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Consumer Price Index – Down (a bit)



Back in the saddle after two weeks of R&R it is strange to see the world’s problem to be the same they were a fortnight ago.  The British characterization of the GOP as a “Bunch of Nutters” was a good expression of the world’s view of America, and to a certain extent the exasperation of seeing an artificial crisis.  Despite what the GOP is saying that we got to put the credit card away, the debt ceiling crisis is about having spent the money and not wanting to pay the bill.  So far the markets are calm, down a bit, but nothing to set your hair in fire.

Up here in the Frozen North, statistics do not wait for those on holidays!  Consumer price index for June was released in Friday, while not as bad as May’s number of 3.7%, 3.1% is hardly a source of happiness, especially when you consider that the two outstanding items were food (4.8%) and energy (15%) – with Gasoline up 28%...

Nevertheless, prices on a seasonally adjusted basis were down 0.4%, so there is something to cheer!  Markets are still not pricing much of an increase in interest rates.  Friday’s Greek solution seems to be a walk in the right direction – although the proposal is extremely complicated so it is hard to see how this will work out.  One thing for sure it assumes that Northern Europe’s taxpayers will continue to support governments that support “perceived” largesse’s, and that governments in Southern Europe will be able to maintain the current level of tightening.  

American’s countdown to stupidity continues, with the GOP holding a gun to America, they look crazy enough to pull the trigger, as one GOP member commented last week: “there’s not much point in taking hostages, unless you are ready to execute them” Yep that from an elected member of Congress!

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