The World Is Heading For A Deflationary Shock

Inflationists Will Be Shocked By One Detail In Today’s Consumer Confidence Report

Earlier this morning, we learned that the widely followed University of Michigan consumer confidence reading jumped to 83.1, a five-year high.  This was driven by a jump in consumer expectations.However, one of the more interesting sub-components of the report was drop in inflation expectations.

“Inflation expectations fell in both the 1yr and 5yr space, with 1yr expectations falling to 3.1% from [...]

Stealthy QE3

By Scott Silva

Editor, The Gold Speculator

 

Today, there are new reports that the Federal Reserve is planning to inject more cash into the ailing economy though another round of Quantitative Easing (QE3). You have read in these pages before that More QE is on the Way (1-22-13, The Gold Speculator).  The new bond-buying program would be “sanitized” by coincident selling of short-term instruments in an effort to control increased inflation that would result from [...]

John Hussman: A Recession Is Still ‘Very Likely’ — Here’s Why The LEI Is Wrong

by Henry Blodget

A major divergence has developed between various leading economic indicators in recent months.

The LEI, the government’s measure of leading economic indicators has been steadily improving for months, suggesting that the US economy is getting stronger and stronger. The stock market has been rising. December’s jobs numbers were encouraging. Rail shipments have been increasing. And so on.

Meanwhile, the economic forecasting firm ECRI (Economic Cycle Research Institute) has staked its reputation on an unequivocal recession [...]

US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?

From Gold Core

US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?

Gold is trading at USD 1,623.80, EUR 1,177.95, GBP 1,027.01, JPY 124,535.72, AUD 1587.39 and CNY 10,354/oz.

Gold’s London AM fix this morning was USD 1,623.00, GBP 1,027.02 and EUR 1178.14 per ounce.

Yesterday’s AM fix was USD 1,629.00, GBP 1,033.24 and EUR 1,180.17 per ounce.

U.S. M2 Money Supply: Accelerating Sharply in 2011

Gold prices [...]

US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?

US Money Supply Surges Surges 33% in 4 Months – Global Money Supply to Lead to Gold $10,000/oz?

Gold is trading at USD 1,623.80, EUR 1,177.95, GBP 1,027.01, JPY 124,535.72, AUD 1587.39 and CNY 10,354/oz.

Gold’s London AM fix this morning was USD 1,623.00, GBP 1,027.02 and EUR 1178.14 per ounce.

Yesterday’s AM fix was USD 1,629.00, GBP 1,033.24 and EUR 1,180.17 per ounce.

U.S. M2 Money Supply: Accelerating Sharply in 2011

Gold prices are [...]

The ten components of The Conference Board Leading Economic Index® for the U.S. include:

by DarthTater

Average weekly hours, manufacturing
Average weekly initial claims for unemployment insurance
Manufacturers’ new orders, consumer goods and materials
Index of supplier deliveries – vendor performance
Manufacturers’ new orders, non-defense capital goods
Building permits, new private housing units
Stock prices, 500 common stocks
Money supply, M2
Interest rate spread, 10-year Treasury bonds less federal funds
Index of consumer expectations

———–

Anyone see a problem up there?

Kinda like GDP that gets goosed by government spending to show expansion while it HIDES [...]