It was another no-bid day for the credibility of the US Dollar yesterday. The supreme Janet Yellen regime is transitioning away from being data dependent on inflation and employment and shifting towards price fixing – or rate targeting.
Down Dollar and Down Rates? That simply means slowing real growth and rising Gold prices. Gold is up +10% year-to-date.
Oil joined the inflation party yesterday, ratcheting the CRB Commodities Index up another +1.8% to +6.8% year-to-date. Compare that to Consumer stocks which are down -3.5%.
Nat Gas? It is going completely kaboom...up a blistering +37% year-to-date.
That has to be “deflationary” right? Right? $110 Oil too. It just has to be. The government says so.