Posted on 04/15/2011 8:14:07 PM PDT by bruinbirdman
The US Labor Department said that consumer prices climbed a higher-than-expected 2.7pc in March from a year before.
Almost three quarters of the rise was due to surging food and petrol prices, with petrol costs climbing 5.6pc, the ninth straight month of increases. Food rose 0.8pc in March, the largest gain since July 2008.
A survey of 41 economists by Bloomberg had on average expected annual inflation to hit 2.6pc.
David Wyss, the New York-based chief economist at Standard & Poors, said the inflation was largely as expected, adding: "The Fed is not going to see inflation as a threat so they have the freedom to keep interest rates low longer. But core inflation is creeping up from its lows six months ago, so the Fed is going to end its extraordinary measures. There will be no QE3 [a third round of quantitative easing]."
The consumer price index’s monthly rise was 0.5pc, in line with economists’ expectations, the ninth consecutive increase. Core prices – those used by the Federal Reserve to gear policy, and excluding food and fuel costs – rose just 0.1pc, less than had been forecast.
The announcement came after data showed that inflation in China had jumped to a 32-month high, with food prices also proving a major driver for the US’s second-biggest trade partner, climbing 11.7pc in the year to March.
Eurozone inflation has hit 2.7pc and is above 3pc once Britain and the rest of the EU are included, raising expectations of sharper interest rates rises. Eurostat, the European statistics office, attributed the biggest upward pressure to fuel prices.
The sets of data were released amid burgeoning criticism of the Federal Reserve’s stimulus programme both at home and abroad for driving global prices higher.
The president of the Federal Bank of Richmond
(Excerpt) Read more at telegraph.co.uk ...
The noose on private sector America tightens.
Strike up those printing presses, you ain’t seen NOTHING yet, and this will be the political anger people will vote against when it’s time. I think I’d make a contribution to the Democratic Party of $10 if I saw a Certificate of Life Birth.
That is an annual rate of just over 6%.
All wrong. According to the government, inflation is under complete control at the core, except for non-core items such as food, energy, health care costs, and clothing.
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If anything good comes from all of this, the number of people who actually trust the government probably goes down 2% every month the lies continue. It should be interesting to see what happens when it hits zero.
B-b-but Ben and Turbo Tax Timmy say all is well! Why, they wouldn’t lie, would they? /megasarc
It’s gonna be all heck. Watch as the rates ramp for 2011 then fall dramatically in 2012. It’s back and forth, back and forth. We are being played pretty damn pitiful.
CRB Index for the last 6 months.. (Future Freepers Sorry, this is a snapshot URL) this post won't make sense a month after the current date.)
This exactly matches the chart presented by Russ Winter at Minyanville.
The last 40 years have nothing to do with the current situation because folks had the good sense to go Ape Sh%$t when Nixon gave up the Gold Standard. What they are doing now.. the BASELESS STANDARD, the NOT EVEN GREEN ANYMORE.. standard.. heck.. it isn't even paper. Just electrons representing lies that our children have to make real by living in bondage.
If the Debt Ceiling is increased, the Fed will do QE3 to keep Treasury auctions from failing. Something immediate and substantial needs to be done, and Congress just punted.
Some say, "If interest rates on Treasuries skyrocket then everyone, including China and Saudi will jump back into dollars with wild abandon." But, more likely, there will be no takers for $100 Billion per month.. but the interest rates may rise anyway.. rather... it is much more likely that QE3 occurs for the same reasons as QE2 but the situation is more desperate.
The problem with that.. is that the US is deep into short term borrowing which means that the Deficit will balloon insanely the minute interest rates begin to rise..
You get into a trap, there is no interest rate high enough that overcomes the real likelihood of loss of the original principle. Equity works because it based on the analysis of the risk vs reward of appreciation or loss of the capital investment. Bond work on the assurance that the capital invested is safe, over a certain level of risk, they are considered junk because they are inherently not safe.
What foreign companies will do is use the fake dollars we have given them to purchase real US assets leaving us in an inflationary spiral and vassals in our own land. They will at some point soon, months, insist that all of our borrowing be done in their currency rather than ours and this is when our goose is cooked.
This is a story as old as Joseph, the Pharaoh and the 7 years of famine. It ended with all of Egypt in Slavery including the Israelites whom only God could save.
What is sick is that Beck warned of this 6 months ago and we just couldn't see it back then.. but now it is obvious.. and yet we are not doing anything to stop it.
There comes a point in every PONZIE scheme where the new members cannot sustain the deal and it all comes tumbling down. Social Security is the Ponzie scheme and we all know it. It has failed we are selling our very lives and putting our children into the fire of slavery and death and oppression. This has to end worse than Greece and Obama and crowd know it and are cheering with the torches in their hands. This is the Cloward-Pevin crisis they have been working for, but we don't have to go there.
First and foremost, people have been lied to and they are not ready for dealing with the reality of this. Beck and Palin see Trump's big mouth as a distraction but people are sick of lies. I am.
It starts here first. We quit lying to ourselves. I saw the charts that I posted here this weekend and they made me sick. The guy at www.endofamerica93.com has seen this for a while.. and unfortunately decided to make this a sales pitch with a 20 minute clouded presentation at the beginning.
The crisis doesn't come from "Bankruptcy" as Hannity keeps saying.. but the loss of "Reserve Currency Status" and the meetings are going on around the world to get this accomplished. I am sure they would like to do this without destroying the value of the dollars they already have.. but QE3 will destroy this value anyway.. so after June 2011, a crisis is assured soon no matter what if the DEBT CEILING IS INCREASED without substantial immediate and draconian cutting and a mechanism to absolutely end the deficit borrowing in 24 months.
Go outside, look around, do we love this country? If we do, we have only about 2 months to do something.
There is no inflation nor recession. Obama doesn’t use those words, he speaks of recovery, hence everything is good.
Get on the “hope and change” bandwagon like the rest of the media!
Oops...forgot to put “economy” in for the post as one of the keywords above.
Anyway, the government folks will do as those in other countries have: monetize to keep the debt game going as long as they can (inflate). The alternative would be extreme relaxations/repeals of regulations to start much heavy manufacturing for sustainable revenues. If we can tough it out, we’ll probably be better off with the small government after repudiation. With no revenues of real value from such production (due to extreme inflation), there will be no big government after the default.
Yep. There are about 50% of the population who would be upset to see government payments cut in half.
Much easier for the $ to be worth 50% less.
Best to buy some stuff now.
yitbos
We’re so screwed that the best I can hope for at this point, is when the S actually does HTF in an enormous, life-as-we-knew-it-is-over way, that it will be the overspenders who rightfully catch the blame and not the “undertaxers”.
Now I know why the color of the money has turned so gay: It’s not meant to last.
I don't know why you put the sarcasm tag on that. That's really what they're doing. If you include all of that, which we all have to buy, then the inflation rate is approaching 10%. Couple that with the decrease in personal income reported today, and you get a bad situation getting rapidly worse.
Jimmy Carter Part Deux-The EPIC FAIL Edition
But AP reported that if you take food and Gas Prices out of the Formula things are not that bad ,so whats to worry?
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