| Subject: | Re: Core CPI Inflation Rate… |
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| Date: | Wed, 19 May 2010 14:56:12 -0700 |
Three more months to go and we should have 2-Year Headline CPI rate (Jul'08-Jul'10) that is negative. It could happen in two months but that would be cutting too close. I recall some born-and-bred American dopes telling us that the USD would be a tissue-paper currency. It is the intellectual dishonesty of these people that bothers me. They never acknowledge that they don't understand certain aspects of the US economy and policies. Messers Faber, Rogers and Schiff are a bunch of morons with zero understanding of the monetary policy and debt issuance in the US. Even when the federal govt is running massive deficits and the Fed balance sheet ballooned nowhere in the process "Printing Money" takes place. Swapping one form of debt with another and lending money to banks in the process does nothing to increase demand for goods and services until that money is loaned for consumption purposes, which could be inflationary. Housing ATMs were inflationary but they have been practically shut down.
Inflating is going to be lot harder than people imagine. Bond vigilantes are powerful and vigilant. I am one of them! Scam Lovers are powerless sissies. These addicts still can't kick the habit. Before the Scam Market, stocks were one of the best inflation hedges. USTs are great deflation hedge. Get ready for headlines like Lowest Inflation In 50 Years, or Lowest Inflation In 60 Years. As soon as the relapse of the US economy is confirmed the 10-Year yield would head towards 2% and then break that barrier.
Jas
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