1. Bernanke and Obama should resign from their posts since they have achieved nothing but to fool the people about the real state of the affairs. America is still in depression as house prices prove evidently and the rest especially the stockmarket is a multi trillion Dollar scam. The real economy in real inflation terms is negative the whole time and even now as the cooked numbers are at 3.6% CPI inflation ( despite the constant lies of officials that there is no inflation) – the real one is rather 8-10 % with the steep negative interest rates they even rob the regular saver and kill his purchasing power at the same time.
Today again the economic situation keeps deteriorating and the looming failure of Greece may trigger the same effect as the Autralian bank back in 1932 which all nations try to cover up ( only the Germans do not seem to get the whole picture as the are chasing pennies when Dollars are at stake). Whatever the EU agrees on will not be accepted by the Greece population in a very likely referendum as further austerity is not the option hey should go for anyway at the conditions of the EU. A default is much better for them and will trigger a period of austerity anyway as they will have no line of credit in such an event and will need to adjust to a very severe credit crunch. Hence protesting against austerity is at the end a meaningless event as it will be mandatory only the default helps them to get rid of 75% of their debt and they can return to a Drachma regime which will make their country cheaper for tourists or to export any goods. In return they will have to live with a higher inflation for a while as energy will become more expensive. The trick will be to egt a decent new government that is not corrupt which is at least a miracle event.
Submitted by Tyler Durden on 06/15/2011 08:47 -0400
June brings us much more centrally planned stagflation.CPI increased 0.2% in May, higher than expected 0.1%, and up 3.6% Y/Y. This is the 11th consecutive increase in inflation. And so much for the CPI ex-Food and Energy which came at +0.3% on expectations of 0.2%, up from 0.2% in April: “The index for all items less food and energy increased 0.3 percent in May, its largest increase since July 2008. The indexes for apparel, shelter, new vehicles, and recreation all contributed to the acceleration, rising more in May than in April. These increases more than offset declines in the indexes for airline fare, tobacco, and personal care.” More on the Chairman’s failure to rein in inflation in 15 minutes: “The food index rose in May as well. The food at home index repeated its April increase of 0.5 percent as four of the six major grocery store food group indexes increased, with the index for meats, poultry, fish, and eggs rising the most. In contrast, the energy index, which had been rising sharply, declined in May. The gasoline index decreased for the first time since last June, although the index for household energy increased. The upward trend among the 12 month increases of major indexes continued in May. The 12 month change in the all items index, which was 1.1 percent as recently as November, reached 3.6 percent in May. The energy index has increased 21.5 percent over the last 12 months, the food index has risen 3.5 percent and the index for all items less food and energy has increased 1.5 percent. All of these figures have been rising in recent months.” But the real action was in the Empire Manufacturing Index which plunged from 11.88, and forget about expectations of 12.00,printing at -7.79 in June. The contraction is now confirmed. This is the first contraction since November 2010 when QE2 began. Hint: QE3 is coming. Also, the future general business conditions index fell thirty points, reaching 22.5, its lowest level since early 2009. And the kicker: margins continued to collapse as prices paid fell less than prices received. This is what stagflation is pure and simple; it has also been Zero Hedge’s keyword of 2011 since January.