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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Nathan who wrote (57490)1/12/2001 11:04:43 AM
From: pater tenebrarum  Read Replies (6) of 436258
 
i haven't looked at the details yet, but core PPI came in 200% higher than expected, at 0,3%. considering the government lies about this and understates inflation by at least 50%, we're looking at REAL annualized producer price inflation of over 7%. thus the sell-off in the bond market, as the currency debauchery that's now in full swing means the real interest rate on bonds is probably deeply negative by now.
of course bond holders have not realized that yet, as no-one disputes the government data aside from a few critics like Dr. Richebacher and Jim Grant. the fact that the government has created a statistical mirage, and an error that actually compounds over time, is not discussed by mainstream economists and the media. in Pravda like fashion they have been instructed to suppress all debate over this imo. (otherwise there WOULD be a debate).
however, this means that the economic imbalances are even worse than they appear. the Greenspan Fed is destroying the currency, essentially buggering savers in favor of speculators and debtors. note that one day the disconnect between the official data and reality will become so obvious that confidence will be destroyed in an instant. this is why everybody should hold a portion of his/her assets in gold, in spite of the fact that in order to support the above mentioned statistical mirage, gold is being suppressed by the CB's and bullion banks. it means you won't see a return until their scheme finally collapses, but collapse it will. what is currently happening is basically a refined version of John Law's Mississippi bubble fiat experiment. and it will end in similarly spectacular fashion.

retail sales came in better then expected, so both reports took a bit of wind out of the sails of the 'more rate cuts are coming' scenario. the Fed Funds futures contract previously predicted a 100% chance of another 50bp. easing at the FOMC meeting in late January...this has now declined to a 50% chance.
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