Howard and Matt have a post coming out later today that You Tube’s the Fed Chief’s views on US Consumer Price Inflation. As a teaser, here’s a chart of He Who Sees No Bubbles (Bernanke) vision impairment.
Note that in 2006 (when this chart bottomed) neither Bernanke or Greenspan could foresee the mountain of Producer Price pressure that were on the horizon. I suppose it’s hard to see the easy money price bubbles that those engulfed by their own predetermined Doctrines create.
Buyer of Perceived Wisdom that the Fed won’t have to raise rates in 2010 beware. At this stage of the game, the data doesn’t lie – people do. Ben Bernanke is going to be playing some political football with a +2.7% year-over-year PPI report.
The US Dollar and bond yields are now breaking out to the upside on both an immediate term TRADE and an intermediate term TREND basis.
We remain short the SHY (short term Treasuries).
Keith R. McCullough
Chief Executive Officer