Friday, May 10, 2013

My favorite indicator


This is a proxy for the gains from specialization, the consumer price index over the producer index. It is reliable and it has been well anchored for some time. Essentially it shows that we are stable, near the bottom, but stable.

What the economy is doing is working the 30 year problem.  When the economy solves that problem we will boom a bit.  What is the 30 year problem?  The almost consistent decline in yields in the dollar economy since 1980.  Economists are still debating the cause and it is a great game of Wodunnit. I also noticed that oil is back up to 96 and I hope we can stay put with this price. We will see.

2 comments:

runescape gold said...

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