Gold & Silver “Sell Off” Prior To Release Of Latest Inflation Report, Used Car & Truck Prices Get The Blame For The Blazing Inflation

The Ministry of Plenty has just released its Consumer Price Index for May, 2021, and among other things in the report, used car & truck prices are key scapegoats…

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Half Dollar’s Note: On Wednesdays I produce a Midweek Market Report over at the best online gold & silver bullion dealer’s website, and that report includes a written article as well as video analysis.

Here’s an excerpt from yesterday’s report:

A deer is grazing alongside the highway at dusk.

Even with the windows rolled down and the stereo cranked up, it is a calm drive. The so-called “meme stocks” are going bonkers while the overall stock market goes nowhere. Gold & silver are stuck at $1900 and $28 respectively, again. Market participants are biting their nails as they wait for the latest consumer price index that will be released only days before the Fed’s mid-June meeting, a meeting in which the hottest gossip around will be whether the Fed is thinking about tapering, or not. The something-trillion-dollar US Federal budget and the massive spending bills are kind of, sort of coming together, and if all of that wasn’t one great big giant steaming pile of mediocrity, VP Harris has been uncomfortably spicing it up in Latin America while President Biden gets ready to awkwardly rock the global stage on his first European tour.

Perhaps it’s best to take up gardening or something?

The video analysis is top-notch as well, if I do say so myself (also from yesterday’s report):

So do check out yesterday’s report in its entirety!

Finally, in my Midweek Market Report, I often give very specific examples of exactly why the inflation all around is only going to get worse from here, so also check out prior reports if you have not done so already.

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(by Half Dollar) The BLS has just released its latest inflation report, the May Consumer Price Index.

Here’s a graphical breakdown of some of the latest numbers, produced by the BLS:

According to the BLS, inflation is up 5% this May from a year ago, while prices are up 3.8% when “excluding food and energy”.

The “all items less food and energy” is what is commonly called “core”.

Here’s a pretty little chart, also produced by the BLS:

Can you imagine what inflation is going to feel like for hard working Joe Deplorable if prices for things such as gasoline keep rising like they are?

Yikes!

In my opinion, the BLS is happy to plant the seed that used car and truck prices are to blame, as evidenced by specifically mentioning used car and truck prices in the second paragraph of this month’s report (bold added for emphasis and commentary):

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.6 percent in May on a seasonally adjusted basis after rising 0.8 percent in April, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 5.0 percent before seasonal adjustment; this was the largest 12-month increase since a 5.4-percent increase for the period ending August 2008.

The index for used cars and trucks continued to rise sharply, increasing 7.3 percent in May. This increase accounted for about one-third of the seasonally adjusted all items increase. The food index increased 0.4 percent in May, the same increase as in April. The energy index was unchanged in May, with a decline in the gasoline index again offsetting increases in the electricity and natural gas indexes

The use of “rise sharply” is interesting, as well as saying that we can just throw out a good chunk of the report and blame the inflation on those sharply rising used car & truck prices, but if one really thinks about it, most people on an individual basis aren’t buying used cars or trucks all that often, so therefore, when the BLS plants the seed that it’s rising used vehicle prices that are to blame for the inflation, well now, that’s some good relief for anybody who’s not in the market for a used gas guzzler, isn’t it?

There is another interesting dynamic when it comes to the very nature of inflation itself, however, which will be harder for the BLS to control via propaganda: Buy now before the price goes up.

I’m sure used car dealers are saying that with every chance they get.

That is to say, even taking the Bureau of Lying Sadists Labor Statistics CPI report at face value, with no pun intended, and something I would not take, a person who is in the market for a used car but is suffering from “purchase hesitancy”, for lack of a better term, has to pony up over 7% more on average for that car just for delaying the purchase by one month!

In other words, last month, it was widely reported that used car prices, on average, surpassed $25,000 for the first time ever, and if we want to think about that price point in terms of percentages, 10% of $25,000 is $2,500.

A not insignificant amount, indeed!

Gold & silver were hammered lower overnight, this morning, and into the release of the report:

And then knee-jerked higher after the report was released at 8:30 a.m. EST.

Developing…