Inflation is in the Rear View Mirror

The Daily Reckoning used the word hyper-inflation yesterday. They’re not alone.
The headlines everywhere are touting…

Inflation!
Stagflation!
High CPI!
High PPI!

Ignore them.

Headlines are misleading. Dig beneath the surface. The other day I was interviewed by the Pittsburgh Post-Gazette. The reporter was astounded with my dialogue about DEFLATION. When the article hit, I was the only one quoted in the article regarding deflating home prices, oil prices tumbling, wage growth barely creeping ahead, a recession and credit crunch that would ultimately deal a blow to high prices. Don’t get caught up in the hype.

Click here for a snapshot from a writer who reviewed the recent headlines regarding inflation. This guy is on top of it!

Those bashing the Fed for not raising interest rates will be forced to ‘about face’ in 6 or 12 months. They will eat crow. The economy is changing rapidly and you shouldn’t get caught looking in the rear view mirror. I am told Cramer used this analogy yesterday: “The recent CPI and PPI data is like watching a ten car pile up in your rear view mirror.”

Don’t get fooled. Inflation is in the rear view mirror…or is it the side view mirror?

Good Luck.