I believe that you are right to see the PPI number as an ominous development for the inflationist's solution A deflationary spiral is part economic and part psychological and to get out of one is a very tricky proposition even for the Fed with its control of effectively unlimited public funds So far despite all of the efforts to boost asset prices, there is no urgency in the supply chain and no real pricing power because those in the front line know that there is still a notable timidity in final demand.
-
I believe that you are right to see the PPI number as an ominous development for the inflationist's solution
Oct 20 13:10 pm
|Rating:
+7
0
All Comments by morph366 »PPI: An Economic Frost Warning [View article]
A deflationary spiral is part economic and part psychological and to get out of one is a very tricky proposition even for the Fed with its control of effectively unlimited public funds
So far despite all of the efforts to boost asset prices, there is no urgency in the supply chain and no real pricing power because those in the front line know that there is still a notable timidity in final demand.