Friday, March 11, 2005


CRB P&F Chart

Here's what Larry Kudlow and The Fed say is inflation under control. It is a Point and Figure chart. It concentrates the activity showing mainly price and covers a period from 2001 to the present. You can read that the initial objective is 380, tommorow it will read 392.

Do you know where Gold was the last time the CRB was at these levels?
---------------------------CRB--------Spot Gold

(Statistics courtesy of Dan Norcini)

Here's a picture of the USD over almost the same time period.

Some say that inflation is the cruelest tax. "What do I care if the USD goes down", you say. Suppose in 2001, you planned on buying an imported car. The USD was 1.20 to the Euro and the new BMW was $20,000 $22,500. You decided the time wasn't right and now it is, in 2005. But now the USD is .8 to the Euro and the same car is now $30,000. Since the government causes inflation by printing money without anything to back it, they just picked your pocket for $10,000 $7,500, even though they lowered your taxes. They devalued your currency by 33% and you didn't even know it.

Mover Mike

This page is powered by Blogger. Isn't yours?

Who Links Here
WWW Mover Mike