Oil's spike contributed most to the month over month rise, climbing +6% sequentially. The aggregate month over month PPI increase was +1.8% versus May.
Stagflation is finally here for Bernanke to address. The facts will not cease to exist because he ignored them.
Bernanke: "upside risks to inflation have intensified, while significant downside risks remain to growth"
This is stagflation, defined.
get free cartoon of the day!
Start receiving Hedgeye's Cartoon of the Day, an exclusive and humourous take on the market and the economy, delivered every morning to your inbox
By joining our email marketing list you agree to receive marketing emails from Hedgeye. You may unsubscribe at any time by clicking the unsubscribe link in one of the emails.
"I would expect further declines out of China as it begins to shut down business to help the air pollution problem in Beijing for the Summer Olympics.
As a reminder China has indicated that from July 27-Sept 20th they will require Beijing and the 5 provinces surrounding it (Hebei, Inner Mongolia, Shanxi, Shandon and Tianjin) to comply with Beijing's air standards.
Furthermore it is estimated that Beijing will need 300m cubic meters of water to flush polluted and stagnated rivers, canals and lakes in central Beijing for the games -(
(Picture from MSNBC's This Week In Pictures: http://www.msnbc.msn.com/id/25626459/displaymode/1107/s/2/framenumber/9/)
This is the free money chart overlaid with the resulting boiling pot of inflation.
Stocks closed lower again in Japan overnight. The Nikkei is stagflating like their domestic economy is. Japanese stocks are "cheap" relative to a lot of countries that are expensive. You can run out and buy Japan on that, but I won't.
Pandit was however able to sell Citigroup shareholders his hedge fund, Old Lane, right before it blew up, and has since been paid handsomely irrespective of his shareholders losing large.