Is Inflation Over Sold?

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First, for all you right minded wording detectives out there, you are absolutely right… inflation is not rising prices and deflation is not dropping prices. Also, deflation is not two measures of a heavily manipulated bond market (chart 1) dropping impulsively. But for the sake of argument, let’s realize that Main Street does indeed call $4 regular at the pump “inflation” and every several years when a scare crops up they call dropping stocks and house prices “deflation”.

Here are some pictures of an over sold ‘inflation’ story, which put another way, is an over bought ‘deflation’ story.

TIP vs. TLT (inflation protected vs. regular long-term Treasuries), the indicator that did indeed give us the heads up on a coming implosion of inflation expectations long ago, is burrowing southward in what looks like a Waterfall decline (the opposite of a parabolic blow off ala Silver 2011, at the height of the last inflationary blow out). (more…)

Uncork the Central Bank Bubbly!

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What a glorious global economic gala!  Apparently, contracting world GDP growth, monumental sovereign debt loads, ballooning central bank balance sheets, crashing commodity prices, competitive currency devaluations and synthetically suppressed interest rates, as far as the eye can see, are all great tidings to be joyously celebrated throughout this holiday season.  Well, at least that’s the takeaway according to the whooping wonderful world of capital markets.  Have no fear, all is perfectly in order.  Jamie Dimon, Jim Cramer, Larry Fink and Company all have our back. The rest of us mere mortals are simply supposed to stand aside and take their professional word for it, silently sipping the financial establishment’s spiked eggnog until we attain a sheepish state of stupid stupor.  After all, the money experts at the Fed are on the case, what could possibly go wrong? (more…)

The True Welfare Queens

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(Note from Tim: this is written by a Sloper who stays in touch with me from time to time; someone made a remark about “corporate welfare queens” on the blog recently, which inspired this reader to send me the email below; I have been given permission to make this email into a post:)

Who are the true welfare queens of this country? Suburban elderly or inner city folks?

My position: Inner city folks

Why:

It may well be that the money spent on Social Security and Medicare is much higher than money spent on Food Stamps and Aid to Dependent Children. But what about the money spent on subsidized housing (currently assisting more than 3 million households in the US), much of it in the inner cities? Aid to pay for utilities? Emergency rental assistance/homeless prevention programs? Disability benefits obtained from having ailments due to poor lifestyle choices? Free lunches and winter jackets for their needy kids? Free cell phones with minutes (yes, they get that, too)? And what about all those inner city folks who get all of the above, including Social Security and Medicare? There are a plenty of them. I know. I have seen them with my own two sad little eyes. (more…)

Exceptional Economic Energy Elation

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2014-11-26T192309Z_1_LYNXNPEAAP117_RTROPTP_3_OPEC-OIL_original

The StealthFlation Blog

Tis the season for exceptional economic greetings.  The entire energy complex and base metals are in a ferocious free fall, whilst the juiced stock market apologists and U.S. exceptionalist pompom wavers are out in force emphatically heralding the new found age of unabashed American consumerism which evidently is about to magically materialize. (more…)

Why Tony Robbins Is Asking The Wrong Questions

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First off let me make this statement plain and simple before one reads any further. This is not a hit piece, nor an effort to take swipes at Tony Robbins or worse, some feeble attempt at click-baiting.

I have been a true fan since he first hit the motivational stage decades ago. However, just as I am what many would call an Apple™ “fan-boy” (which I am) it doesn’t stop me from pointing out issues where I see a compelling reason to do so.

As I’ve stated before, I mean it in a manner the same way one would criticize a family member when they are either doing something that doesn’t make sense, or something other. Nothing more, nothing less. (more…)