Wednesday, July 16, 2014

There Is No Inflation IF...

You don't eat turkey, eggs, or pork or fruits and vegetables.

According to the latest data released today by the Bureau of Labor Statistics, year-over-year gains in some food products at the producer level have been truly spectacular.

Eggs for fresh use are up 33.9%.

Pork is up 28%.

Processed turkeys are up 20.4%.

Dairy products are up 10.7%.

Fresh and dry vegetables are up 8.4%/

Fresh fruits and melons are up 7.5%.

Producer prices overall look to me like they are just about to breakout to the upside, after a significant decline during the middle of the Great Recession.


  1. No inflation except in food, housing, know, the shit we NEED to live!?!

    Fuck the Federal Reserve.

    1. the price signal has been muted...for now:

      Insider Trading and Financial Terrorism on Comex

      The big hedge funds primarily trade gold futures using computers and algorithm programs. When they buy, they set stop-loss orders which are used to protect their trading positions on the downside. A “stop-loss” order is an order to sell at a pre-specified price by a trader. A stop-loss order is automatically triggered and the position is sold when the market trades at the price which was pre-set with the stop-order.

      The bullion banks who are members and directors of Comex have access to the computers used to clear Comex trades, which means they can see where the stop-loss orders are set. When they decide to short the market, they start selling Comex futures in large amounts to force the market low enough to trigger the stop-loss orders being used by the hedge fund computers. For instance, huge short-sell orders at 2:20 a.m. Monday morning triggered an avalanche of stop-loss selling, as shown in this graph of Monday’s (July 14) action (click on graph to enlarge):
      As shown on the graph below, on Tuesday, July 15, another flash-crash in gold was engineered in the middle of Janet Yellen’s very “dovish” Humphrey-Hawkins testimony. Contracts representing 45 tonnes of gold were sold in 3 minutes, which took gold down over $13 and below the key $1300 price level. There were no apparent news triggers or specific comments from Yellen that would have triggered a sudden sell-off in gold — just a massive dumping of gold futures contracts. No other related market (stocks, commodities) registered any unusual movement up or down when this occurred: