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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?


To: abuelita who wrote (19186)5/16/2003 9:32:13 AM
From: Jim Willie CB  Read Replies (1) | Respond to of 89467
 
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