This is lifting gold and silver prices today, plus inflation worries and real estate.

Boosting Gold & Silver Prices
October 14 (King World News)
 – James Turk:  
The IMF gives the green light to Modern Monetary Theory. Gov’ts can supposedly “borrow freely” without consequences. Get ready for global acceleration in fiat currency creation and MMT hyperinflation. Buy physical gold & silver to protect your purchasing power.

Real Estate
Peter Boockvar:  
Mortgage applications to buy a home fell for the 4th week in the past 5 as maybe its digesting the recent sharp gains. They were down by 1.6% w/o/w. Even so, they are still up 24% y/o/y reflecting the rest taking place at still a high level. The average loan size moderated from the record high seen last week.

Average Mortgage Ballooning Along With Home Prices

While not yet reaching that point, I’m still on the lookout as to when the aggressive price increases now taking place again will start to slow the pace of transactions as it offsets the benefits of lower mortgage rates. Refi’s were unchanged but still up 44% y/o/y although that is a slowing pace…

To learn which company billionaire Eric Sprott just bought a
$10 million stake in
 click here or on the image below

Producer Prices Increasing
September PPI rose .4% m/o/m both headline and core, double the estimate for each. Versus last year, headline PPI was up .4% vs -.2% in August while the core rate was higher by 1.2%, twice the gain seen in August. Contributing to the rise was an increase in both goods and service prices with both higher by .4% m/o/m. Food prices rebounded by 1.2% m/o/m after a few months of giveback. Energy prices fell by .3% m/o/m.

Inflation Beginning To Make A Comeback

Increasing Transport Costs
As seen in the chart below, the average truck mile continues to get more expensive but the BLS said that ‘truck transportation of freight’ was down .5% m/o/m and 1.3% y/o/y. Thus I believe the large transportation price increases will eventually show up in this index. On the other hand, as seen with the stock performance and pricing power of FedEx and UPS, ‘air transportation of freight’ rose 4.2% y/o/y.

Truck Transport Becoming More Expensive

More Inflation
The desire to get outside was reflected in the huge price spikes in RV’s, trailers and campers. Prices here rose 32% m/o/m and 58% y/o/y. Reflecting the big improvement in housing, the prices for ‘major household appliances’ jumped 4.9% m/o/m and 11.5% y/o/y. We saw the rise in car prices in yesterday’s CPI, in today’s PPI ‘automobiles and automobile parts’ prices fell 2% m/o/m but after sharp spikes in the two prior months and are still up 32% y/o/y. Apparel prices remain subdued, down both m/o/m and y/o/y, as back to school was obviously disrupted. Travel prices were down sharply not surprisingly.

Also of importance in the growing inflationary pressures being seen here was the sharp increase in the intermediate stage of production where processed goods prices ex food and energy jumped by 1.3% m/o/m and core unprocessed goods jumped by 7.2% m/o/m. Services prices at the intermediate stage was higher by 1% m/o/m.

Bottom Line
Bottom line, while there was no market reaction to this data as there rarely is with the markets more focused on producer prices, I think the growing price pressures that I’m seeing and hearing about from companies is showing up in the numbers. Keep in mind with the y/o/y numbers that seem subdued but the comparisons were tough last year.

Massive Flight From Major Cities But Look At California
***ALSO JUST RELEASED: Massive Flight From Major Cities But Look At The Shocking Things Happening In California, Once Considered A Paradise

***KWN has now released this timely and powerful audio interview with Michael Oliver and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

© 2020 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged.