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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: John Vosilla who wrote (26722)2/18/2005 3:19:38 PM
From: Jim Willie CB  Read Replies (2) of 110194
 
agree except for CPI claim, it was PPI today
next week is CPI released
huge difference
dont expect CPI to match the PPI jump
which means shrinking corporate profit margins
and means struggling household discretionary budgets

yes, negative real rates are deeper negative than reported
but that traditional pro-gold signal is more obscure now
so lots of cheap money out there
where does it go? ASSETS, not business expansion and jobs

I still see separation of oil and gold
the higher oil prices go, the more chance of recession
since costs CANNOT be passed on
instead, businesses shut down, lay off workers, or go to Asia

/ jim
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