Inflation’s Collapse

[dmlfarmer]

Retails now swamped with inventory. Supply chain crisis appears over. Baltic dry index (ocean freight)
sliding. Retailers now desperate to move inventory as consumers slow spending. DISCOUNTS, DISCOUNTS.

Commodities, energies, precious metals, industrials all in bear country. Say inflation?

So Errol, was the last year of price hikes actually inflation or was pricing reflecting shortages caused by multiple factors and profiteering by all sectors of the value chain in a distorted marketplace?

[errolanderson]

So Errol, was the last year of price hikes actually inflation or was pricing reflecting shortages caused by multiple factors and profiteering by all sectors of the value chain in a distorted marketplace?

Gouging is not inflation . . . .

[jazz]

CPI is tomorrow errol, we will see who is right.

Energy is no where near a bear market. Inflation will move to the labour market next and it will be hard to get it out of there with out major pain.

The strong dollar is contributing to what you are seeing in commodities.

[errolanderson]

CPI is tomorrow errol, we will see who is right.

Energy is no where near a bear market. Inflation will move to the labour market next and it will be hard to get it out of there with out major pain.

The strong dollar is contributing to what you are seeing in commodities.

jazz . . . government data is 3 months behind reality and well behind-the-curve. Bank of Canada rate hike tomorrow is irresponsible.

[shtferbrains]

Inflation is rampart in wages.

Trying to find a wage incentive that attracts some interest to fill short staffing.

It's across all industries.

Oilfield can't pay enough to get people back. $78 hrs?

RCMP at 42% of required recruiting.

Tire shops in town turned over majority of staff. Mechanic's and techs short everywhere.

All retail can barely keep the doors open.

3 jobs for anyone who wants to work long hrs.
Ask any immigrant you see how many jobs they have.

[jazz]

jazz . . . government data is 3 months behind reality and well behind-the-curve. Bank of Canada rate hike tomorrow is irresponsible.

When the CBs and govt start reducing balance sheets, I will believe that story. But that hasnt happened. Trudeau has personally increased Canadas debt by at least 10B this past month.

Inflation will moderate into the 6% range in the next couple months after another fed .75% increase this month, but the damage to the economy and stock market will be apparent by then, and they they will start printing all over again. So will the US govt in the fall. So will the ECB and BOJ etc.

Ask any immigrant you see how many jobs they have.

Canada lost jobs last month while all the job gains in the US were people getting 2nd jobs to pay their bills.

[Taiga]

As expected pump prices have dropped locally quite a bit. Regular down from 1.89 to 1.69 and pump diesel fell by even more than that. There is something known as market forces which governments maybe powerless against. In that case party like it is 1930 again.

Where are you seeing diesel dropping, still over $2.15 here. I will get a farm price from coop this morning.

[jazz]

Errol is anticipating a collapse of fiat and Keynesian economics.

For the record, a study was done indicating the US could still easily double its debt and not risk a currency crisis.

So until that balance sheet gets to $50T, deflation is not a risk. Reversion to the mean is no deflation.

[errolanderson]

Markets are always right . . . .

[ajl]

Where are you seeing diesel dropping, still over $2.15 here. I will get a farm price from coop this morning.

Pump price for diesel in Sherwood Park at south side Shell $1.67. Noticed that it was quite a bit cheaper than most other places. WTI at $96 this morning. Local coop has gas for 1.69. Never know diesel price when filling slip tank until bill comes.

[jazz]

June CPI in today at 9.1%.

[biglentil]

Inflation is far from dead.