Zeev's Turnips Patch-No Politics (ZEEV)

[ItsAllCyclical]

More PPI stuff (Edit)

http://biz.yahoo.com/rb/040401/economy_usa_prices_1.html

>> The Producer Price Index, which measures prices paid to farms, factories and refineries, rose 0.1 percent in February, the Labor Department said, well below the 0.4 percent increase economists on Wall Street had forecast. <<

No inflation???? Just look at the CRB...

http://stockcharts.com/def/servlet/SC.web?c=$CRB,uu[h,a]waclyyay[pb50!b200][vc60][iUb14!Ll14]&pr...

>> Prices for SUVs and light trucks dropped 1.9 percent on the heels of a big 1.1 percent gain in January. Car prices also moderated, rising only 0.2 percent in February after an outsized 0.6 percent rise a month earlier. <<

What a joke. How many factories look at SUV costs when considering product pricing? All that time reworking the numbers and they still use these outdated methods?

>> Further back in the production pipeline, costs continued to march higher.

So-called intermediate goods prices rose 0.9 percent and prices at the crude goods level rose 2.5 percent.
<<

So crude goods level rose 2.5 percent or annualized at 30%!!!

Should be fun to see whether the market believes the PPI/CPI or the CRB over the next month.

They've gone too far with this report. Gov. credibility on these stats should be severly questioned. Seniors are getting screwed on the CPI cost of living increases due to these methods. It's going to be a HUGE scandal one day once the seniors decide to act.