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View Full Version : Yippee! No inflation!



Methanolandbrats
05-11-07, 09:46 AM
Except for food and energy, prices are not going up. Hell, who need food and energy? I'm not going to buy anymore energy or food, I'll walk to the WalMart, carry home a bundle of Chinese Shirts and eat them in the dark. That way I can enjoy the prosperity of a booming economy and market.

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Prices Stable Except for Gasoline
By MARTIN CRUTSINGER


WASHINGTON (AP) - Inflation at the wholesale level eased slightly in April even though gasoline prices surged for a third straight month.

Wholesale prices rose 0.7 percent last month, down slightly from a 1 percent jump in March, the Labor Department reported Friday. The big force driving the increase was an 8.2 percent jump in gasoline prices, which followed increases of 8.7 percent and 5.3 percent in the two previous months.

But outside of the volatile energy and food sectors, prices were unchanged last month, the second straight reading of zero for the closely watched core inflation index.

In other economic news, the Commerce Department reported that retail sales fell by 0.2 percent in April.

That was weaker than the 0.4 percent rise that economists had been expecting and followed a survey released Thursday showing that the nation's big chain retail stores had a disappointing April which they blamed on rising gasoline prices and the slumping housing market.

The 0.7 percent increase in the Producer Price Index, which measures inflation pressures before they reach the consumer, was in line with expectations. The zero reading for the PPI excluding food and energy was better than expected, providing welcome news for officials at the Federal Reserve.

The Fed on Wednesday signaled that it continued to be more worried about the threat of inflation than the year-long slowdown in economic growth.

However, other economists believe the economy could be vulnerable to a possible recession, especially if the troubles in the housing sector deepen and the recent spike in gasoline prices triggers a cutback in consumer spending on other items.

Gasoline prices have surged to a record nationwide average of $3.07 per gallon, nearly 20 cents higher than two weeks earlier, according to the latest Lundberg Survey. That surpassed the old record of a nationwide average of $3.03 per gallon set last August.

Food prices, which had been surging, rose a more moderate 0.4 percent in April as big increases for vegetables, beef and chicken products were offset by declines for eggs and fruit.

Energy prices rose by 3.4 percent, led by the 8.2 percent increase in gasoline but also reflected a 8.7 percent jump in liquefied petroleum gas and a 4.8 percent jump in home heating oil.

Outside of food and energy, the unchanged performance of core inflation reflected a decline of 1 percent for new cars and a 0.5 percent drop in the category that includes sport utility vehicles.


05/11/07 08:45 © Copyright The Associated Press. All rights reserved. The information contained In this news report may not be published, broadcast or otherwise distributed without the prior written authority of The Associated Press.

KLang
05-11-07, 10:07 AM
If you think there is a problem, what would you propose as a remedy?

Methanolandbrats
05-11-07, 10:33 AM
The way inflation is calculated is stupid. For most middle and low income families, energy and food are huge parts of the budget and they are not discretionary items. And since inflation eventually slows consumer spending and tanks the economy, a more realistic method of measuring inflations impact on average families would hopefully lead to better policy decisions.

chop456
05-11-07, 10:52 AM
http://www.uclick.com/feature/07/05/07/sc070507.gif

Methanolandbrats
05-11-07, 12:01 PM
http://ctbiodzl.freeshell.org/JJ_wvo_tdi.jpg

;)

nrc
05-11-07, 12:12 PM
The BLS publishes CPI numbers with and without energy costs. It's just data.

cameraman
05-11-07, 12:26 PM
http://ctbiodzl.freeshell.org/JJ_wvo_tdi.jpg

;)

Too bad you can't buy a new one this year...

chop456
05-11-07, 12:36 PM
;)

Looks familiar except for the preheater plumbing.

And it's clean. :D

Andrew Longman
05-11-07, 01:23 PM
The way inflation is calculated is stupid. For most middle and low income families, energy and food are huge parts of the budget and they are not discretionary items. And since inflation eventually slows consumer spending and tanks the economy, a more realistic method of measuring inflations impact on average families would hopefully lead to better policy decisions.

Its screwed up for a number of reasons. Healthcare doesn't show up in most calculations because it is mostly paid for through insurance and payroll deductions. But in the other direction it also doesn't take into account that many items, such as cars, appliances, tires, etc. while costing more often last far longer than previously.

But that's what keeps economist and talk radio jocks employed.

eiregosod
05-11-07, 01:59 PM
If you think there is a problem, what would you propose as a remedy?

would help if there was no speclation in the oil market, and if the oil companies didn't shut down their refineries for "maintainance".

Methanolandbrats
05-11-07, 02:32 PM
would help if there was no speclation in the oil market, and if the oil companies didn't shut down their refineries for "maintainance".Yes it would. It would also help if they put some money into building excess refinery capacity in times when they don't need it. The oil industry long term planning is quarter to quarter just like every other publicly traded company..............it's the nasty consequence of valuing companies based on earnings rather than dividends.

Indy
05-11-07, 07:25 PM
http://ctbiodzl.freeshell.org/JJ_wvo_tdi.jpg

;)

That is my next car. This time, I had to settle for the gas engine because there were no diesels available due to the redesign. I am planning on the '09 Passat TDI.

Ankf00
05-11-07, 11:26 PM
would help if there was no speclation in the oil market, and if the oil companies didn't shut down their refineries for "maintainance".

you should put effort into becoming informed about the specifics involved with running a refinery before claiming phantom maintenance.

Stu
05-12-07, 07:33 AM
Yes it would. It would also help if they put some money into building excess refinery capacity in times when they don't need it.

I'm sure they would, if the hippies would allow them to. But we haven't seen a new refinery built in the US in over 30 years.

FTG
05-12-07, 08:02 AM
Oh well. Economics is more interesting than hard cards. Here's what an expert says about inflation.


http://www.slate.com/id/2165787

FTG
05-12-07, 08:06 AM
you should put effort into becoming informed about the specifics involved with running a refinery before claiming phantom maintenance.


If you guys want to discuss restricting supply to raise prices and therefore profits, you really should discuss the medical industry. Someone who can't afford gas, can always take the bus. Someone who can't afford medication, has fewer options.

Ankf00
05-12-07, 11:59 AM
I'm sure they would, if the hippies would allow them to. But we haven't seen a new refinery built in the US in over 30 years.

doesn't mean refining capacity hasn't increased. at present there are two major refinery expansions underway, one for shell/motiva in the golden triangle (which actually is a brand new facility in its own right), and Marathon's adding something like 250,000 bpd capacity over in Garyville, LA. I believe average per plant is somewhere around 218K bpd.

racermike
05-12-07, 07:47 PM
We are at $3.49/g minimum here in Southern Oregon. Diesel is parked at $2.99/g.

Maybe time to start thinking about buying that Turbo Diesel Jetta I have always liked.

Methanolandbrats
05-12-07, 08:15 PM
We are at $3.49/g minimum here in Southern Oregon. Diesel is parked at $2.99/g.

Maybe time to start thinking about buying that Turbo Diesel Jetta I have always liked.
Great cars, I've got a 97 Passat TDI. Going to buy an 08 Jetta Sportwagon TDI which will be available early next year. Right now you can only find 06 Jetta TDIs for sale new. No 2007 model year cars because of emissions law changes. I'd wait for the 08 because they are going back to common rail injection. Great resource for all things VW oil burner is http://www.tdiclub.com/ Check out the FAQ and forums.

Insomniac
05-13-07, 01:16 PM
would help if there was no speclation in the oil market, and if the oil companies didn't shut down their refineries for "maintainance".

Oil companies are out to make money, all the mergers have shrunk it down to two major US players left (Chevron and ExxonMobil) and two british/dutch ones (BP and Shell). They can now collude much more easily. They are fast to incease prices as soon as a potential "crisis" is their and take their time bringing it back down after it has passed. The FTC allowing these mega-mergers were not helpful to the consumer at all.

Insomniac
05-13-07, 01:29 PM
If you guys want to discuss restricting supply to raise prices and therefore profits, you really should discuss the medical industry. Someone who can't afford gas, can always take the bus. Someone who can't afford medication, has fewer options.

The pricing in the medical industry isn't really a result of supply but more because they can charge that much. How much more complex do you think the Indpendence iBot 4000 wheelchair (http://www.ibotnow.com/ibot/) is than the Segway i2 (http://www.segway.com/personal-transporter/model_i2.html)? The cost is $26,100 vs. $5,000. How about a standing frame with a glider (http://www.easystand.com/evolv-glider/index.cfm): $6,000??? I understand R&D costs, but this is a bit exorbitant. Everything has a very, very big markup. All the way through the distribution channel. It's marked up grossly by the manufactrurer, and then marked up grossly by the provider. If you call them and ask about the cost without insurance, there will be a pretty substantial discount, and they are still making a profit.

The medical industry will suck every penny they can out of you. How much money would you spend to stay alive? Almost everything is severly overpriced and can be negotiated down (insurance companies already do this to an extent).