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Stool Factor!!! We report. You decide!
The stunt behind this article was designed by professional stunt men and should be freely reproduced and reposted, anywhere, anytime, with attribution to Capitalstool.com and a link to the source page: http://www.capitalstool.com/stoolfactor.htm Dr. Stool says, Many Tanks for your support! Stool On! PPI? You Can't Handle The Truth! 2/28/04
What's the truth about why the Feederal Gummit didn't release the PPI as scheduled this week? Dig around the Feed's website long enough and you'll come up with a brown smelly nugget or two, amongst the piles of bullshit. Here are two pictures which give clear hints of things to come. All you need do is put 2 and 2 together and the truth comes out. The answer is not 3, as US Ministry of Information flacks would have you believe. No dear friends, the answer is most assuredly 4, and may be even 5, if you count the 1/2's that don't show up in the data. First we have the total PPI. Producer
Price Index Even investors with no knowledge of technical analysis know what a resistance level is. And you know what happens when big resistance levels are breached. Breakout City. Since 2002, the PPI change rate has risen by 7%. This is an enormous turnaround in two short years. As of December, the index sat squarely on a four year resistance level showing PPI increasing at an annual rate of 4%. If we look only at the PPI for
consumer goods, the picture is even worse. The total swing from low to high
has been 9%, and the annual rate of increase was at 5%. Can there be any doubt as to what happened next, and why the Gummit would panic into not publishing the data? Very simply, they are trying to fix and fudge the numbers so that the breakout in this month's data can be minimized. The breakout would imply a target rate of 11% in the total PPI , and 14% in Consumer Goods PPI. In case you should have any doubt, I would refer you to the Journal of Commerce Industrial Price Index, with data collected on a daily basis right up to today. Their data, with components similar to the PPI, shows the index at 114.0 as of Friday, 108.7 a month ago, 103.4 three months ago, and 89.4 a year ago. That January to February jump alone was nearly 4.9%, which we won't even bother to compound to an annual rate. The three month change compounds to an annual rate of 47.75%. The actual rate of change over the past year is 42.56%. While the PPI is a broader index including both raw and intermediate goods, there can no doubt that the numbers for January are not going to be market friendly. No wonder they don't want the markets to see the truth. They think you can't handle the truth, and you know what? They're right. The bond market would implode if the truth were made public. But as long as they play hide and seek, bond investors can continue to play make believe. Finally, on another note, I will leave you with this. Fed officials have been heard remarking of late that households have been improving their financial condition by refinancing to lower rate mortgages. Take a look at this.
Does that look like improvement
to you? All this "improvement" was going on while interest rates
were doing this. Hmm. Could it be that artificially suppressed interest rates might not be a good thing because they encourage economic units to take on too much debt? What do you think? Voice your opinion on the Stool Pigeons Wire. Did you like this article? There's more where it came from. Support the Stool! 30
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