Ok, so now that the entire world seems to think we’re about to be engulfed in a deflationary spiral, I’d like to call for a moment of silence.
May deflation rest in peace….and may the new monster be birthed: Inflation.
I suspect within 12 months of this note we will be told a few new things that will be utterly earth-shattering, perhaps even ending life as we know it:
- Commodities will slowly bottom as supply balances with demand (painfully for many)
oil will find its new price per barrel equilibrium somewhere between the high $20’s and mid-to high $40’s.
- Once oil’s price plummet is controlled, we will see that it has hidden a healthy amount of inflation in other areas of the economy (don’t worry – it’s ok).
- We will be told that the new “creeping inflation” will be a value killer – it will consume us – it will destroy the dollar and all asset values you own.
- Oh, and when we do see crude oil rally a bit to find that new equilibrium noted above, we’ll be told – unequivocally – that the rise at the pump will destroy the consumers’ appetite to shop, and will “crimp the consumers ability to support the retail sales growth required to keep this tepid recovery going.”
When you hear the above, please, please remember that for the last 18 months we have been told nearly the opposite – and that was supposed to be bad as well.
Read this – for the full picture and to find out about In Search of Apocalypse Next.
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