Looks like the Fed was right in focusing in Core CPI afterall

Discussion in 'Economics' started by Daal, Nov 18, 2008.

  1. Daal


    they took the blame for the big spike in overall cpi but now where are the ETrs who will give them credit for the plunge in food and energy prices?
  2. Excellent post. I wonder what happened to the ET resident inflation bulls. Looks like they went into hibernation.

    They will be back.
  3. Please post tomorrow cpi number here today; seem like you are working for fed.
  4. Daal


    PPI MoM was -2.8%, core PPI MoM was +0.4%+
    I'm just guessing the trend.
    but bernanke DO have a point that food and energy is too volatile and the fed would take the blame for things they cant control if they targeted overall CPI
  5. First, if you think that flooding the global world with Money, will not bring inflation.....then you need to take your head out of the sand.

    IMHO, 6 months from now, we will start to see inflation signs that will point two the possiblity of "Carter" years. Could go higher.

    Think outside the box and you could say that the Global Powers have a way to "Suck" inflationary pressure out of the flooding of capital. I say, good luck.
  6. core PPI +0.4%

    if anything they must raise rates now
  7. There was a report one week ago from the Food and agriculture organisation (FAO), saying food price would jump next summer as farmers would plant less because of low growth.

    How would you analyze that combination of recession and then inflation, how should the market react to this? how should the Fed react?
  8. Beside, the food inflation took around 3 month to form, during these 3 month if people would have sticked to CPI, they would have suffered much more.

    Not everyone has collateral.
  9. lrm21


    its called liquidation.

    For example GM just sold they're stake in Mazda, what do you think they got in return, potatoes?

    Being the reserve currency of the world, and the forced liquidation that is occurring the demand for dollars is high. At some point the demand for dollars will slow. Once the liquidation is done.

    The world will be awash in two types of useless garbage in the next 12 - 24 months.

    Cheap plastic from China
    Cheap Paper from America
  10. You mean there is no way to get them back, recycle them into higher-grade plastics? in a cost-effective way?
    #10     Nov 18, 2008