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PPI Rises 9.6% Annualized in January

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February 16, 2011 – Comments (12)

Reports the Fed. That's 7 consecutive months.

In the spirit of the times, maybe this is evidence of deflationary shock.  I propose adding an Accurate Prediction Award for the MMT/defaltion.

(P.S. I noticed a PragCap writer is finally coming around to stagflation. Better late than never I suppose.)

David in Qatar

12 Comments – Post Your Own

#1) On February 16, 2011 at 4:59 PM, whereaminow (20.57) wrote:

In related news, regime apologist and CFR stooge Laurie Garrett has issued a report on rising commodity prices. Robert Wenzel breaks it down here.

She states the drivers of rising global food prices, are increasing demand for meat, biofuels, price speculation, and severe weather events. Yet, she never mentions the role of the Federal Reserve (and other central banks) as a result of their money printing, playing any role at all in the price increases. Ben Bernanke is innocent in the eyes of Garrett, with no proof of such.

She's worng the weather too. Krugman tried the same trick earlier in the year.  And of course, for Krugman anyone who denied global warming/climate change is also a closet-wannabe-slave ownere.

A recent scientific study shows no increase in volatile weather worldwide.

David in Qatar

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#2) On February 16, 2011 at 5:52 PM, devoish (98.38) wrote:

A recent scientific study shows no increase in volatile weather worldwide

You should definitely link to something that supports that claim.

Here - try this link.

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#3) On February 16, 2011 at 6:57 PM, whereaminow (20.57) wrote:

There's a link in my link to the work.

I'm just really lazy.

The Twentieth Century Reanalysis Project is the latest attempt to find out, using super-computers to generate a dataset of global atmospheric circulation from 1871 to the present.

As it happens, the project's initial findings, published last month, show no evidence of an intensifying weather trend. "In the climate models, the extremes get more extreme as we move into a doubled CO2 world in 100 years," atmospheric scientist Gilbert Compo, one of the researchers on the project, tells me from his office at the University of Colorado, Boulder. "So we were surprised that none of the three major indices of climate variability that we used show a trend of increased circulation going back to 1871."

David in Qatar

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#4) On February 17, 2011 at 1:51 AM, FleaBagger (29.77) wrote:

Property damage values from weather are not inherently a good guage of weather extremity, largely because with increasing population and Third World wealth, along with government regulation of insurance, it becomes more common for humans to inhabit previously uninhabitable areas in the paths of hurricanes and at the epicenters of earthquakes, and to have shelters for the weather and tectonica to destroy where there were none before (e.g. Haiti).

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#5) On February 17, 2011 at 3:50 AM, checklist34 (99.71) wrote:

dig up the data from the "stagflation" era on wage growth and inflation.  there was substantial wage growth throughout that period.  there is not right now. 

we aren't going to get stagflation this time around, folks, if economic growth stagnates or we double dip, we get commodity deflation and probably another deflationary shock.  

 

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#6) On February 17, 2011 at 3:54 AM, checklist34 (99.71) wrote:

commod inflation right now has nothing at all, and I mean nothing, to do with the worlds 2nd largest economy being 70% (per chanos recent commentary) construction, probably half of which it doesn't need.

nothing to do with it.  ;)

wanna go dollars to pesos on stagflation -vs- flopflation?

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#7) On February 17, 2011 at 6:09 AM, djfhdsk (< 20) wrote:

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#8) On February 17, 2011 at 6:09 AM, djfhdsk (< 20) wrote:

( http://ype.cc/UVVLX  )

We can supply series of Sport Jersey.

The detail is as follow.:

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Authentic Embroidered NFL Equipment Logo on Neck

Screen Print Numbers on Front, Back & Sleeves or Shoulders

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#9) On February 17, 2011 at 9:13 AM, whereaminow (20.57) wrote:

wanna go dollars to pesos on stagflation -vs- flopflation?

LOL, I don't know check. I don't necessarily have a disagreement with your point of view, as I could see us inflating and contracting at ever more extreme rates as well. My stagflation prediction was only for the next couple of years.

As for wage growth, your point is correct, but stagflation does not (as far as I am aware) require wage growth to hold true. It's merely high inflation coupled with low growth.

To be honest, I hope neither one of us is right.

David in Qatar

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#10) On February 17, 2011 at 9:32 AM, devoish (98.38) wrote:

Flea,

I agree with your #4.The chart just shows a picture, not neccessarily a reason. Neither does it count the number or intensity of weather related disasters. Just like counting total deaths would not prove that years ago weather was was worse because more people died, because we now can combat weather and plagues better. So the question becomes, is this just more vulnerable populations, as you suggest, or more extreme weather events as I suggested. Or the more likely truth that it is some combination of both.

Signs of climate change?

A single weather event is not proof of climate change but the sum total of events constitutes a clear chain of evidence which is backed up by additional meteorological readings. March, April, May and June 2010 were the warmest ever recorded globally, and July looks set to follow suit.

Another sign of global warming is that the area covered by sea ice in the Arctic Ocean shrank to record lows in June and July, and is expected to reach a new absolute minimum in September. This is happening even against the background of minimum solar activity during the first six months of 2010 and indicates that solar radiation can be excluded as a causal factor for the extreme weather events.

These facts show that global warming is playing a significant role in the rising number of extreme events. Analyses performed by Munich Re’s natural catastrophe database, the most comprehensive in the world, substantiate this increase: the number of extreme weather events like windstorm and floods has tripled since 1980, and the trend is expected to persist.

Excerpts from interview with Prof. Peter Höppe, Munich Re’s Head
of GeoRisk Research/Corporate Climate Centre,
on ZDF TV news program (Germany), 09.08.2010

Munich Re has been analysing natural hazards and natural hazard losses for more than 35 years. For this purpose, Munich Re has set up the most comprehensive natural catastrophe database in the world, which currently comprises more than 28,000 events. It documents major events from 1950 onwards, all claims-related events from 1980 onwards, and the effects of natural catastrophes on individual economies, the insurance sector and the population.

Loss trends

“Our database clearly indicates a sharp rise in the number of weather-related natural catastrophes per year, in terms of overall and insured losses. For instance, there has been a threefold increase in floods since 1980. There has also been a rise in the number of windstorm losses, Atlantic hurricanes being particularly destructive.”

“In Germany, extreme precipitation resulting in floods is becoming increasingly common. This affects not only people living on rivers: there are more and more cases of heavy rain and flash floods. Anyone may be affected.”

“Both the hundred-year flood in 2002 and the current flooding on the River Neisse were caused by what are referred to as Vb weather conditions, that is to say, a low-pressure system from the Mediterranean region which passes to the east of the Alps and then heads south again. This produces extreme precipitation on the northern slopes of the Alps and low mountain ranges. This situation has occurred much more often in recent years – and explains a substantial proportion of the many floods in Poland, the Czech Republic, eastern Germany and parts of the Alpine Foreland.”

Current weather extremes and climate change

“Climate change cannot be identified from individual events but our figures, backed by verifiable changes in meteorological data, indicate a trend towards an increase in extreme weather events that can only be fully explained by climate change.”

“The current state of knowledge leaves no doubt about the existence of anthropogenic climate change. Whether the current weather extremes are caused or intensified by climate change is uncertain, but there is considerable evidence indicating that climate change is involved at least to some extent.”

Of course, I don't believe the insurance industry. To me they are just a typical example of a private corporation, using lies and fearmongering to justify increasing insurance rates for profit.

I, a "gov't apologist" believe the Gov't funded scientists who have gone and stood winters in the cold to increase their understanding.

You might choose to believe the coal and oil industrys which fund "thinktanks" that deny anthropenic global warming.

Best wishes,

Steven

 

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#11) On February 17, 2011 at 9:41 AM, whereaminow (20.57) wrote:

They released you from looney bin, huh Steve? Glad to have you back.

David in Qatar

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#12) On February 18, 2011 at 4:30 PM, ETFsRule (99.94) wrote:

Good stuff from Devoish.

Here in Connecticut we are setting records for the most snowfall ever recorded. This comes right after the hottest summer in CT history. That's weird.

This is also very weird.

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