DEFLATION

Deflation #Winning !

(Sorry couldn't resist the Charlie Sheen reference.  Now, he would be the perfect official spokesman of the Idiocracy).

As you know, I like charts a lot, because they are objective, and therefore preclude me from for example having to watch CNBC with the sound turned on, and other excruciating experiences.  In my last post, I mentioned some key divergences in the markets that bear watching closely.  As always, I am looking for data points that either confirm or refute the deflationary crash thesis.  Right now, stocks are pointing strongly toward a reflation of the economy.  However, more than any other market, the stock market is the key (short-term) barometer of social mood, therefore it's volatile, emotional and prone to manipulation.  Other markets are less speculative and therefore can serve as reliable indicators of what is really going on in the economy.