The Death of Inflation

[biglentil]

Released this morning. This is inflation? . . . .

Annual inflation quickened to 1.1 per cent last month from 1 per cent in January, Statistics Canada reported Wednesday. Economists were predicting a 1.3 per cent pickup in inflation, according to the median estimate in a Bloomberg survey. On a monthly basis, prices rose 0.5 per cent versus economist forecasts for 0.7 per cent.

Does anyone actually believe that? The way yields are rising the market definitely does not buy it.

[jazz]

Lets remember the people who have caused this financial crisis and the others in the past are telling us they can now stickhandle us out unscathed.

That right there should scare everyone.

I would be taking a contrarian bet on this one for sure.

Only deflation I see is in fiat and basic consumer tech, unless that tech is shoved into a vehicle dashboard.

[errolanderson]

Right from the horse's mouth . . . . The Bank of Canada stated they expect inflation to remain in-check as continued excess capacity puts downward pressure on prices. (If I’m not mistaken . . . this is called ‘deflation’).

[biglentil]

Right from the horse's mouth . . . . The Bank of Canada stated they expect inflation to remain in-check as continued excess capacity puts downward pressure on prices. (If I’m not mistaken . . . this is called ‘deflation’).

Same ole jawboning I've heard from the crooks that run the CB for 20yrs, all while they debase the currency at the fastest rate in history. They have to obfuscate the truth to keep the market confused. The original and true definition of inflation is an expansion of the money supply, just like adding air to a tire is called inflating. Price increases are a symptom of inflation. No need to over complicate it. Over inflate a tire with air it explodes, there is no reinflating the tire afterwards, confidence in the tire is lost and the tire (dollar) gets thrown in the trash pile.

Alchemists for centuries attempted to turn lead into gold and they failed miserably. Attempting to turn paper into gold is no different, the failure of the fiat monetary experiment is quickly becoming apparent to everyone . It's never different this time.

[Rareearth]

I do like the various posts and opinions,

Most manufacturing capacity has moved to China, with container availability etc, they cant push “stuff” out fast enough.

Manufacturing is not, and hasn't been a strength in the Canadian economy, taxation, weather, low cost labour, regulatory, unions, etc push manufacturing else where, such as Mexico, Korea, India, and yes China.

So we have a economy in Canada that is a strength, natural resources and agriculture, competitive advantage opportunity, and Skippy does what he can to .uck it.

Thats just not good business 🙁

[shtferbrains]

If we say fu c you to China where will all
those Amazon deliverys come from.
Who will restock Walmart and Cabellas?
Norico makes a pretty good 1911 way cheaper than anyone else.
Paper Tiger with lots of political BS.

[errolanderson]

Fed Chair Powell again took the easy road yesterday or was it an act-of-desperation?

No Fed rates hikes until 2023. That outta get investors all excited and save the stock market bubble.

This about sums up how bad markets conditions are and incoming risk of fallout both to equities and commodities. Every artificially propped-up asset bubble is now at high-risk (IMO).

Gold tried to rally on the Fed's 'easy way out' statement. But again faltering . . . .

[jazz]

errol, I share your concerns about all this, but lets look at Japan. They are a country that ran into these problems 30 yrs before the rest of us. Their govt only debt is 250% of gdp.

Declining demographics, zombie companies, imports much of its raw materials and resources, hollowed out manufacturing base and they still carry on somehow. Not only does their CB print money, it also buys equities too in other countries.

The short answer is, as flawed as it is, this system can easily carry on another generation.

[macdon02]

Fed Chair Powell again took the easy road yesterday or was it an act-of-desperation?

No Fed rates hikes until 2023. That outta get investors all excited and save the stock market bubble.

This about sums up how bad markets conditions are and incoming risk of fallout both to equities and commodities. Every artificially propped-up asset bubble is now at high-risk (IMO).

Gold tried to rally on the Fed's 'easy way out' statement. But again faltering . . . .

All he can do is talk..... literally. If he raises rates, he'll blow up every country in the world due to the recent debt binge. So CB's will continue to purchase their own govts debt and the bond market will likely turn into a zombie similar to Japan. Regardless im not touching it. If lumber futures are the canary in the coal mine and they do correlate with equities reasonably well. Hang on for runaway cost increases, it's only just begun. "Officially" everything will be roses, while supply of goods is impossible to obtain. The Beatles put it best, Back in the USSR.

[Hamloc]

All he can do is talk..... literally. If he raises rates, he'll blow up every country in the world due to the recent debt binge. So CB's will continue to purchase their own govts debt and the bond market will likely turn into a zombie similar to Japan. Regardless im not touching it. If lumber futures are the canary in the coal mine and they do correlate with equities reasonably well. Hang on for runaway cost increases, it's only just begun. "Officially" everything will be roses, while supply of goods is impossible to obtain. The Beatles put it best, Back in the USSR.

No doubt in my mind everything I use on the farm has greatly inflated in price in the last 6 months, I am not concerned about deflation! I am concerned about availability and the affordability of what I need to operate.