, we reported on Fed Chairman Jerome Powell’s inability to see a “hidden” inflation offset in energy that camouflaged the rise in overall inflation. That “hidden” inflation offset has now vanished, and inflation appears to be heating up quickly. Anyone can see it. Robert Wenzel wrote […]
Inflation, real interest rates revisited
Inflation, real interest rates revisited Gold prices ticked higher on Tuesday after inflation data showed US consumer prices rose in March for the fourth straight month and inflation hit its highest level in 2.5 years. Gold for June delivery climbed $8.50, or half a percent, to $1,741.20 an ounce, and spot gold at time of […]
Unwelcome Inflation Heats Up in Mexico, Brazil, and as Always in Argentina
Unwelcome Inflation Heats Up in Mexico, Brazil, and as Always in Argentina Brazil’s central bank struck back with shock-and-awe rate hike. Mexico’s central bank faces tough spot after big hit to economy. Argentina’s inflation exceeds 42%. Around the world, there has been massive fiscal and monetary stimulus, an unprecedented growth in government-guaranteed lending, an explosion […]
Producer Prices Blow Out
Producer Prices Blow Out And companies have been reporting that they’re able to pass on those surging costs. So here we go with inflation. Inflation that producers are experiencing is now blowing out. The surging input costs and the ability to pass on those higher input costs that have been reported by company executives as […]
Get Ready for a Wild “Base Effect”: Highlighted Forcefully when it Suits Them, as with Inflation; Silenced Forcefully When it’s Awkward, as with Corporate Earnings
Get Ready for a Wild “Base Effect”: Highlighted Forcefully when it Suits Them, as with Inflation; Silenced Forcefully When it’s Awkward, as with Corporate Earnings We’re going to be awash in huge and even absurd percentage-growth numbers. The numbers are starting to crop up everywhere: For example, new vehicle sales in March jumped nearly 60% […]
