Commodity Trade Mantra

Posts Tagged ‘Producer Price Index’

The Fed's Measure of Inflation is Furthest from American Reality

Ben Bernanke first set an official inflation target in January 2012, aiming at 2%. Has it been achieved? Well, it depends on how you measure inflation. There are many to choose from. The Fed has chosen the one that is most suppressed and furthest from the experience of most American households. So the Fed can pretend that inflation is “too low,” whatever that means.

Gold Prices and the Gibson’s Paradox Implications

The flight of speculative capital from falling markets has to go somewhere, particularly if cash balances held in the banks are at a growing risk from systemic default. The Gibson’s Paradox tells us that these are the conditions for commodities to become the safe haven of choice for the highest levels of speculative money ever recorded since fiat currencies dispensed with the gold standard.

The Fed Sees No Bubbles, No Inflation, No Problems!

Even if you believe the highly manipulated government CPI data, April’s YoY inflation rate came in at 1.95%. If annualized, April’s monthly change would equate to a rate closer to 4%. Yet, the Federal Reserve policymakers made clear that they see little chance of inflation moving past their 2% target for years to come.

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