| Subject: | FWC: DEFLATION THE PRIMARY TREND by David Rosenberg |
|---|---|
| Date: | Tue, 18 May 2010 06:54:43 -0700 |
David Rosenberg; 05/17/10:
DEFLATION THE PRIMARY TREND
Credit is contracting.
Wage rates are stagnating.
Money supply growth is vanishing
The U.S. dollar is strong.
Commodities have peaked.
U.S. home prices are rolling over … again.
Lumber prices tumbling (down nearly 17% from April 2010 highs)
Wal-Mart is cutting prices on 10,000 items.
Home Depot just cut prices on flowers, fertilizers, lawn equipment and outdoor furniture.
Taco Bell is offering two dollar combo meals.
The April U.S. retail sales report hinted at deflation in groceries, electronics, apparel and sporting goods.
Given all these, the U.S. bond market looks poised to outperform. Nuff said.
All the while, the list of morons who have are predicting higher inflation and 6% and higher rate on 10-year Note (the leveraged global financial system would collapse before this rate is reached!) keeps growing. Marc Faber has been on this list for years and so is Jim "Mouth from the South" Rogers. There is no "Printing of Money" going on in the US. The current growth in the public debt is highly deflationary for the future! Learn from the Greeks. The household debt is already contracting. It is the debt, stupid!
Jas
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The Great Depression Ahead: How to Prosper in the Debt Crisis of 2010 - 2012 by Harry S. Dent
Crisis Economics: A Crash Course in the Future of Finance by Nouriel Roubini
The Black Swan: The Impact of the Highly Improbable by Nassim Nicholas Taleb
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