The PPI is out this morning. Down again, by -.2%. What's curious, is that one of the bear ETFs that I follow is up more than 2% in pre-market as I type. Things may well work out differently during the trading day. But curious. Much as the Lunatic Right screams about the Inflation Invasion and Bond Vigilantes, Mr. Market knows that capital gains depends on a modicum of inflation to keep the economic engine purring along. Deflation really is worse than inflation, number for number.
The overarching danger is with the .1%-ers who've accumulated such gazillions of cash. They'd rather have universal, and massive, deflation. We all go Japanese (well, if you'd read Krugman yesterday, you'd know that the Japanese may have come to their senses), and the .1%-ers "earn" returns on their hoardings in a Goldfingeresque manner. Rednecks are generally too stupid to even know they've been played as cat's paws.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment