It's The Economy Stupid: CPI Increase 3.2%

CPI Year Over Year increase:  3.2% annualized rate, versus last month’s 2.7% increase

So, inflation is inching upward

Economists on the increase in food & energy:  “It’s Transitory.”

Transitory.

One could say that the Black Plague was ‘transitory.’

It's the Economy Stupid

Okay, Initial Jobless Claims were down, Continuing Jobless Claims were up, so the unemployment picture hasn’t brightened much.

 

The Producer Price Index increased at a rate of 6.8% annually, that’s up from 5.8% last month, so there’s some more inflationary pressure.

 

And for those of you who don’t eat, don’t drive a car, don’t use A/C during the summer, and aren’t going on a vacation this summer, The Producer Price Index Ex Food & Energy increase at a rate of 2.1% annually, that’s up from 1.8% last month.  So even for those lucky few there’s clearly and increase in price pressure.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

Importing Inflation?

Import Price Index For April 2011

 

Month On Month   2.2% increase    Prior Month Revised to 2.6% increase from originally reported 2.7%

 

Year On Year  11.1% increase   Prior Month Revised to 9.9% increase from originally reported 9.7%

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

 

Employment Report

Okay, a stunning employment report.  The number came in with an increase in Nonfarm jobs of 244K, the consensus estimate was only 185K, and the whisper number was an increase of only 160K.

 

Finally some good news on the economic front.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

Bin Laden's last Facebook entry...

 

From: Courtney Talbot [mailto:courtney.talbot@gmail.com]
Sent: Thursday, May 05, 2011 9:38 AM
To: Andree Ortego; John Broussard
Subject: Fwd: Bin Laden's last facebook entry...

 

 

 

 

It's The Economy Stupid

Initial Jobless Claims increase, 474K, substantially over economists’ estimates of 410K.  That is not a good indicator for the economy.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us

Street Address:

301 Main Street

Baton Rouge, LA 70802

Mailing Address:

P.O. Box 44154 Capitol Station

Baton Rouge, LA 70804-4154

Physical Location:

One American Place, 7th Floor

Corner of North Street & 4th Street

Exit 1D I-110 North Street / Capitol Park / Downtown

 

Buffet and Welch on Stuff

Okay, Warren Buffet and Jack Welch are talking on CNBC.  Here is what I have gleamed from their conversation:

 

1.       The death of Osama Ben Laden will offer a temporary euphoria to the U.S. economy, and a boost to Obama’s popularity

2.       The increase in the price of gas sucked over $100 Billion out of the U.S. economy in the first 3 months of this year

3.       Changing the tax benefits oil companies get for drilling at this point would increase the cost of  oil and gas at  the pump

4.       In order to lower our dependence on foreign oil we need innovation like Jobs and Gates brought to computers

5.       The economy and employment are not likely to boom unless home construction recovers fully

 

The $100 billion dollars really caught my attention.  That’s $100 billion dollars consumers and companies spent on the increased price of gasoline that they didn’t spend on goods and services. 

 

I’m no economic guru, but that can’t be a good thing.

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury

Ph:  225-342-0013

Fx:  225-342-9721

Email:  jbroussard@treasusry.state.la.us