Mish, deflation.
There is one index that should show deflation.
The Silver/USB Index
High was March 2008 at 0.18
We then worked our way down into April and have been stuck in a sideways wedge since then.
Yesterday we hit 0.15
If you are correct on deflation, at some point this chart should begin to breakdown.
Remember this index was below .04 in 2003, then the FED decided to really destroy America, why do you think they quit publishing M3, it shows why in this chart!
2003 below .04 to today above .15 (.18 in March), now remember this chart from 1991 to 2003 traded in a range of .03 to .06!!!!!!!!!!!!!!
One of your readers said it best, we are in the worst situation.
Declining values in key assets, housing, stocks, income.
Ramping values in commodities (both hard and softs), energy rampage (oil, nattie gas, coal).
And a FED that is powerless to stop either! Me thinks we will continue to see ramping values and inflation in commodities, unless this chart breaks down. This chart will not breakdown, unless the FED stops printing and reins in money supply!
West |
