Looking at the headline #'s off dow jones newswire, I am having a difficult time understanding the math. Makes me wonder if the guys in charge can even add. *US PPI +0.3% *US PPI Ex-Food & Energy +0.5% *US PPI Intermediate Goods +0.8% *US PPI Crude Goods +3.7% *US PPI Energy Prices +0.8% *US Pasenger Car Prices +0.8% Someone explain to my dumb ass how the PPI headline # can be lower than all the inputs. Core was higher stripping out food and energy, yet energy was much higher.
We are getting to the point where nothing from the government or corporate balance sheets can be trusted. And the government seems to actively encouraging cooking the books
When you take into account that the government wanted to classify jobs in the fast food sector as being "manufacturing" because of the assembly required (bun, patty, tomato, pickle, etc.), then it all comes into perspective. (I still can't believe that this wasn't a joke on a grand scale by a master without peer.)
Go to http://www.bls.gov/news.release/pdf/ppi.pdf page 13 Dairy, fruit, vegetables, and pork are all down .... Those are the finished prices Then go to page 14 and look at 'crude foodstuffs and feedstuffs'. Most of those inputs are way up. So that tells you that producers are not passing the increased costs to the consumer. They are absorbing them. Look at bakery products up only .5% and wheat up 22%... You see? That explains whats going on. Just like gasoline versus crude oil... Demand down on gasoline, thus the producer is pressured. Telling you guys we are at the start of a deflationary move.