look to the USDollar as best indicator now, dangerous CPI
clownbuck now establishing new lows
lower than the past few days, like 94.5
quotes.ino.com
"stocks are dumb money, bonds are smarter money, currencies are smartest money, but GOLD is brilliant money" -- JW
FOREX traders sense deflation as a clear & present threat
actually, the CPI measures the product side of the economic price equation rather well, ignoring the rising costs of insurance, taxes, services, tuition, water, movies, lawn care, etc
we have both price inflation in the commodity arena
and price deflation in the product arena
so a -1.3% CPI is a scary number
we really need another CPI for the rising parts
on CNBC this morning, Maria "Sophia Loren" Bartilomo correctly echoed concerns that money market funds dont keep pace with inflation, offering negative real returns
but she missed the natural historical corollary
WHEN SHORTERM RATES OFFER NEGATIVE REAL RETURNS, GO TO GOLD !!!
we have now a stealth rally underway in gold, and esp silver
/ jim |
