Inflation? Check the trends.

Those of you who follow this blog and my The Peter Dag Portfolio know that I doubt inflation is on the horizon.

Large government deficits are deflationary because they impoverish countries by reducing the purchasing power of their citizens.

The trend of the CRB confirms my view. Commodities are sinking (click on the graph to enlarge it). It is very difficult to experience inflation when commodities are sagging.

I will change my view when commodities move higher accompanied by a strong economy. Right now this is not what I see.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

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