Inflationary Pressures

[HeadedHome]

Hey guys, just saw an official statement by Lowe’s Companies, who also happen to be a large customer of mine. According to their statement today, Lowe’s “is seeing unprecedented levels of price increases from suppliers, and are passing that along to consumers as (they) can.”

I also have a couple friends in the food industry, and they are doing exactly the same thing.

In my opinion, stagflation is not coming, it’s here. Fed is in a pickle, as any rate increase will further explode the housing market, but failure to do so will lead to spiraling inflation.

I’m typically a glass half full kind of guy, but I think the underlying fundamentals of our economy are facing some serious short and medium-term pressures.

What do you guys see, or what am I missing? The best opportunity for short-term easing of pain appears to be in the commodities area, especially oil. It seems that many people are more leaning toward the realization that there is a significant element of speculation in the commodities market. This has always been the case, but it does appear to be impacting the pricing more than in years past (e.g., oil demand has surged, but not sufficiently in the last 12 months to justify the price premium over that period).

Thoughts?

[cowboy]

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+June+2008.htm

[cowboy]

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+June+2008.htm

[cowboy]

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+June+2008.htm

[cowboy]

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+June+2008.htm

[cowboy]

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2008/IO+June+2008.htm

[HeadedHome]

Great article. Also, I think the only people even partially fooled are many in the American public. The stock market and commodities market doesn’t appear fooled by the low-ball inflationary reports. I’ve read several commodities analysts that believe the a part of the oil pricing is a built-in inflationary hedge against the “real” underlying numbers.

Here’s an article @ thestreet.com:
http://tinyurl.com/6p8ajo

[HeadedHome]

Great article. Also, I think the only people even partially fooled are many in the American public. The stock market and commodities market doesn’t appear fooled by the low-ball inflationary reports. I’ve read several commodities analysts that believe the a part of the oil pricing is a built-in inflationary hedge against the “real” underlying numbers.

Here’s an article @ thestreet.com:
http://tinyurl.com/6p8ajo

[HeadedHome]

Great article. Also, I think the only people even partially fooled are many in the American public. The stock market and commodities market doesn’t appear fooled by the low-ball inflationary reports. I’ve read several commodities analysts that believe the a part of the oil pricing is a built-in inflationary hedge against the “real” underlying numbers.

Here’s an article @ thestreet.com:
http://tinyurl.com/6p8ajo

[HeadedHome]

Great article. Also, I think the only people even partially fooled are many in the American public. The stock market and commodities market doesn’t appear fooled by the low-ball inflationary reports. I’ve read several commodities analysts that believe the a part of the oil pricing is a built-in inflationary hedge against the “real” underlying numbers.

Here’s an article @ thestreet.com:
http://tinyurl.com/6p8ajo

[HeadedHome]

Great article. Also, I think the only people even partially fooled are many in the American public. The stock market and commodities market doesn’t appear fooled by the low-ball inflationary reports. I’ve read several commodities analysts that believe the a part of the oil pricing is a built-in inflationary hedge against the “real” underlying numbers.

Here’s an article @ thestreet.com:
http://tinyurl.com/6p8ajo

[equalizer]

“The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.”

deduction of mileage expenses was 44.5 cents in 2006; this deduction increases to 58.5 cents in July.

[equalizer]

“The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.”

deduction of mileage expenses was 44.5 cents in 2006; this deduction increases to 58.5 cents in July.

[equalizer]

“The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.”

deduction of mileage expenses was 44.5 cents in 2006; this deduction increases to 58.5 cents in July.

[equalizer]

“The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2008. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008, as set forth in Rev. Proc. 2007-70.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2008. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.”

deduction of mileage expenses was 44.5 cents in 2006; this deduction increases to 58.5 cents in July.

[Author]

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