“March 2021 Producer Prices exploded across the board, with record levels of annualized First-Quarter 2021 Inflation of 8.99% for Total PPI-FD, 16.04% for PPI-FD Goods Sector and 5.62% for PPI-FD Services Sector (BLS)…On the more-meaningful Goods side, Energy and “Core” inflation hit respective historic annualized quarterly peaks of 78.80% and 7.11%…” – John Williams, Shadowstats.com
The price “deflator” used for the GDP calculation (excluding food and energy) was 2.3% – an absurdly fraudulent “estimate” of general price inflation. In reality the deflator should have been closer to 10% thereby implying that REAL GDP was negative in Q1. This is probably closer to reality given the lousy financial and economic condition of everyone below the top 10% of the wealth/ income demographic in this country.
But of course gold was monkey-hammered shortly after spiking higher when the GDP headline hit. It would look bad to have gold and silver shooting higher while the Fed is flooding the markets with printed currency and with price inflation raging.
Trevor Hall invited me onto his Mining Stock Daily podcast to discuss the current aggressive price control being implemented in the context of a sagging economy and raging price inflation (click on the pic below or list here: Mining Stock Daily):
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The mining stocks are once again historically cheap. In the latest issue I update several of my core portfolio recommendations plus profile Reyna Silver and the Fortuna/Roxgold merger. If you would like some ideas for investing in mining stocks, take a look at my Mining Stock Journal.