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Might our Inflation-Deflation Watch be suggesting a breakout in asset price inflation is about to take place?
Could it, in fact, be presaging the start of John William’s hyper inflationary depression in which prices rise exponentially even in light of massive unemployment and bankruptcies? This article analyzes the situation.
The above introductory comments are edited excerpts from an article*
The following article is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Taylor goes on to say in further edited excerpts:
Inflation-Deflation Watch
As you can see from the chart below, our Inflation-Deflation Watch (IDW) has risen slightly above the downtrend line from its April 28, 2011 high of 159.51. This week it closed at 159.34, but in fact it briefly hit a new high on June 20th when it surpassed the old high by a whisker, closing at 159.53.
Might our IDW be suggesting a breakout in asset price inflation is about to take place? Could it in fact be presaging the start of John William’s hyperinflationary depression in which prices rise exponentially even in light of massive unemployment and bankruptcies?
One point worth noting is that commodities…have been showing price strength of late. Copper has suddenly shown new life, especially over the last couple of weeks. It closed at $3.16 this week and is up 7.6% since its March low. Oil is up by 6.8% since its March lows and the Rogers Fund is up 9.2% since its January lows.
Prospects for Future Inflation
If we are on the precipice of a serious inflation problem, we should start to see:
- a major decline in the dollar index and
- materials prices start to take off.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://jaytaylormedia.com/are-we-approaching-an-inflation-tipping-point/ (2014 Copyright © Jay Taylor Media )
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