By Richard Russell
The Fed continues to deny inflation. Yet their denials are now almost a joke, with nearly every conceivable item in daily use rising in price. Furthermore, with the minimum wage rising across the nation, inflation is now starting to accelerate.
Industrials are again above the critical 18,000 level, with the Nasdaq above 5,000 again and flirting with a record high. Are the averages forecasting an economic boom ahead? The Transports continue to deny the good times. The lowly Transports are telling us that something is very wrong. The action of one average alone (Industrials) cannot forecast things to come. The Transports continue to negate the Industrials' forecasts of good times ahead.
I just received the latest copy of John Williams’ Shadow Government Statistics. The July 17 issue starts:
“New” recession remains in play. A virtual certainty. Though broad recognition of same still may be a couple of months out. Real earnings for all ... Log in or subscribe to continue reading.