Dee Feat is in Dee Flation, Part 16

The new CPI/PPI numbers are out here, for example (lines for Dec 15 and Dec 16). As usual, we remain on the edge of outright deflation. I posted another Fat Man short piece this week; that one was happenstance, I wasn't expecting confirmation to fall from the heavens like Manna. Jesus loves me! He really loves me. What follows is from a previous Dee Feat piece, regurgitated for your enjoyment. I picked one at random because it saves typing in a whole new file name; doing it this way, I only have to replace the iteration number. Luckily, it deals with both Dee Flation and Fat Man. Yeah, I'm just a lazy good for nothing.

The assertion that there has to be inflation just because the Fed has eased interest rates and cost of reserves to the Banksters doesn't mean that inflation is on the horizon. It's been on the horizon, of the Tea Baggers and Banksters, for a couple of years now. Nuthin'. And for good reason. None of the money makes its way into the economy. Banksters and Capitalists are sitting on an unprecedented cache of cash. Misers all. "It's mine, all mine, and I'm keeping it. Just in case my greed causes an even worse Recession." Which is what the slier among them want, deflation increases the value of their cash cache, and they've got to do nothing to get the "return on investment". Consummate evil. Bernanke may have study the shit out of the Great Depression, but back then corporations were hurt by it. These, except for the occasional bank, have been swaddled in cash. Which they hoard, hoping for deflation. Mark my words; I've said it before.

Once again, three sources of inflation: cost push, wage push, demand pull. Wages are falling (median income was recently reported to have gone down some more, thanks Dubya) none from there, incomes are stagnant (which is why companies, when anyone bothers to ask, don't complain about wages but "lack of demand") so none from there, leaving only scarcity of goods to drive costs up (and that can only be sustained if consumers have the $$$ to pay the higher cost) and that's not been happening, either. In any case, with a 70 to 80 percent service economy, cost push is an outlier in the best (so to speak) times.