7/27/2011 Portland, Oregon – Pop in your mints…
We are back from the corn fields and rest assured that despite the flooding on the Missouri, the corn and soy harvests look promising.
Much to our surprise, the US Congress has not yet resolved its debt cieling standoff. We have nothing to add other than this is either insanity in action or a blatant attempt to force money out of Treasuries and spark hyperinflation. Given June’s negative CPI reading (which no thinking person should take seriously), we are beginning to think the latter is true.
We offer today’s Key Indicators for your perusal and enjoyment.
Stay tuned and Trust Jesus.
Key Indicators for July 27, 2011
Copper Price per Lb: $4.41
Oil Price per Barrel: $97.23
Corn Price per Bushel: $6.91
10 Yr US Treasury Bond: 2.98%
FED Target Rate: 0.06% JAPAN HERE WE COME!
Gold Price Per Ounce: $1,614 PERMANENT UNCERTAINTY
MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.2%
Inflation Rate (CPI): -0.2%!!! PULL OUT THE HELICOPTERS!!!
Dow Jones Industrial Average: 12,302 TO THE MOON!!!
M1 Monetary Base: $1,944,400,000,000 RED ALERT!!!
M2 Monetary Base: $9,092,700,000,000 YIKES!!!!!!!
*See the MINT Perceived target Rate Chart. This rate is the FED Target rate with a 39 month lag, representing the time it takes for the FED Target rate changes to affect the real economy. This is a 39 months head start that the FED member banks have on the rest of us on using the new money that is created.