DEFLATION: Comin-in strong

[TOM4CWB]

Inflation numbers for Canada up to 6.9% (year over year) up again according to Stats Canada, 6.7% last month.

Interest rates will be going up more again…

[flea beetle]

Major fallout in global natural gas prices in-progress. European electricity prices in a dive. LNG shipments now backing-up at Spanish ports. Can’t unload as storage full. Gas prices dropping like-a-stone. Some analysts say prices may go to zero. Dutch TTC, Korean and Japan nat gas indexes in-a-meltdown. Suffield AECO spot storage hub price tubed to $1 per gigajoule from $4.25 per gig in late Sept. Henry Hub is now 50 percent of recent $10/MMBTU.

This significant energy market event will likely not be reported by main-stream media as it does not meet their inflationary biases.

So do you think a guy should hold off buying fertilizer then since natural gas is a staple of N production?

[errolanderson]

So do you think a guy should hold off buying fertilizer then since natural gas is a staple of N production?

Out of my wheelhouse . . . . But production and shipping issues have a major say. IMO, much of gross inflation is simply gouging. This is not inflation. Gouging is short-lived and central bankers have no say. Many asset prices now under heavy price pressure.

If a global war breaks out, shipping will be impacted. If not, prices may have considerable downside. Deflation is coming in strong (IMO) as the recession is deepening quickly. Energies leading the way, despite OPEC cutting oil production and Russian threats.

[Hamloc]

Out of my wheelhouse . . . . But production and shipping issues have a major say. IMO, much of gross inflation is simply gouging. This is not inflation. Gouging is short-lived and central bankers have no say. Many asset prices now under heavy price pressure.

If a global war breaks out, shipping will be impacted. If not, prices may have considerable downside. Deflation is coming in strong (IMO) as the recession is deepening quickly. Energies leading the way, despite OPEC cutting oil production and Russian threats.

Deflation, Errol haven’t seen it in my world. Joystick control for the loader in my 2007 Case tractor. I replaced it in 2017, I payed $2200. It was malfunctioning the other day, I priced a new one it was $5750. Yup deflation. Just booked fertilizer, $35 an acre more than last year. Biggest issue I see will be supply. European fertilizer manufacturers have shut down plants because natural gas was too high of a price. Will North American manufacturers try to export to Europe? No idea. Having said that, with an incoming recession prices could go down as well like they did in 2008-2009. Risky either way being in a drought.

[beaverdam]

Interest rates will be going up more again…

Thought they were talking 1/2% increase after the last numbers and move,,, this morning, they're back talking about 3/4% for the next BofC rate hike.

[shtferbrains]

I saw our external debt is 135% of GDP.
With loss in value of loonies of approx +10% and falling daily how does that effect inflation?

If they are pumping the $value will that not also inflate the money supply.

I'm not a journalist and don't understand it all.

[biglentil]

Thought they were talking 1/2% increase after the last numbers and move,,, this morning, they're back talking about 3/4% for the next BofC rate hike.

In lockstep they are committed to throwing the economy over the cliff. How else would they collapse the banking system to usher in their one world currency the CBDC? Saw this coming before even the 1st hike was made. The IMF is the maestro.


Its been in the works for a very long time.

[biglentil]

Never have rate hikes been so aggressive, im not expecting them to capitulate anytime soon.

[ajl]

The only reason rates rises seem aggressive is that they should not have been zero in the first place. There should not have been lockdowns and severe supply chain disruption over wuhu flu either. The sole purpose of central banks is to suppress rates. If they are rising, it is because printing has slowed. Central banks should be disbanded and market rates allowed to prevail and then they would be even higher than they are now. If rates were not allowed to rise then you would lose the currency which would result in economic chaos. Would rather have higher rates than a worthless dollar.

[Guest]

Farm diesel $1.75
Hope it kicks in soon Errol

[sumdumguy]

Expand the money supply ten-fold and drop interest rates to zero, then raise the rates ten-fold, the only way to shrink available money ———-> TAXES

[biglentil]

Farm diesel $1.75
Hope it kicks in soon Errol

I'm not betting on it. In the United States, meanwhile, distillate stocks have fallen to 106 million barrels, which is the lowest since records of these stocks began back in 1982. In February Europe is placing an embargo on all crude oil from Russia.

[furrowtickler]

Expand the money supply ten-fold and drop interest rates to zero, then raise the rates ten-fold, the only way to shrink available money ———-> TAXES

It designed to crush the middle class into a subservient class . And some are cheering it on , sadly their kids and grandkids will pay the price

[biglentil]

What we are witnessing is the malicious systematic destruction of the supply chain and the economy. Deflationists will be waiting until there are only crumbs left to purchase at exorbinant prices. What they believed to be wealth in savings acounts, was actually only a claim on wealth, that claim expired.

[errolanderson]

What we are witnessing is the malicious systematic destruction of the supply chain and the economy. Deflationists will be waiting until there are only crumbs left to purchase at exorbinant prices. What they believed to be wealth in savings acounts, was actually only a claim on wealth, that claim expired.

Biglentil, good point. Supply chain issues have created the perfect opportunity for gouging. Just look at grocery chain profits recently. Is this true inflation?

Once the suppliers losing control of tight inventory, prices collapse. This is now happening one-by-one. Wait for the layoffs, wait for the bankruptcies, welcome 2023 . . . .

Central bankers don't appear to have a clue. They'll destroy the economy on their march to battle inflation and make the current recession/depression far deeper. Asset prices are in big, big trouble (in my view) . . . .