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Deflation Warning As U S Wholesale Prices Plunge For 3Rd Month

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http://finance.yahoo.com/news/Wholesale-prices-drop-05-apf-1394602891.html?x=0&sec=topStories&pos=3&asset=&ccode=

Wholesale inflation falls for third month as food prices drop by largest amount since 2002

Martin Crutsinger, AP Economics Writer, On Thursday July 15, 2010, 9:20 am
WASHINGTON (AP) -- Wholesale prices fell for a third consecutive month as another drop in energy costs and the biggest plunge in food costs in eight years banished inflation in June.
Wholesale prices dropped 0.5 percent last month, following declines of 0.1 percent in April and 0.3 percent in May, the Labor Department reported Thursday. Core inflation, which excludes food and energy, posted a modest 0.1 percent increase.
The third month of declines in Labor's Producer Price Index raised new concerns about the possibility of deflation,
a prolonged period of falling prices which has not been seen in the United States since the Great Depression of the 1930s.
While most economists believe outright deflation remains a distant threat, they said it can't be totally ruled out.

A prolonged period of falling prices eh? And why not?

Deflation cometh.

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Will there be deflation in tax?

Utilities?

I think so. Bankster A, instead of earning 8 billion in bonuses, will only earn 4 billion. The tax take will shrink accordingly.

Utilities will collapse of falling demand. People will drive less driving down petrol/oil prices.

Deflation feeds on itself in the same way inflation does. Once out of the bottle, deflation is virtually impossible to contain as no one can raise prices to try to correct it. Want a payrise? You're fired!

Some people, though, do not believe deflation can exist and that it is a myth as economies only have inflation without a down cycle.

Bond markets reflecting a deflationary trend is well under way:

http://finance.yahoo.com/news/Mortgage-rates-remain-at-apf-877425484.html?x=0&sec=topStories&pos=4&asset=&ccode=

Mortgage rates remain at lowest level in decades

Average rates on 30-year fixed mortgages unchanged at 4.57 percent, lowest level in decades

Companies:Bank of America CorporationCitigroup, Inc.Freddie Mac

Alan Zibel, AP Real Estate Writer, On Thursday July 15, 2010, 10:01 am

WASHINGTON (AP) -- Mortgage rates were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.

Edited by Realistbear

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I think so. Bankster A, instead of earning 8 billion in bonuses, will only earn 4 billion. The tax take will shrink accordingly.

Utilities will collapse of falling demand. People will drive less driving down petrol/oil prices.

Deflation feeds on itself in the same way inflation does. Once out of the bottle, deflation is virtually impossible to contain as no one can raise prices to try to correct it. Want a payrise? You're fired!

Some people, though, do not believe deflation can exist and that it is a myth as economies only have inflation without a down cycle.

Bond markets reflecting a deflationary trend is well under way:

http://finance.yahoo.com/news/Mortgage-rates-remain-at-apf-877425484.html?x=0&sec=topStories&pos=4&asset=&ccode=

Mortgage rates remain at lowest level in decades

Average rates on 30-year fixed mortgages unchanged at 4.57 percent, lowest level in decades

Companies:Bank of America CorporationCitigroup, Inc.Freddie Mac

Alan Zibel, AP Real Estate Writer, On Thursday July 15, 2010, 10:01 am

WASHINGTON (AP) -- Mortgage rates were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.

This is preparation for more printing, Goldman Sachs are probably already preparing their positions to profit from it, they will doubtless be informed in advance.

Injin does waffle sometimes, but he expressed the reality a while back - see my signature. Deflation will not be allowed in any significant form.

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http://finance.yahoo.com/news/Wholesale-prices-drop-05-apf-1394602891.html?x=0&sec=topStories&pos=3&asset=&ccode=

Wholesale inflation falls for third month as food prices drop by largest amount since 2002

Martin Crutsinger, AP Economics Writer, On Thursday July 15, 2010, 9:20 am
WASHINGTON (AP) -- Wholesale prices fell for a third consecutive month as another drop in energy costs and the biggest plunge in food costs in eight years banished inflation in June.
Wholesale prices dropped 0.5 percent last month, following declines of 0.1 percent in April and 0.3 percent in May, the Labor Department reported Thursday. Core inflation, which excludes food and energy, posted a modest 0.1 percent increase.
The third month of declines in Labor's Producer Price Index raised new concerns about the possibility of deflation,
a prolonged period of falling prices which has not been seen in the United States since the Great Depression of the 1930s.
While most economists believe outright deflation remains a distant threat, they said it can't be totally ruled out.

A prolonged period of falling prices eh? And why not?

Deflation cometh.

Yes, and both FTSE and Dow having a wobble as we speak/post/communicate (you know what I mean)

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http://finance.yahoo.com/news/Wall-St-drops-1-percent-after-rb-1909970977.html;_ylt=AokXexkaJvjajlE2laT6VXS7YWsA;_ylu=X3oDMTE1bTI1dWxvBHBvcwMyBHNlYwN0b3BTdG9yaWVzBHNsawN3YWxsc3Rkcm9wczE-?x=0&sec=topStories&pos=main&asset=&ccode=

Wall St drops 1 percent after data stirs deflation worry

On Thursday July 15, 2010, 12:42 pm
By Angela "Angie" Moon
NEW YORK (
Reuters
) - U.S. stocks fell on Thursday on anemic economic data that overshadowed solid earnings results from banking bellwether JPMorgan Chase & Co (NYSE:JPM - News).
An unexpected fall in factory activity and a third straight month of decline in producer prices raised concerns about deflation, cooling investors' enthusiasm about earnings season that had lifted the stock market off its recent lows in early July.

There's that "D" word again. Starting to creep into the everyday chat about the current direction of things--might become a self-fulfilling prophecy.

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This is preparation for more printing, Goldman Sachs are probably already preparing their positions to profit from it, they will doubtless be informed in advance.

Injin does waffle sometimes, but he expressed the reality a while back - see my signature. Deflation will not be allowed in any significant form.

sadly, wealth creation is in deflation....no matter what Fiat currencies may pretend.

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http://finance.yahoo.com/news/Wholesale-prices-drop-05-apf-1394602891.html?x=0&sec=topStories&pos=3&asset=&ccode=

Wholesale inflation falls for third month as food prices drop by largest amount since 2002

Martin Crutsinger, AP Economics Writer, On Thursday July 15, 2010, 9:20 am
WASHINGTON (AP) -- Wholesale prices fell for a third consecutive month as another drop in energy costs and the biggest plunge in food costs in eight years banished inflation in June.
Wholesale prices dropped 0.5 percent last month, following declines of 0.1 percent in April and 0.3 percent in May, the Labor Department reported Thursday. Core inflation, which excludes food and energy, posted a modest 0.1 percent increase.
The third month of declines in Labor's Producer Price Index raised new concerns about the possibility of deflation,
a prolonged period of falling prices which has not been seen in the United States since the Great Depression of the 1930s.
While most economists believe outright deflation remains a distant threat, they said it can't be totally ruled out.

A prolonged period of falling prices eh? And why not?

Deflation cometh.

Interesting also that our own mini drop in inflation this week, was said to be as a result of very deep 'record' discounting by retailers. The Jan sales will be good then?! There is now NO upside news coming out about house prices. How refreshing.

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Will there be deflation in tax?

Utilities?

Utilities - yes - there is a glut of gas at the moment - my ETF mate just made 3k shorting gas.

My dividends from electricity generators have crashed.

Why do you think leccy and gas companies are desperate for customers to fix their prices until after next winter?

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sadly, wealth creation is in deflation....no matter what Fiat currencies may pretend.

Very true, by deflation we get the ones with least debt getting wealthier, those in debt the least wealthy get poorer.

With inflation we get the opposite, so why Hyper-inflation if the wealthy are pulling the levers?

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Very true, by deflation we get the ones with least debt getting wealthier, those in debt the least wealthy get poorer.

With inflation we get the opposite, so why Hyper-inflation if the wealthy are pulling the levers?

i WILL SAY IT AGAIN AND AGAIN.

Rate rises will offset any wage increments for the indebted in the coming months/years/decades. So if you are in debt, pay it down.

If you get 3% per annum, as a wage increment you can bet your bottom dollar, interest rates will be 3% plus 1.

Secondly we will get cost inflation, with wage inflation lagging behind, and interest rates in the middle, stagnant growth, with a tad of wage inflation, and essentials outstripping any wage increments.

We are going to have to accept a falling living standards until credit deflation ends, and wages catch up so to allow people to deleverage and start borrowing again.

No borrowing no growth.

Edited by Panda

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i WILL SAY IT AGAIN AND AGAIN.

Rate rises will offset any wage increments for the indebted in the coming months/years/decades. So if you are in debt, pay it down.

If you get 3% per annum, as a wage increment you can bet your bottom dollar, interest rates will be 3% plus 1.

Secondly we will get cost inflation, with wage inflation lagging behind, and interest rates in the middle, stagnant growth, with a tad of wage inflation, and essentials outstripping any wage increments.

We are going to have to accept a falling living standards until credit deflation ends, and wages catch up so to allow people to deleverage and start borrowing again.

No borrowing no growth.

wealth can grow without any borrowing whatsoever.

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  • 261 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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