The BLS told us today that' a pipedream when it comes to finished goods:
Here are the goods numbers from the BLS over the past year. As you can see, the PPI doubled to .8 in NOvemeber from .4 in October:
2010 1.3 -0.5 0.8 -0.1 -0.3 -0.4 0.1 0.5(P) 0.4(P) 0.4(P) 0.8(P)
My Take:
You can thank the Fed and it's QE currency trashing policy for this sudden rise in goods. Rememeber: The Fed came out with QE on November 3rd which means the inflation rate essentially doubled following their announcement from the previous month.
This works out to a 9% inflation rate annually which is brutal considering unemployment remains at 9.8% and closer to 20% when you include the people that have rolled off of UE benefits or simply given up trying to find a job.
The bond market didn't like this one bit:
Bonds HATE inflation and sold off hard on the news following a rally yesterday thanks to some large Fed QE bond purchases.
We also had Best Buy come out with horrific earnings news for their fiscal Q3(which included Black Friday sales):
"During the fiscal third quarter of 2011, Best Buy’s revenue decreased 1 percent to $11.9 billion, compared with revenue of $12.0 billion for the third fiscal quarter of 2010. The decrease reflected a 3.3 percent decline in comparable store sales, partially offset by the impact of net new stores in the past 12 months. The Domestic segment’s fiscal third quarter revenue totaled $8.7 billion, a decrease of 3 percent versus the prior-year period."
Bbbut.....I thought the economy was recovering. Well, one of your largest retail bell weathers just told you sales suck so I don't know what tell ya.
Of course, stocks rallied on the news as the robots continue the "Pollyanna" trade in their own little dream world.
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