Wednesday, April 2, 2008

More on inflation

There was a lot more John Kosar gave me today that could not be squeezed into a single column. For starters, the Univ of Mich survey has spiked to the upper limits of its range to suggest people are expecting serious inflation - as if gas, food and import prices were news to us today.

The TIPS spread may have calmed down to the bottom of its range but if I am right about gold and the rest of the planet is right about expecting inflation then it can easily spike up to the top of the range and beyond. If that happens and the spread has a technical breakout, do you think the Fed is going to notice? Kosar says yes. I say yes. And talk that the Fed may actually raise rates will not be so outrageous.

C'mon rest of the world - time to pay up and raise your own rates. At least the dollar won't disappear and there will be at lest a drag on rising inflation here.


Anonymous said...

It seems no one is worrying anymore about market going down.
"Bear Stearn scrapping was called for the sake of US well being, therefore justified", "FED is there, any time anywhere", "Bernanke, Dimon, Paulson all in perfect harmony", "It is not to reward reckless speculating, but to prevent disaster of entire economy".
Well, it seems we don't have to worry about anything, with dependable big brothers watching over our interests.
But I do wonder.. If all these mind created perception of wealth from housing is going right back to 5 years ago where it accelerated, just like building stocks did, who restores all the real money spent in the form of commissions, incentives bonuses(Wall st. of course) in billions?
Aren't those a tangible dept???

Michael Kahn said...

I read a blog that called this taxation without representation because the Fed spent our money without any action from the purse-holders in Congress.

King George called. He wants his colonies back.