PPI Surges, Depression Incoming

Market Ticker: FIIIIRE! (PPI)

It gets worse in the intermediate category, which I remind you takes six to 12 months, minimum, to work through the system to the store shelf.

For comparison, here is 2008:

He is not wrong in what he says, but the example of 2008 shows that price increases don't have to make it through to the consumer. If instead demand collapses, these high costs will turn into losses for the businesses. 

The average price for oil in July is $105 through yesterday, down nearly 10 percent. Not enough to really dent inflation yet, but a start. The drop to the low $90s the past two days could double the percentage drop if it holds through the month.

Oil has topped though, and the pattern has a target of $65. Consider how bad things will be for $65 oil in the middle of a war with a government intentionally jamming oil prices as high as possible.