Big Mac Index Exposes Flawed Inflation Data
Japanese Rally Will End in Tears
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CHARLES HUGH SMITH: The Last Christmas in America? The end of work and the end of mass affluence: welcome to The Last Christmas in America (TLCIA). by GoldCore Gold Bullion
History May View ECB’s Draghi As “Currency Forger Of Europe” Today the London Bullion Market is closed for a national holiday. Friday’s AM fix was USD 1,666.50, EUR 1,329.16 and GBP 1,051.88 per ounce. Silver is trading at $30.91/oz, €24.77/oz and £19.62/oz. Platinum is trading at $1,550.00/oz, palladium at $647.90/oz and rhodium at $1,025/oz. Gold climbed $0.80 or 0.05% in New York on Friday and closed at $1,669.80. Silver surged to [...] From Zero Hedge: Just after the GDP number was released, we joked that the only opinion on the sub-standard Q2 U.S. economic growth that matters is that of Fed uberchairman Jon Hilsenrath… Turns out we were not joking: the Fed mouthpiece has just released his take on the GDP. His bottom line: Inflation Data Won’t Constrain Fed. In other words, the Fed ignores the modest beat to expectations, and has given the green [...]
From Jon: GDP Highlights: Inflation Data Won’t Constrain Fed A few quick thoughts on GDP report out this morning: Key price indexes are uniformly running below the Federal Reserve’s 2% objective. The personal consumption expenditures price index was up 1.6% from a year ago, thanks in part to falling gasoline prices. This is the price index that the Fed watches most closely, more so than the consumer price index produced by the Labor [...] By The Energy Report The Gold Report: John, at the recent Casey Research Recovery Reality Check conference you described the economic recovery heralded by the Obama administration as an illusion based largely on skewed inflation data. Can you walk us through why, based on your calculations, a recovery is impossible? John Williams: We can start with the gross domestic product (GDP), which like most economic reports is adjusted for inflation. If you take inflation [...] Wolf Richter “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.” John Maynard Keynes penned these [...] Wolf Richter www.testosteronepit.com “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.” John Maynard Keynes penned these words after World [...] There is no free-lunch – especially if that lunch is liquidity-fueled – is how Gluskin-Sheff’s David Rosenberg reminds us of the reality facing US markets this year and next. As (former Fed governor) Kevin Warsh noted in the WSJ “The ‘fiscal cliff’ in early 2013 – when government stimulus spending and tax relief are set to fall – is not misfortune. It is the inevitable result of policies that kick [...] By Michael Kitchen, MarketWatch LOS ANGELES — For a second week running, Chinese economic data will take center stage for Asia markets, with investors waiting to see whether the numbers support further monetary easing measures from Beijing. This past Thursday, China reported that consumer inflation eased slightly to 4.1% year-on-year in December, down from November’s 4.2%, and well below the above-5% level earlier in the year. The result, some [...] by Charles Hugh Smith from Of Two Minds 2011: The Last (Debt-Consumerist) Christmas in America The end of debt-based affluence: welcome to The Last Christmas in America (TLCIA). Almost 35 years ago, as unemployment rose toward 10%, the January 1975 cover of Ramparts magazine blared: The End of Affluence: The Last Christmas in America. (TLCIA) The article wasn’t referring to the religious celebration; it was referring to the postwar concept of Christmas as the frenzied, [...] by GoldCore Gold to Top $2,000 on Central Bank Buying: Chart of the Day Gold is trading at USD 1,675.30, EUR 1,214.20, GBP 1,062.30, JPY 129,036.00, AUD 1,634.90 and CHF 1,503.70 per ounce. Cross Currency Table Gold is marginally higher in most currencies today and continues to [...] by Vincent Trivett and Robert Johnson Businessinsider As the world continues to change, the only predictor of the future is where we’ve been. With that in mind, we have taken trends from 2000-2010 and extended them out to get a feel for what the planet could be like if the following two decades are like the last one. Some of these patterns will likely change over the years, but as with the [...] From Gold Core Gold Robust Over $1,500 As Stagflation Deepens And Greek Default Risks Eurozone Break Up And Financial Contagion Gold is trading at $1,517.80/oz, €1,051.33/oz and £925.09/oz. Gold is tentatively higher this morning with the British pound, yen, Swiss franc and dollar showing weakness. Greek German 10 year bond yields have surged to euro era record highs and the Greek 10 year bond has surged to a [...] From GoldCore India, Indonesia, China and Wider Asia Buy Physical Gold and Silver on Dip as Stagflation Threatens Gold and silver have extended their recovery and may be headed for the fourth day of gains due to the continuing European sovereign debt crisis, Chinese inflation (+5.3%) and the real risk that rising oil and commodity prices are leading to an inflation spiral internationally and stagflation. Cross Currency Rates German [...] Pro: China’s Hot Inflation Drives Gold to $2200 http://www.cnbc.com/id/42596474Chatter on the Street Thursday had everything to do with just how high inflation fears could drive commodities especially after new data leaked onto the market. Although Beijing won’t release official inflation data until Thursday evening (New York time), the advance numbers were hot. According to Hong Kong’s Phoenix TV, citing an unnamed source, China’s annual rate of inflation in [...] April 15 (Bloomberg) — Gold gained to a record and silver climbed to the highest level in 31 years as inflation in China accelerated more than forecast, underscoring the challenge that central bankers worldwide face in combating rising prices. Immediate-delivery bullion, which has rallied every year since 2001, gained as much as 0.4 percent to $1,479.35 an ounce and was at $1,476.20 at 10:32 a.m. in [...] by Mike “Mish” Shedlock, Global Economic Trend Analysis In an unexpected move to curb soaring inflation China hiked interest rates for the 4th time since October. Premier Wen noted a threat to social stability and stated “Exorbitant” house price increases in some cities are a top public concern. Please consider China Raises Interest Rates to Counter Inflation Pressure China raised interest rates for the fourth [...] From WSJ: By Matt Phillips It’s always interesting to hear a little bit about what the markets watchers at Goldman Sachs are hearing from their well-heeled clients. Comments from David Kostin suggest that the market is most concerned about what change in stance at the Fed will mean for the stock market: Foremost among the concerns expressed by equity fund managers during our recent meetings is the risk of [...] by ZH Just out from Jan Hatzius 1. With the first quarter now behind us, we have downgraded our Q1 GDP estimate to 2.5% from 3.5%. By itself, that’s not a big deal. Most indicators other than those that happen to go into the GDP bean count—in particular, virtually all business surveys and labor market indicators—continue to look solid and are probably a more accurate guide to the economy’s [...] by ZH It was a very data heavy week but in the end the important macro releases provided little new information as the majority came in close to expectations. That was certainly true for the US ISM and payrolls. Business surveys in the rest of the world were at the margin a touch weaker as well but coming from very elevated levels. Inflation numbers were generally [...] by ZH Chasing all the fluttering glow in the dark swans over the past month has put some of the key issues facing the US economy on the backburner. But just like today’s surging inflation update in the UK confirmed, there is only so long that any given crisis can be used a distraction from the real problems at hand. And here is where we stand: per [...] by ZH Jan Hatzius is the bellwether of the sellside economist crowd. When he was bearish (2009), most were bearish, when he turned bullish (early half of 2010), everyone else followed suit. Then he turned bearish again (early August 2010) and convinced his friend and former co-worker Bill Dudley to launch QE2. Then, in December, he turned very bullish again. And now we are here. We [...] From GoldCore Precious Metals Rise Immediately on Higher than Expected UK Inflation Silver and particularly gold rose sharply on the release of the higher than expected UK inflation data. It showed that UK inflation quickened to 26 month highs at 4.0%. Currency debasement and higher food and energy prices are leading to an inflation surge in both developed and emerging markets. Gold in British Pounds – 1 Day [...] Via Pension Pulse. The December rally may be reaching its climax, with just two weeks to go before Santa Claus makes his midnight run. Dwindling volume, excess optimism, and history all point to a stock market that could be running out of steam. Investors appear to have grown complacent as the CBOE Volatility Index, or VIX .VIX, has fallen to levels [...] 1) Treasury takes $1.6 billion loss on Chrysler loan “WASHINGTON (AP) — The Treasury Department said Monday it will lose $1.6 billion on a loan made to Chrysler in early 2009. Taxpayer losses from bailing out Chrysler and General Motors are expected to rise as high as $34 billion, congressional auditors have said.” ………………….1A) Chrysler loan loss may be pebble on road to $34 billion taxpayer hit 2) Senate rejects $400 [...] |
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