I know some of the tin foil hatters are going to claim this is false reporting, but the economy IS growing in certain areas; notably manufacturing. NFTRH has been following US multi national manufacturer (and personal customer of mine) Parker for several weeks now. You recall the report I gave about corporate PH's economic view several weeks ago, here on the blog?
The problem is not the productive economy (less economic legacy waste); the problem is the policy that has created the rebound, the inflationary price pressures that attend it, and the box policy makers now find themselves in. Will an unnaturally created economy continue to prosper absent panic policy and by organic means? I think not.
But this does illustrate that in the age of inflation onDemand, net bearish is a tough way to go through life.
http://www.biiwii.blogspot.com
http://www.biiwii.com
PS: I have now removed the embarrassing trade that was long IEF and TLT. Owning those instruments caused me to try to out think economic micro managers. Hello Mr. Gross, my name is Gary and I used you as a contrary indicator. Now I may be one too, but I am not going to put my hard earned funds in the hands of chronic inflators. We'll talk about where cash might be deployed in the event of rising interest rates in #130.
