THE MOGAMBO GURU Inflation slime all over
By The Mogambo Guru
The United Kingdom reported a new all-time record for inflation in producer
prices - with June input prices rising 30.0% from a year ago! A third!
This may be part of the explanation of a MarketWatch.com report that said,
"Prices of goods imported into the US rose 2.6% in June", which is a one-month
rise that is terrifying, as those treacherous Brits raise their prices because
their costs have gone up, instead of taking a loss on our behalf! Those limey
bastards! They're almost as bad as those oil-exporting nations who won't give
us oil for free!
And there is a little inflation everywhere you look, as "US export prices,
meanwhile, rose 1% in June after having gained 0.4% in the prior month",
neither of which sounds particularly alarming
until you get to either multiplying 1% inflation times 12 months to get 12%
inflation in prices, or the part that "Overall, import prices were 20.5% higher
than in June 2007"! 20% increase in prices! My God! We're freaking doomed!
Well, naturally, as an American, I am soon bored with the United Kingdom, and
foreigners of all kinds, and figure that they deserve what they get for not
being smart enough to be born as Americans or deliberately crashing their
spaceship here. The bad news is that for us Americans who WERE prescient enough
to do so, the news is not so good.
Guaranteed inflation in prices that follows an inflation in the money supply
(thanks to the despicable Federal Reserve creating so much money and credit
over the last decade or so) is now here in spades, as the Bureau of Labor
Statistics of the US Department of Labor just reported that the Producer Price
Index (PPI) for Finished Goods increased 1.8% in June, "seasonally adjusted".
If you prefer your data unadjusted, prices are actually up 9.2% from a year
ago!
Even worse, at the earlier stages of processing, "prices received by producers
of intermediate goods rose 2.1 percent in June after moving up 2.9 percent in
the prior month," and last but not least, the crude goods index increased a
whopping 3.7% following a huge 6.7% gain in May! Inflation in prices is
freaking here, and we are freaking doomed!
Of course, this "We're freaking doomed" idea was not mentioned at all in the
BLS report, almost certainly censored out, as I distinctly remember writing to
them, "Dear BLS morons, Inflation in prices that follows inflation in the money
supply is here! Look at your own inflation data, you Halfwit, Lowlife, Lying
Government Scumbags (HLLGS)! We're freaking doomed! And you can quote me on
that! (signed) Mogambo."
Most people would say, "I wouldn't quote you, either, if you insulted me like
that!", which only proves why I don't like most people, but which doesn't
explain why the news just gets worse and worse, as "During the first six months
of 2008, the finished goods index rose at a 12.4-percent seasonally adjusted
annual rate (SAAR) after increasing at a 5.8-percent SAAR during the second
half of 2007." Yikes! 12% inflation!
I am trying not to scream out "We're freaking doomed" at the mere idea of 12%
inflation in prices, much less the actuality of 12% inflation in prices, and
(thanks to a Manly Mogambo Effort (MME)), I temporarily succeed in controlling
myself, only to be whacked upside the proverbial head with "Prices for finished
energy goods climbed at a 38.1-percent SAAR from December 2007 to June 2008
after rising at a 16.7-percent SAAR for the 6 months ended December 2007." 38%
inflation in prices!
My head is swimming and I feel a swoon coming on at the idea of 38% inflation,
and I would have fainted, too, if I hadn't remembered what happened the LAST
time I had a fainting spell because of inflation in consumer prices, where
everybody gathered around to steal my wallet and use my own money to bet
whether or not I would die! Bastards!
But this is not about the crap I have to put up with around here from a bunch
of sadistic pinheads, but about how the news just keeps getting (as they say)
worser and worser, as the inflation in prices for crude goods is where the news
unbelievably gets worse, as if that even seems possible, with prices being up a
gigantic 45.5% (unadjusted) from a year ago! 45% increase in prices! Yikes!
We're Truly, Truly, Truly Freaking Doomed (TTTFD)!
As if one cue, I lose my cool and I run around my desk in little circles
screaming, "We're freaking doomed! We're freaking doomed!"
After a few laps, I am winded and tired, and as I pant and puff, I realize that
it is not just us Americans that are doomed, as people all over the world are
suffering from the horrors of runaway inflation in the consumer prices of
things like food and energy because their idiot governments are allowing too
much creating of money and credit, too, just like us butthead Americans.
Richard Daughty is general partner and COO for Smith Consultant Group,
serving the financial and medical communities, and the editor of The Mogambo
Guru economic newsletter - an avocational exercise to heap disrespect on those
who desperately deserve it.
(Republished with permission from
The Daily Reckoning. Copyright 2008, The Daily Reckoning.)
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