Authored by Christoph Gisiger via Finanz Und Wirtshcaft,
Fred Hickey, editor of the influential investment newsletter «The High-Tech Strategist», warns of trouble ahead for the stock market and spots bright opportunities in the gold sector.
When it comes to inflation in the US, there are generally two schools of thought:one is that inflation is woefully - and purposefully for political means - mismeasured, and that the real inflation is orders of magnitude higher than what the BLS, with its endless array of hedonic adjustments, reports. We discussed this view in May when we presented a presentation by Devonshire Research, which showed that "contrarian" CPI is closer to 8%, not the "post-modern" accepted rate of roughly 3%.
There’s a strange thing about Central Bankers…
When they are working at a Central Bank, they never see financial problems, even if said problems are both MASSIVE and obvious.
As Fed Chair in 1999, Alan Greenspan claimed it was impossible to know if stocks were in a bubble … when stocks were in their single largest bubble in 100 years.
The next year, the market crashed.
As Fed Chair in 2007, Ben Bernanke claimed the subprime mortgage meltdown was “contained” and the effects would not “spillover” into the economy.
With the traditional post-payrolls market lull setting in, and most trading desks taking a week or two off, it will be a relatively quiet week with attention turning to inflation data with releases in the US, China, Norway & Switzerland, a key factor as central banks consider if/when to tighten in the near future. The US print will gain most attention: a strong number will validate the Fed's balance sheet unwind intentions and a potential December rate hike.
Authored by David Stockman via The Daily Reckoning,
Here’s a comparison that is surely vertigo inducing.