Friday, May 11, 2012

The PPI today...

showing DEFLATION.  How can this be, dear readers?  With all the King's men deploying QE so liberally? 

Once again, I remind you that the monetary channel is BROKEN at this point and no amount of asset swaps will cause inflationary pressure.  Coupled with all this deficit-hawk talk out of D.C. and it will take much longer for inflationary pressures to emerge.

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