Tag Archives: disinflation

At the end of last year virtually every every single economist expected interest rates to rise this year as the Fed tapered their purchases and the economy improved but, in fact, interest rates on the 10 year U.S. Treasury have been going down year to date (from 3% to 2.5% after rising from about 1.6% to 3% last year). The masses, going along with this crowd, got fooled but we have been calling for a decline in interest rates for some time now due to world-wide deflation and it couldn’t be clearer to us that this is the most likely scenario for the United States. Let us explain.

Higher (lower) inflation expectations have remained closely bound with higher (lower) stock prices [of late but] this odd connection won't last forever...[but] until that changes, it's best to go with the flow....[This article explains] the new abnormal. Words: 266

Whenever the BLS posts their monthly CPI there's always the same response from critics that the index is flawed. That's fine. I think a healthy dose of skepticism regarding government data is perfectly good. So let's take a look at some independent gauges to see where prices are.