Poor Ben - the choice between a bad decision and a bad decision. He better put a call in to Gerald Ford...
Rising rents pushed up U.S. core prices an unexpectedly steep 0.3 percent for a third straight month in May, according to a government report on Wednesday that cemented expectations of higher interest rates.
The Labor Department said the overall consumer price index climbed 0.4 percent last month, pushed up by a 2.4 percent advance in energy costs.
While the rise in overall prices matched expectations on Wall Street, economists had expected the core measure, which strips out volatile food and energy costs, to climb just 0.2 percent.
Prices for stock futures and U.S. government bonds fell, while the dollar rose as traders viewed the report as boosting chances of further interest rate increases from the Federal Reserve. Interest rate futures markets moved to fully price in a rate rise at the Fed's next meeting on June 28-29.
Over the past 12 months, core prices have risen 2.4 percent, the biggest gain since the period ended in February 2005 and up from the 2.3 percent increase seen in the 12 months through April.
More troublesome, however, is the rise in recent months.
June 15, 2006
Inflation roaring, another rate hike guaranteed - will there be another one, and another one, and another one?
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Rising rents pushed up U.S. core prices an unexpectedly steep 0.3 percent for a third straight month in May
I thought the housing crash would lower rents, not raise them.
Renting is for suckers! HA!
The Fed Usually Overshoots. . .
And this time it will be no different, but then again, with a HUGE deficit, they need to do something. . .I think 5.25 will do the trick. By August, it will be apparent that the economy is tanking. . .as for rising rents. . .it is pretty local. Low end of the rentals here in San Diego have gone up, because people can't afford to buy a house, but "luxury" condos (the type I am renting) are a dime a dozen, and a project right down the street - The Allegro, is giving months of free rent, and likely a year's supply of toilet paper if you sign a lease!
Does the rate go up ... stay ...or go down...COMPLETE waste of time jaw jacking about. This is the real issue my friends:
"Business Week Online has just reported that George W. Bush on May 5 signed a memo entitled “Assignment Of Function Relating To Granting Of Authority For Issuance Of Certain Directives: Memorandum For The Director Of National Intelligence.” In the document, Bush assigned intelligence czar, John Negroponte, the task of waiving Securities and Exchange Commission rules, established in 1934, pertaining to accounting disclosures by publicly-traded companies. As a result of no longer needing to reveal financial information to shareholders in the name of national security, the cloning of Enron, having been in process for several years, is now complete. Instead of being required to disclose valid accounting ledgers, U.S. corporations have now been given carte blanche to maintain fiduciary legerdemain. I must ask: How can any sane human being persist in believing that a legitimate government exists in the United States?
DON'T BELIEVE ME - GO TO THE FEDERAL REGISTER AND LOOK FOR YOURSELF.
Get out of markets NOW!!
2011 marks the 30 year bond many nations purchased at 15% interest in 1981. Could it be that is where interest rates will be briefly to get those nations to reinvest those bonds. That would prop up the dollar and begin another like the economy 1983 onward.
The government numbers are a crock. Inflation and unemployment are way higher than they say. Their lying numbers are going to work out in a funny sort of way this time though. Higher cost energy and sleazy debt induced inflation is just now hitting the CPI. Combine this with their own lowball unemployment numbers and that gives BB all he needs to justify further tightening. Funny, they end up drawing the right conclusions from faulty data.
Of course the CPI and Unemployment numbers are "Bushed". Though the CPI "change" came under Clinton. However, Bush threw out the Reagon/Clinton era way of caculating umemployment with a model that "throws out" some people on the LPR which the previous model(correctly) counted. Just by using the raw data on labor and using Clinton era forumla's, you get a May rate of 5.4%. April was 5.6, March 5.7. I expect a increase in June.
Hardly bad, though not at full employment which is why wages aren't rising much. We are having regional booms but not a national boom like which got underway during the fall of 96 and ran into 2000. That was a country wide boom where everybody felt it. Not this cycle so far. Though at the same time during the 91-01 cycle, we weren't at full employment yet either by January 1996, with a up and down region by region economy. The problem was then, the dot.com bubble was just really beginning to blow up, this time the housing bubble looks gassed.
Bush should be ashamed of the political moving he has done by abusing the "unemployment" indictor(a lagging one it is).
http://whttp://tinyurl.com/lb4r2
dont know if this is new
IMO inflation is ugly right now, but it will calm down after 2008. The commodity bubble has sprung a leak and there will be 1-3M unemployed mortgage/construction industry folks (who have been among the biggest spenders in this consumer-driven economy) next year. Real wages are rising only minimally for a few sectors and still declining for most. It's the perfect storm for real estate and emerging markets (China will have to cool its jets when rates spike), but interest rates will fall again in a few years, and there will be LOTS of inventory to choose from. Inflation spiking just now is not such a bad thing. It will help end this madness, and it won't get out of control like in the 70s.
Hmmm rising rent is the core of the inflation...
Here's some of what our masters are planning for us.
Must read.
http://tinyurl.com/fb3hj
He asks "Are you ready to fight?"
Since about half of the American populace now votes for a living (they pay no income taxes or receive direct aid from Uncle Sam), I'd guess there won't be much of a fight. Assets of "the rich" will be seized and redistributed.
There may be scattered resistance, especially in some western states, but the new Homeland Security SWAT teams will quickly put in down. Welcome to the new world order, Comrades!
Moving assets offshore and emmigration are the only real solutions going forward. The smart money did it long ago, back in the days when you could still get a dual citizenship in countries like Belize. Those opportunities are gone now and the other doors are being closed. There are still ways to move assets out of the U.S., but none of them are fully legal and all will be tracked by DHS computers. Get a passport now or keep the one you have current. When the big door slams shut it will usher in an ugly time.
As for what they have planned for us, look here:
http://www.humaneventsonline.com/article.php?id=15497
I think the currency will be called the "Camero" for CAnada aMERica mexicO.
Why has MSM missed this?
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