We’ve hit another SHTF news crescendo to warrant another post. Isn’t that a great word, “crescendo”? It just sounds nice . . . say it with me, c’mon. “Kri-shen-doh.” Aaaaaaah, it feels good . . . . anyway.
Isn’t that a crappy word? Say it with me – “ugh”. The Labor Department released a new report yesterday stating that inflation at the wholesale level soared in January at the highest rate in 16 years! One percent in one month! Food, energy, and health care costs were the primary drivers. What does this mean for the Feds cutting interest rates? Difficult decisions must be made. Read:
The combination of rising inflation and weaker growth raises the threat of “stagflation,” the economic malady that plagued the country through the 1970s, when a series of oil shocks left households battered by the twin problems of stagnant growth and rising prices.
With the January jump, wholesale prices have risen over the past 12 months by 7.5 percent, the fastest increase since the fall of 1981, when the country was in a deep recession.
Food prices, which have been surging because of increased demand stemming from ethanol production, rose by 1.7 percent last month, the biggest monthly increase in three years. Prices for beef, bakery products and eggs were all up sharply.
Source is here. The more important question is: what does this mean for YOU! Death! Mayhem! Anarchy! Maybe not quite that bad, but it doesn’t look good. You (unless you’re rich) will feel the economic pinch even harder. Something will eventually have to give and the market will correct itself. The question is . . . when? The question is . . . how FAR must the economy sink before it comes out the other side?
Consumer confidence? That has plunged, too.
Woo-hoo! We road the real estate ride for too long, prices went stupid high, people kept buying, and shows called Flip this House were the norm leading everyone to think making money in real estate was easy, simple and brainless. Uh huh. Speaking of January reports, foreclosures jumped 57% compared to a year ago! What goes up, must come down. Read:
Nevada, California and Florida had the highest foreclosure rates in the nation. During the housing boom, all three states recorded big price run-ups, and saw a large proportion of homes sold to investors. In Nevada, one of every 167 homes was in some foreclosure stage last month.
California had the largest total number of foreclosures among the states. There were more than 57,000 foreclosure filings there in January, one for every 227 homes. Florida trailed well back in total foreclosures with 30,000, but its rate of one for every 273 households was only slightly behind its West Coast rival.
Several states recorded massive jumps in foreclosure activity in the last twelve months. In Rhode Island filings rose 279%; in Maryland they spiked 430%; and in Virginia they leapt 634%.
Source is here.
We should all know by now that Kosovo has declared its independence much to the dismay of Serbia and Russia and that Serbian protestors smashed their way into the American embassy and set it ablaze. But did you catch the most recent Serbian news? They inked a gas pipeline deal with Russia to deliver natural gas to western Europe. Russia is on a move to position themselves so they can use their energy resources as political muscle. The divisions between Russia and its allies with the U.S. and western Europe are growing again. Does anyone else sense a second Cold War coming?
– Ranger Man
BTW: watch blonde Serbian women loot a clothing store in Belgrade during the U.S. embassy protest confusion and anarchy. They took chocolate, designer bags, shoes and clothes. Now they’re online stars!