PPI - Wholesale Inflation Increases 0.8% for June 2013

The June Producer Price Index increased 0.8% for finished goods.  May PPI increased 0.5%, but April dropped -0.7%.  For the year PPI increased 2.5%.  This is the biggest annual increase since March 2012.   Gasoline again is the culprit, with wholesale prices surging 7.2%.  Core PPI, which is finished goods minus food and energy prices, increased 0.2% for the month.

PPI Jumps 1.1% Due to High Wholesale Gas Prices in September 2012

In September, Producer Price Index, or wholesale inflation, increased 1.1% for finished goods and is the 2nd month in row for a jump. August PPI increased 1.7%. Gasoline again is the cause, with prices surging 9.8%. Gasoline was the culprit for 80% of the energy index ballooning by 4.7%. Food also increased by 0.2%. Core PPI, which are finished goods minus food and energy prices, had no change for the month.

Wholesale Prices Jump 1.7% in August 2012

The Producer Price Index, or wholesale inflation, increased 1.7% in August 2012 for finished goods and is the largest monthly increase since June 2009. Energy alone ballooned by 6.4% with gasoline prices surging 13.6% in August. Food also jumped by 0.9%, the highest jump since November 2011. Core PPI, which is finished goods minus food and energy, increased 0.2% although July's core PPI increased by 0.4%.

Trade Deficit for December 2010 - $40.6 Billion

The December 2010 U.S. trade deficit increased $2.3 billion to $40.6 billion. $25.3 billion of this deficit is oil related. For the year, the trade deficit is -$497.8 billion, a trade deficit increase of -$122.9 billion, or 32.8% increase, in comparison to 2009. Oil related trade was -$265 billion of the total yearly 2010 deficit, or 53.2%.

CFTC to curb oil speculators

The Commodity Futures Trading Commission is proposing a new rule to limit energy speculation.

(everyone applaud)

The proposed caps announced on Thursday will have limited market impact affecting only a small handful of traders – about 10, by the CFTC’s own estimates – on crude oil, natural gas, gasoline and heating oil markets. The new limits are largely higher than the so-called “accountability levels” set by exchanges and which, if exceeded, trigger heightened surveillance.

Here is the actual proposed position limits rule where comments can be received up to 90 days.

This is the basics of the proposed rule:

Dramatic Food Inflation Predicted

I don't care how Machiavellian you are as an investor, this story is not good and I sure hope all consider donating locally to food banks. While the world has over 1 billion people in hunger and the United States has surged past 35 million on food stamps with half of all children at some time being on them, we have these forecasts:

Rice may surge 63 percent to $1,038 a metric ton from $638 on Philippine imports and a shortage in India, a Bloomberg survey of importers, exporters and analysts showed. The U.S. government says nonfat dry milk may jump 39 percent next year, and JPMorgan Chase & Co. forecasts a 25 percent gain for sugar.

Emerging Markets at Record 24% of World Equity, China Snapping up Commodities

Emerging Markets Take Record Share of World Equity:

Developing countries’ share of worldwide equity value climbed to a record as the fastest- growing economies lured investors amid the first global recession since World War II.

The 22 nations classified as “emerging” by index provider MSCI Inc. comprised 24 percent of world market capitalization, up from 18 percent at the start of this year, the highest proportion since Bloomberg began compiling the data in 2003. China shares surpassed $3 trillion yesterday for the first time since August, from $1.8 trillion at the end of 2008.

So while they pour money into emerging economies the established nations are contracting.

As pointed out previously we have a wealth transfer going on.

Meet the new masters.

This article says it all. Our financial geniuses think they are so smart, but we are way behind the curve. All of those foreigners who go to Harvard, MIT, Berkeley, Stanford and all the other elite institutions here pay attention. They are able to assimilate not only how the US thinks, but they are very good at formulating Long Term National Strategies maximizing their positions. On the other hand, our best and brightest just seem to be learning how to get rich in the short term. Unfortunately, the end game indicates that we will all be Chinese one day.

China's State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons.

Oil Drops Below $60 , IEA to reduce Demand Estimates Further

New Deal Democrat wins the Prediction Prize by going against the tide and predicting oil would drop when almost all were predicting $200 oil.

Oil Falls to 19-Month Low, Gasoline Tumbles, on Demand Outlook:

The IEA, which coordinates energy policy in 28 developed countries, will reduce the estimated growth in global demand for a third month in a report tomorrow, according to four former IEA analysts. Energy prices also dropped because of declining equity markets and a rising U.S. dollar.

``It all comes back to the economy and how deep folks think the recession will be,'' said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. ``Demand is poor and should get worse as the recession deepens.

Commodities Like a Balloon After a Pin is Stuck in It

Balloon Pop with a Pin

Confidence is at rock bottom. No one wants to be long any commodity. - Jamie Craggy (source Bloomberg)

It appears that New Deal Democrat maybe right on possible deflationary recession.

Oil, Copper, Commodities in Freefall as Economic Woes Deepen:

Crude oil and copper led a drop in commodities, extending a record quarterly decline, on expectations an economic slump will sap demand for raw materials.