Did One notice there was little attempt to withdraw the volitile elements from the Core PPI mix today? The reading of 0.3% for May was bad, but even worse, it came from Core Prices with the volitile Prices declining or moving only marginally. Oil and Gas Reserves also happen to be at a 20-year high, while growth in American demand for Oil is expected to rise only 0.9% this Year; remember they still project a 4% growth rate for the Economy. We must be racing to Work on bicycles.
A piece of advise: Core prices has the tendency of being very sticky in comparison to volitile Prices, so don't expect Price reductions on Retail Goods anytime soon. New Hires are at a miserable rate, so We must all be at Work already (hint: the New Hire rate is at about 40% of the Labor Entrants rate). World Markets have followed the descent of American markets yesterday, so it could be interesting to follow the Subscription rate internationally to absorb new American Public and Private debt. I thinks George W. Bush's chickens are all coming home to roost at once (or is that Cows--Texas must be recognized, you know, though maybe George W. has forgotten).
The secret of success may be to end the Estate Tax and cut Capital Gains, but this Author has some doubts; but Bernacke may be influenced to raised Interest rates again. One cannot forget that Business Inventories are rising, except to Retail Goods. This Author has often speculated how many mistakes would have to be made, in order to recreate The Great Depression. Luckily, there are too many inplace mechanisms to allow for such a happenstance--I think. We might be in for a mild Recession, if Chinese demand for Oil declines because of lower Shipments to the United States due to loss of Consumer Demand. We might equally as well be in for the economic Boom of the Ages--well, I kind of doubt it. I've used IT'S A WONDERFULL LIVE before on this blog, haven't I? lgl