I will be swinging by Dylan’s place this afternoon about 4:15pm to discuss the Fed, the dollar and inflation.
A few bullet points:
• Inflation is elevated, but its far below where it was from 2001-08. Inflation was huge prior to the 2008 collapse. Today, it has the potnetial to rear its head, but it is more subdued for a variety of reasons.
• The Dollar has been pressured, but far less so than pre-collapse: Inflation is elevated, but its far below where it was from 2001-08. The Dollar is soft, but its been mostly range bound; It collapsed 41% from 2001-08 Why has “Stimulus” become a dirty word?
• Oil is pricey — but Nat Gas and Coal have not kept up. Maybe its more than just the Fed — what about Mid-Eastern politics and 3 hot wars?
• Food prices are also a story of supply problems droughts, flooding, reduced exports, supply issues, and increased demand for protein from Asia for Pork and Beef.
• Asset Prices continue to rise: The NASDAQ breaks its Oct. ’07 high — why is the Fed targetting asset prices?
Coal versus Oil vs Nat Gas
Why has Oil run so far ahead of Coal or Nat Gas in Price?
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