Last week's release of the Producer Price Index should have sent shivers down the spines of those who worry about silly things like profit margins. Prices for finished goods were up 0.7% month-over-month and 6% year-over-year. Intermediate goods prices were up 7.7% year-over-year. Prices for crude goods have soared 3.2% since March and 33.4% on an annual basis. If that's not a V-shaped recovery in inflation, what would you call it?
The Consumer Price Index is up 2.4% over the past 12 months. No, that level alone does not equal intractable inflation, but it's still a big jump from last summer's 2% CPI drop. Thanks to the Fed's record-sized balance sheet ($2.32 trillion), which has grown by $20 billion since since last week alone, inflation data has become disturbing. April's import prices were up 0.7% from March and 11.4% from a year ago.
What's it called when you have high unemployment and high inflation? Oh yeah - staglfation! Malaise! Jimmy F'ng Carter fucks with our economy from beyond the grave through this administration! **update: James Carter apparently not dead.
Perfect summary from Mike Pento's article:
The losers in all this are members of the general public, who are suffering the double whammy of high unemployment and the erosion of their purchasing power.
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