U.S. Economy: Housing, Prices Signal Some Stagflation (Update1)
`The Stag Part'
``Industrial production is down, that's the stag part, and prices are up, that's the inflation part,'' said Neal Soss, chief economist at Credit Suisse Holdings Inc. in New York. Compared with the 1970s, though, ``it's not likely that inflation will get as out of control when wages do not respond.''
The producer-price index jump exceeded the 1 percent forecast among economists surveyed by Bloomberg News. It was the biggest increase since November. The Labor Department's figures also showed that prices rose 0.2 percent excluding food and energy, a measure that matched economists' predictions. Production was expected to increase 0.1 percent.
``This period of stagflation is lasting longer than expected,'' said Harris. ``It's not to say that we are back in a 1970s-type situation. We have a much more credible central bank,'' no wage and price controls and ``the labor markets are behaving well.''
Stag Party
In the United Kingdom it is now common for the party to last for more than one evening, hence the increasing prevalence of the phrase "stag weekend".
That's just a hop, skip, and a jump to stag decade.
Just about every Bucks night\Bucks Turn features a stripper commonly referred to as the pouch.
In other words, the pouch gets stripped during the Stag Party on Buck's night. I love it when all the pieces of The Bernanke Code fall into place.
Money Safety
And it's not just pouches -- you can find some really creative ways to hide your money.
Like hoarding toilet paper?
Even a wallet kept in your front pocket can be taken by an experienced pickpocket.
Ben Bernanke really doesn't have all that much experience yet but he's a quick study.
Stag,
ReplyDeletehttp://www.latimes.com/business/la-fi-kellogg18-2008jun18,0,1217528.story
Is it inflation or deflation? The above link is evidence we can have both at the same time! Whoohoo!
The power of the substitution effect. I feel both happy and sad.
It's a dessert topping. It's a floor wax. It's both (SNL skit from the 70s or early 80s if I recall correctly)
MAB & Kidneys,
ReplyDelete"We did an extensive analysis of all of our brands to determine what made the most sense for our business," Norwitz said.
It makes little "cents" to put just one froot loop in the box and hope nobody notices.
At least the powers that be who calculate the CPI will notice the smaller box and call it inflation.
http://www.bls.gov/cpi/cpifaq.htm
...which can range from an adjustment for a change in the size or quantity of a packaged item...
I got a new individual health insurance policy in April. They just sent me a letter. They are apparently raising my rates 18%. I'm left to assume that medical care must use a lot of gasoline.
http://www.healthnews.com/family-health/number-underinsured-american-adults-tops-25-million-1194.html
"This erosion of insurance protection is putting patients, families and the nation's health and economic security at risk."
Risk is the four letter word of the decade it seems.