... and its going to go somewhere unpleasant unless this is stanched.First, the PPI report. It is not the one-month number, although that was bad enough. Less food and energy it was still up 0.4% on the month which is about a 5% run rate annualized (2.5x the Fed's target); the interesting part is that the services index is now relaxing. Demand destruction? Probably.But in the Intermediate Goods table (heh, we never pay attention to that right) you see really bad news. The 12 months change now stands at 11.5% on processed goods and 12.8% for unprocessed and both are up double-digits on a 12-month rolling average in four of the last five months. No that's not all.......(Click link to read more)