U.S. producer prices rose by a bigger-than-expected 1.2% in
July, the Labor Department reported Tuesday, driven higher by
prices for energy, food and other products. Economists surveyed by
MarketWatch were looking for an increase of 0.3% in July. Excluding
food and energy, producer prices rose 0.7% in the month, which was
also higher than expected. In July, energy prices rose 3.1% and
food prices climbed by 0.3%
Posted by dylan398 on 19th of Aug 2008 at 09:10 am
the reason I'm talking deflation is when I see highly
inflationart news ala CPI today and gold sells off...it is only
pre/mkt....lets see what transpires today..
Posted by hornsant on 19th of Aug 2008 at 09:45 am
I will also consider the possibility that the mkts have been
discounting the poor numbers in anticipation and yesterday's sell
and today's pre mkt sale have done the job. Will wait and see if
the DOW holds 11400.
they may or may not, in the short to medium term, market may
perceive this as higher rates and FED fighting inflation. Such
perception may cause further pressure. Such pressure may cause more
unwinding and de-leveraging, such action may dessimate any
portfolio that tries to ride any probable massacre out.
It is, IMHO, in the interest of all officials for the commodity
market to break. If they smell blood, they'll go for the kill.
Posted by treid4dou on 19th of Aug 2008 at 09:07 am
USDollar going in the short term, up, is just another
manipulation thru currencies arrangements between
ECB/FED.......Deflation is a needed result of major bubbles
bursts.....and lets face it.....they are well needed......
even commodities are adjusting down....so nothing will be going
up...not even the dollar.....Some are saying we will retrace to the
2002 low...where the bullish counter trend rally started.......as a
failed new high resulted......its all a TA reversal
down.....economy wise....back to a starting point where bubbles
bursts will carry us back to where they did not exist....
Posted by treid4dou on 19th of Aug 2008 at 09:18 am
they will behave on 2 premises: lower demand....lower
inflation. Data is lagging as it corresponds to history....rather
than future.... Deflation on assets.... will prevail....and
carry the inflation down......No real wage increases means no real
inflation threat. Inflated prices will be
deflated.......sorry.....are being...already
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Ouch
Posted by ravun on 19th of Aug 2008 at 08:36 am
U.S. producer prices rose by a bigger-than-expected 1.2% in July, the Labor Department reported Tuesday, driven higher by prices for energy, food and other products. Economists surveyed by MarketWatch were looking for an increase of 0.3% in July. Excluding food and energy, producer prices rose 0.7% in the month, which was also higher than expected. In July, energy prices rose 3.1% and food prices climbed by 0.3%
Yes, but look at the
Posted by dodgerdog on 19th of Aug 2008 at 08:38 am
Yes, but look at the reaction of Gold to this news.
Gold
Posted by dylan398 on 19th of Aug 2008 at 08:43 am
I think its becoming all to evident that wall st is trading on the thesis of Deflation.....and selling off commodities at every chance
Will be interesting to see
Posted by hornsant on 19th of Aug 2008 at 08:48 am
Will be interesting to see if there is any reaction by the time the games in China are over.
what is your correlation to
Posted by dylan398 on 19th of Aug 2008 at 09:06 am
what is your correlation to china and the games?? the gold medals??...lol
bullion is supply short....due to
Posted by treid4dou on 19th of Aug 2008 at 09:09 am
bullion is supply short....due to the Phelps effect..... didnt you noticed ????
it seems every time the
Posted by jbarry on 19th of Aug 2008 at 08:53 am
it seems every time the US dollar rallies and commodities fall, all we hear is talk of deflation...
the reason I'm talking deflation
Posted by dylan398 on 19th of Aug 2008 at 09:10 am
the reason I'm talking deflation is when I see highly inflationart news ala CPI today and gold sells off...it is only pre/mkt....lets see what transpires today..
inflation up = higher rates
Posted by jbarry on 19th of Aug 2008 at 09:15 am
inflation up = higher rates = higher dollar, short term...there will come a time when commodities will go higher with a strong dollar...
I will also consider the
Posted by hornsant on 19th of Aug 2008 at 09:45 am
I will also consider the possibility that the mkts have been discounting the poor numbers in anticipation and yesterday's sell and today's pre mkt sale have done the job. Will wait and see if the DOW holds 11400.
they may or may not,
Posted by googool on 19th of Aug 2008 at 09:21 am
they may or may not, in the short to medium term, market may perceive this as higher rates and FED fighting inflation. Such perception may cause further pressure. Such pressure may cause more unwinding and de-leveraging, such action may dessimate any portfolio that tries to ride any probable massacre out.
It is, IMHO, in the interest of all officials for the commodity market to break. If they smell blood, they'll go for the kill.
USDollar going in the short
Posted by treid4dou on 19th of Aug 2008 at 09:07 am
USDollar going in the short term, up, is just another manipulation thru currencies arrangements between ECB/FED.......Deflation is a needed result of major bubbles bursts.....and lets face it.....they are well needed...... even commodities are adjusting down....so nothing will be going up...not even the dollar.....Some are saying we will retrace to the 2002 low...where the bullish counter trend rally started.......as a failed new high resulted......its all a TA reversal down.....economy wise....back to a starting point where bubbles bursts will carry us back to where they did not exist....
but commodities were not in
Posted by jbarry on 19th of Aug 2008 at 09:12 am
but commodities were not in a bubble...they'll take inflation over deflation anytime, as you can tell by the data released this morning...
they will behave on 2
Posted by treid4dou on 19th of Aug 2008 at 09:18 am
they will behave on 2 premises: lower demand....lower inflation. Data is lagging as it corresponds to history....rather than future.... Deflation on assets.... will prevail....and carry the inflation down......No real wage increases means no real inflation threat. Inflated prices will be deflated.......sorry.....are being...already