sickofthehype

ETF Trends: Dollar Slope Remains Downwards

And Goldman Suchs black box software is again at work this morning.

Shocker....

Consumers Buy Into Disinflation

After the short blip of inflation taking off there will be inflationary pressures on employers as well. Raw materials, supplies, etc, will all go up in price, forcing businesses to charge more.

Perhaps there will be more of a distance between businesses that sell products versus service oriented businesses.

Anyhow - wage pressure will build once inflation takes off, but regardless the mid 1970's will be eerily familiar.

Carter, an unknown Democrat promoting CHANGE, was elected into office and an inflationary campaign was created. Then 4 years later we needed 21% prime rate to halt the measures in motion. Then a recession in the early 80's occured. We could be in for a similar pattern.

Consumers Buy Into Disinflation

Check out the chart that 70's stagflation survivor linked -

The most interesting thing is how quickly ANY deflation of the past was immediately reverted to INflation - within a very short amount of time.

It's not a matter of IF but WHEN inflation will hit. Any possible DEflation is temporary, and obviously the gov't's inflationary campaign is designed to make debt worthless and prop up real estate. It will work in time, but the key is in putting on the brakes once it's in motion.