My wife completed her Thanksgiving food shopping two days ago. As she busied herself with putting away the groceries, I asked how much she spent. “More than last year,” she said, “even with the ‘discounts.’”
China’s growth is still over 9%. That’s outstanding for every single economy in the world but one. Yes, you guessed it, China’s. So when the numbers came in yesterday that China’s inflation had receded to a more acceptable level, to 5.5% in October from 6.1% in September, it was very good news and not just for the giant Asian country.
If you haven’t deserted the inflation bandwagon yet, do so right now. What we really should be worried about is deflation. Take a look at this scary chart…
President Hoover increased taxes in 1932. It was the decisive blow to an economy that began shrinking in 1930. So why did he do it? To help pay off a burgeoning debt. The parallels to today are obvious.
I keep looking for inflation. Where is it coming from? The price of oil? Wait, oil is down from $115 in May to $80 now.From copper? No, copper is down from over $4.50 in February to $3.43 today.
Food? No again, from $191 in April, the Commodity Food Price Index has dropped to $182. Fact is, in the last few months prices have decreased. Yet, people assume it’s hiding right around the corner, ready to pounce the second they turn their back.
DC’s dirty little secret? The dollar is doomed for another run of devaluation and nobody in DC except for Texas Rep. Ron Paul seems to mind. Who benefits?
You can bet the government is doing one thing to “help” the economy. Devalue the dollar. But it comes with nasty side effects.
About IF | Services | Newsletter Archives | IF Video Room | Contact Us Visit the IF Video Room The Grand Diversification Lie By Charles Delvalle September 1, 2011 An opening word from Andrew Gordon The least controversial investing rule on Wall Street is
