Deflationists, you've lost. Badly.
Early this year, one of the biggest questions an investor had to consider was, "Is the U.S. government's crazed spending going to stoke inflation and higher commodity prices? Or is the consumer so tapped out that he can't buy anything... and is a long slog of deflation on the way?"
We're in the inflation camp... but we always check our theories against the market. It's the judge, jury, and executioner of any idea. As today's chart shows, the deflation argument has met the ax. The government's E-Z-Credit and money-printing scam has clobbered the dollar... and is driving the price of "real stuff" through the roof. It's behind the enormous surge in the price of gold. And it's behind the surge in Dr. Copper.
Last month, we tagged $3.25-per-pound copper as the level we'd need to see to say, "Inflation wins." This week, March copper blasted through that level to reach its highest high since its pre-crash levels in August 2008. "Real stuff" is now shattering price levels as folks flee junk paper dollars the government is handing out like Halloween candy.
Early this year, one of the biggest questions an investor had to consider was, "Is the U.S. government's crazed spending going to stoke inflation and higher commodity prices? Or is the consumer so tapped out that he can't buy anything... and is a long slog of deflation on the way?"
We're in the inflation camp... but we always check our theories against the market. It's the judge, jury, and executioner of any idea. As today's chart shows, the deflation argument has met the ax. The government's E-Z-Credit and money-printing scam has clobbered the dollar... and is driving the price of "real stuff" through the roof. It's behind the enormous surge in the price of gold. And it's behind the surge in Dr. Copper.
Last month, we tagged $3.25-per-pound copper as the level we'd need to see to say, "Inflation wins." This week, March copper blasted through that level to reach its highest high since its pre-crash levels in August 2008. "Real stuff" is now shattering price levels as folks flee junk paper dollars the government is handing out like Halloween candy.
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