Time For The Black Helicopters

The continuing fall in inflation betrays the true state of the economy. Today’s release showed the PCE price index year-over-year  rate at 0.74%,  declining from last month’s adjusted 0.95% (previously 0.92%). The core PCE index of 1.11% was also lower than last month’s adjusted 1.22% (previously 1.19%). The Q3 GDP price index released yesterday showed a 1.27% year-over-year  rate, down from Q2’s 1.35%.

The electronic printing press is not generating the promised inflation. The economy is now a relative hair away from outright deflation. Treasuries, anyone?

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