Bernanke & China---- Screwing Americans- and the ISM
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Monday’s main data point came from the ISM Manufacturing Survey. The report was better than expected; however, there is a pesky thing going on inside it: much higher prices paid for the raw materials that churn out the goods.
In the report we read:
Economic activity in the manufacturing sector expanded in April for the 21st consecutive month, and the overall economy grew for the 23rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
WHAT RESPONDENTS ARE SAYING ...
The ISM Prices Index registered 85.5 percent in April, 0.5 percentage point higher than the 85 percent reported in March and the highest reading since July 2008 when the index registered 88.5 percent. This is the 22nd consecutive month the Prices Index has registered above 50 percent. A Prices Index above 49.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.
Of the 18 manufacturing industries, 17 report paying increased prices during the month of April. No manufacturing industry reported paying lower prices on average in April.
But don’t worry about those higher prices folks – the lower prices of iPads will offset them…so says Mr. Dudley of the Fed.
Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
In the report we read:
Economic activity in the manufacturing sector expanded in April for the 21st consecutive month, and the overall economy grew for the 23rd consecutive month, say the nation's supply executives in the latest Manufacturing ISM Report On Business®.
WHAT RESPONDENTS ARE SAYING ...
- "Rapidly rising raw material costs putting extreme pressure on profits." (Food, Beverage & Tobacco Products)
- "Plastic resin product prices are climbing so fast that [suppliers] are attempting to increase prices on orders already accepted but not [yet] delivered." (Chemical Products)
- "Customers are rebuilding safety stock levels of inventory, and also trying to buy ahead of material price increases." (Plastics & Rubber Products)
- "Market continues to get stronger month over month. Recovery is faster than anticipated." (Transportation Equipment)
- "Pressure from offshore suppliers continues to mount with exchange rate increases and seasonal demand for capacity." (Miscellaneous Manufacturing)
The ISM Prices Index registered 85.5 percent in April, 0.5 percentage point higher than the 85 percent reported in March and the highest reading since July 2008 when the index registered 88.5 percent. This is the 22nd consecutive month the Prices Index has registered above 50 percent. A Prices Index above 49.4 percent, over time, is generally consistent with an increase in the Bureau of Labor Statistics (BLS) Index of Manufacturers Prices.
Of the 18 manufacturing industries, 17 report paying increased prices during the month of April. No manufacturing industry reported paying lower prices on average in April.
But don’t worry about those higher prices folks – the lower prices of iPads will offset them…so says Mr. Dudley of the Fed.
Trade well and follow the trend, not the so-called “experts.”
Behold the age of infinite moral hazard! On April 2nd, 2009 CONgress forced FASB to suspend rule 157 in favor of deceitful accounting for the TBTF banksters.
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