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.
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