Sunday, May 17, 2009

Beginning Of Inflation?


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This is a chart of the CRB Commodities Futures Index. After a huge deflationary drop in commodities prices the second half of 2008, commodities prices are turning up pointing to higher comsumer prices later this year. We are already seeing gasoline prices rising with price of oil. Couple the rise in commodity prices with rising yields in long-term U.S. Treasury bonds and the decline in the dollar and you have the telltale signs of inflation in the future.-Lou

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