The asinine debate between inflation and deflation continues. Disinformers can always point to some profit cartel that retains pricing power such as the University cartel or the MedeCine Cartel. What inflationists never admit is that in a world of falling wages, if something is going up in price, then pretty much everything else must be going down. Suffice to say the gasoline "tax cut" went straight into debt repayment and tuition, bypassing the rest of the economy. In short, deflation is an ever growing output gap. It's too much junk chasing too few dollars.
THIS IS WHY WAGES ARE NOT GOING UP:
The U.S. output gap is an asinine 22%:
You can't see it on this weekly chart, but on the dailies, oil just briefly touched 2009 - see next chart...
The U.S. output gap is an asinine 22%:
Nowhere is deflationary pricing more evident than in the oil industry collapsing under the weight of its own supply glut - Now manipulating the futures market on 20x leverage to pretend that the price is going higher, when it's just the cost of storage that's soaring, as they run out of places to put the stuff...
You can't see it on this weekly chart, but on the dailies, oil just briefly touched 2009 - see next chart...
The U.S. deflation rate (TIP/Treasury) ratio (red) is 100% correlated to oil, meaning they are both tied to global deflation aka. "lack of demand" aka. "imbalance":
And we just found out that the inventory/sales ratio hit new all time asinine levels...
ZH: March 9, 2016
Speaking of cartels, Biotech, Pharma, and Healthcare - the leading sectors from 2009 until last year, are now getting shellacked relentlessly by threats of price controls by Democrats...
Well at least retailers had a good fake bounce
Well at least retailers had a good fake bounce
Look out below visualized...
Walmart:
