Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Thursday, December 13, 2007

Inflation Up! Consumers Charging! Go, Baby, Go!

U.S. November Producer Prices Increase 3.2%, More Than Double Estimates Prices paid to U.S. producers climbed at the fastest pace in 34 years in November, pushed up by surging costs for fuel. Excluding food and energy, prices rose the most since February.

XX My take -- this is obviously inflationary, but we can expect the Fed to ignore it. They're concentrating on bailing out bankers who made bad loans now. The Fed doesn't give a flying fig for inflation.

Retail Sales Rise Twice as Fast as Forecast, Easing Concern Over Recession Retail sales in the U.S. increased twice as much as forecast in November, easing concern near-record fuel prices and falling home values would trip up consumers.

XX my take -- Consumers are content to melt plastic. I have to admit this one surprised me. Bottom line: This should be bullish for commodities.

Check out my new gold and energy blog at