Posted on 05/25/2021 5:09:01 AM PDT by blam
Well, it’s confirmed, inflation is no longer just running hot… it is ROARING.
The Markit’s US Manufacturing PMI is a monthly survey that interviews managers in the private sector to see what they are experiencing in terms of business.
It’s widely considered to be one of the best gauges for the real state of the economy.
With that in mind the Markit’s US Manufacturing PMI for the month of May 2021 just revealed that the cost for input prices as well as new business at service providers have hit their highest levels since 2009.
As one well known economist put it, “average selling prices for goods and services are both rising at unprecedented rates, which will feed through to higher consumer inflation in coming months.”
Remember, inflation doesn’t just appear overnight. Instead, it slowly works its way into the financial system in phases.
1) Phase 1: Raw material price spikes
2) Phase 2: Factory gate prices spikes
3) Phase 3: Retail prices
The first stage occurs in the manufacturing/ production segment of the economy when you see producers suddenly paying more for the raw goods and commodities they use to manufacture/ produce finished goods.
READ Warning: Bitcoin & Cryptocurrency Are Napster and iTunes is Coming
We first hit this stage several months ago as the below chart illustrates. The price of raw materials such as copper, lumber and even gasoline are all up triple digits in the last 12 months.
Now, one or two months of higher commodities or raw goods is no big deal, but once you’re talking 6-8 months of steadily rising prices it’s significant. At that point manufacturers/ producers are forced to start raising the prices of finished goods or face shrinking profit margins.
(snip)
(Excerpt) Read more at investmentwatchblog.com ...
Futures, Tech Stocks Jump After Fed Officials Talk Down Inflation Risks
Doctor Copper
The ABCNNBCBSNPRPBS will blame Trump, just you watch....................
The ABCNNBCBSNPRPBS will blame Trump, just you watch....................
Of course they will, all the while ignoring the trillions of dollars Xiden and the Democrats are injecting into the economy.
What'd anyone think would happen when all this free money got printed out of thin air? Anyone who's taken high school economics knew this was going to happen.
I won’t blame trump, but after the response to the virus, and the raining of trillions from heaven by our congress, how do you NOT have serious price inflation? I’m wondering if he wanted to lose, so he could attack as an observer and then come back in 2024 to fix it.
Who wants to be president when the chit hits the fan?
Markets go up, markets go down. Keep a balanced portfolio, reinvest all dividends and distributions and stay the course.
No money needed in the next 5 years should be in the markets. Keep a minimum of 12 months expenses in cash.
Try and ignore the hysteria.
I suspect that crude oil will outperform inflation by 3-5x. Hold on energy prices are about to, as Obama says, “necessarily skyrocket”.
What did anyone think was going to happen when trillions of dollars of cash was dumped into the economy?
This isn’t money that just gets added to The Fed’s balance sheet like in the past. This is money that went in the consumers’ pockets. That cash means people have money to spend on things that they want, which means increased demand, which results in supply shortages when everything available is bought up, which then results in commensurate price increases. Its simple economics that have been proven out time and time again over the last couple hundred years, at least.
Word to the wise: stock pile what you can now because the prices are only going to go up. The government, in their infinite wisdom, is continuing the communist stimulus programs and demand is going to continue to increase, as will price (and inflation) on pretty much everything.
high school economics is now Marxist economics...................
The recent price spike is hardly unusual for copper. I don’t know how to post a screen shot here, but here’s a link to a chart of the price of copper for 60 years: https://www.macrotrends.net/1476/copper-prices-historical-chart-data
I think the market went no where in the 1970s....but certain stocks did good....
Not a lot of EFTs back then...just mutual funds
“What did anyone think was going to happen when trillions of dollars of cash was dumped into the economy?”
Lots of people, including some “Republicans” don’t think debt matters. I’m not clear on the reasoning, but I’ve heard/read it many times, in modern economics, government debt is irrelevant.
Just so you know, I think it’s total BS and will lead to catastrophe.
It wasn't in 1976 when I went. Then again, I also had economics as a minor in College so there's that.
Inflation has been here for decades. That is the way the FED likes it. Gold went form $32 to around $2000. The fed wants hyper inflation to reset their books so they can start their scam fresh.
“I’m wondering if he (Trump) wanted to lose, so he could attack as an observer and then come back in 2024 to fix it.
I think Trump loves America too much to do that. He does not impress me as the Machiavellian type of person.
The Swamp on the other hand.........
I think more and more that Covid was released to help stop Trump before he could MAGA
I’m curious to see what happens when they can’t service the debt. If they do the money-creation thing to pay it then that tells everyone that money isn’t worth anything at all. Then you’ll probably see hyper-inflation a la the Weimar Republic.
You just barely got in under the wire.
Marxism is now de rigueur in most colleges and universities................
I have one year salary in the bank. I was downsized back in December and was given a years severance. I thank the good Lord for my grandfather telling the stories of the Great Depression and he paid cash for everything
The "kids" in the class had this entitlement mentality that as long as they showed up they deserved an A and the liberal Professors were just too much to take most of the time. Looking back I don't know how I finished my second degree without choking one of 'em out cold.
Amen, brother amen
Money invested in the market is money invested in America
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.