The producer price index inched up today, led by food and energy. Looking at the long term chart, could we be hitting the ceiling on producer prices where the economy rolls over and dies? This set up looks ominously like 2008 except that oil is currently much lower than in 2008.
I am not saying prices will necessarily fall. The Fed has been very diligent about keeping the dollar going down and prices going up, but the economy may only be able to absorb price increases at a certain rate before tipping back into recession.
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