Apocalypse? US Inflation Spikes!!! JPMorgan Slashes Q2 GDP, Gas Prices Have Spiked, And People Are Tweet-Freaking Out About It, And Portugal’s Borrowing Costs Are Blowing Out Today
Gas Prices Have Spiked, And People Are Tweet-Freaking Out About It
Gas prices climbed three cents overnight and are up about seven-and-a-half cents on the week, according to AAA, and people are not happy.
Gasoline prices are tied to Brent oil, which has climbed about 7% since June 30 on unrest in Egypt and stabilizing demand.
Here’s what people are saying on Twitter:
Check it out:
— The Town Talk (@TownTalkDotCom) July 12, 2013
Gas prices jump 50 cents in less than a week?
— Dan Lawson (@cardzfan1) July 12, 2013
Ugh… Gas prices are up 25c in just over a week. Went up 11c this morning alone.
— Austin (@austink89) July 12, 2013
— Anna B. (@AnnaGraceNoel) July 12, 2013
Welcome to Terre Haute. Where the gas price raises $.50 overnight and where you get railroaded 1000 times in one day!
— Dev Harlan (@DevyBby123) July 12, 2013
— Renee (@MolinaFan4) July 12, 2013
These gas prices are ridiculous. The government just don’t care if they are price gouging!!
— William Ferguson (@Golfnutbill64) July 12, 2013
Price of Gas going up this weekend!!!!!!!!!!!!!!!!!!!!!!
— Jandro BLACKFRAME (@JandroBLKFRMZ) July 12, 2013
Gas just keeps creepin up in price.
— Brittany Felts (@brittanylovesit) July 12, 2013
Inflation Rears Its Head in June as Producers Hike Prices
U.S. producer prices rose more than expected in June, pointing to an apparent increase in inflationary pressures that could make the Federal Reserve more comfortable about reducing its monetary stimulus.
The Labor Department said on Friday its seasonally adjusted producer price index increased 0.8 percent last month.
A Reuters survey of economists had forecast prices received by the nation’s farms, factories and refineries rising 0.5 percent last month.
Portugal Has Opened Pandora’s Box, And Borrowing Costs Are Blowing Out Today
The chart below shows the yield on Portugal’s 10-year government bond. Today alone, it’s up a massive 55 basis points to 7.24%, the highest level since December.
The country has descended into political crisis over the implementation of austerity measures designed by troika creditors at the EU, IMF, and ECB.
This morning, it’s been reported that the opposition is calling for a renegotiation of the terms of Portugal’s bailout package.
Portugal’s main opposition Socialists want to renegotiate the terms of the country’s €78 bln bailout.
— Jamie McGeever (@ReutersJamie) July 12, 2013
Business Insider/Matthew Boesler, data from Bloomberg
JPMorgan Slashes Q2 GDP By Half To 1%
Following closely on the heels of Barclays significant downgrade, JPMorgan has cut its forecast for second-quarter GDP by 50% to a mere 1% growth (from their previous 2% expectation). Citing downside surprises to inventories, they note that “Fed officials won’t be thrilled about easing back on stimulus in September in the face of back-to-back one-handles on GDP growth.” Have no fear tyhough, as the rest of the year prmises to hockey-stick right back up to 2.5% (and 2.7% in 2014).
Fed’s Plosser Admits Fed Was Responsible For Last Housing Bubble, Doesn’t Want To “Create Another”
The “mutinying” half of the Fed – that which the FOMC minutes indicated wanted an end to QE by the end of 2013 – is not going to take Bernanke’s Wednesday steamrolling lying down. Enter Charles Plosser, who becomes a voting member next year:
- PLOSSER SAYS FED SHOULD HALT QE BY END OF THIS YEAR
Good luck there. But here is the punchline:
- PLOSSER SAYS ‘WE DONT WANT TO CREATE ANOTHER HOUSING BOOM’
Finally, someone from the Fed admits it was Greenspan’s and Bernanke’s ruinous cheap money policies that created the last housing bubble. As for preventing another housing “boom” or bubble as it is popularly known, we have two words: too late.
“Although house prices are rising, I don’t see any evidence of a bubble.”
– Bernocchio, 2006