Net Long-Term TIC Flows Up to $67.0 Billion, Total Flows Down to -$2.5B
(CEP News) - Net long-term TIC flows came in below the consensus forecast, totalling $67.0 billion in May, while total TIC flows for the month fell to -$2.5 billion, according to data released by the U.S. Treasury on Wednesday morning.
TD's Charmaine Buskas wrote, "There was a broad-based scaling back in appetite for U.S. Treasuries by foreign investors who purchased only $7.7 billion in May, compared to $76 billion in April. The steady appetite for U.S. securities in April is encouraging to the extent that it funds the May trade gap of $59.8 billion, but it is clear that U.S. securities are looking a lot less attractive to foreigners lately."
U.S. June CPI up 1.1 pct; core CPI up 0.3 pct, headline figure at 26-yr high
WASHINGTON (Thomson Financial) - The largest increase in commodity prices on record pushed consumer inflation in June to its fastest monthly rise since the early 1980s, the Labor Department said today.
Overall prices rose 1.1 pct, the fastest monthly gain since June 1982, while core inflation, which strips out volatile food and energy prices, rose 0.3 pct in the month. Economists polled by Thomson Reuters IFR Markets expected a 0.8 pct increase for the headline number and a 0.2 pct core increase.
Overall inflation has risen an unadjusted 5.0 pct in the year ending in June, the largest annual rise since May 1991. Core inflation has risen an unadjusted 2.4 pct over the last 12 months, matching March's yearly gain.
On a seasonally adjusted basis, overall inflation rose at a 7.9 pct annualized pace in the last three months. Core inflation has risen at a 2.5 pct annualized pace in the past three months, well above the Federal Reserve's "comfort zone" of around 2.0 pct.
Energy prices rose 6.6 pct in June after rising 4.4 pct in May, while food prices rose 0.8 pct after rising 0.3 pct in May. Commodities prices rose 1.9 pct in June, the largest ever monthly gain since the department began collecting records in 1956.
The inflation pressures left real average weekly earnings down 0.9 pct for the month, the third straight month when wages have not kept up with rising prices and the sharpest drop in real earnings since August 1984.
For the year, real average weekly earnings fell 2.4 pct, the largest annual drop since September 2005. Average hourly earnings, which are not adjusted for inflation, rose 0.3 pct for the second consecutive month.
This is VERY bad news for the buck. Inflation is accelerating and nobody wants to buy this nations debt. And the Dollar rose? LUDICROUS! They say there's a fool born every minute. The birth canal for fools must have burst this morning. "With inflation like this, the Fed will have to begin raising interest rates ASAP." Yeah, right. The US Financial Industry is on the brink of extinction, and the Fed is going to raise interest rates? Yeah, right...again. Wise up fools! There are NOT going to be ANY interest rate increases at the Fed anytime soon. The Fed is now 100% committed to printing money as fast as they can, and as much of it as they can. How else could they hope to bailout the floundering Mortgage Twins?
Oil prices tanked again today. So what! Oil is WAY OVERDUE for correction. Will we get a 20% correction in Oil prices? It remains to be seen... But again, so what! Oil is NOT the cause of inflation, the printing of money around the clock by the US Federal Reserve is. A drop in Oil prices is NOT going to make inflation go away. Selling your Gold and Silver positions on a drop in Oil prices is STOOPID, a fool's game. The headlines above give you all the reason you need to buy and KEEP Gold and Silver as protection against the ravages of monetary inflation. Relative to Oil, Gold and Silver remain SCREAMING BUYS.
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