Since a long time it was my opinion that the US consumer price index has been designed to never show any meaningful inflation and that US GDP is systematically overstated.
In this excellent YouTube presentation Chris Martenson explains how THEY did it :
Yesterday in Paris, Axel Weber, chief of the German CB , in a WSJ interview said something like “if the 750 billion in the bailout fund should not be enough, we will fill it up. An attack on the Euro has no chance to succeed.” French business daily La Tribune reported a while ago that Sarkozy is opposed to Weber’s ascent to the ECB helm when Trichet’s term ends next autumn.
Just 4 weeks ago Weber called for the end of the bond buying program – a.k.a money printing – by the ECB. Apparently Mr. Sarkozy can be very convincing. I wonder how Mr. Weber is going to mop up all this liquidity when he will be in charge.
Chris Martenson in his latest article on 321energy ” I cannot state this strongly enough: The WEO 2010 report is an official admission that Peak Oil is not only real, but it’s already here.”
US Export Prices – M/M change 0.8 %, Import Prices – M/M change 0.9 %
Data Source: Haver Analytics
Weimar Ben says Not Enough Inflation …
Unemployment at 9.1% — up slightly from 8.9% at the end of July
by Dennis Jacobe, Chief Economist
PRINCETON, NJ — Underemployment, as measured by Gallup, is 18.3% in mid-August, essentially unchanged since the end of June. Underemployment peaked at 20.4% in April but has not been able to break below its current level this year.
U6 “Household Survey ” shows 16.8% for July, NSA.
* *August 2010* **
My view is that the economy is going through a temporary lull and business
conditions will improve later this year and in 2011. Europe may be an
example. When the financial crisis hit and the markets were worried that
“contagion” from a possible Greek default would not only put Europe into
recession, but spread to other parts of the world, austerity programs were
announced by many countries and they were expected to reduce demand
seriously. Now the European recovery seems to be continuing, exports are
strong and the surprises are occurring on the favorable side.