- Bloomberg’s Commodity Index Drops To Lowest Since 2009: What Does It Mean? (ZeroHedge, Dec 22, 2014):
Moments ago we learned that for all talk of a commodity “bottom”, the “energetic” dead cat has resumed its inverse bounce. To wit:
- BLOOMBERG COMMODITY INDEX EXTENDS DROP TO LOWEST SINCE 2009
So what does that mean? The answer: it all depends on whose narrative one chooses to believe and/or which narrative the US Ministry of truth is promoting on any given day in order to boost confidence.
The main plotline now is simple: plunging commodity prices (just don’t call them deflation, “negative inflation” is much better) are a huge tax cut on the US consumer the pundits will have you know. And why not: so simple a Jonahtan Gruber could have come up with it.
The only problem is that you learn all this from the same pundits who told you just a few months ago, that soaring commodity prices are great for the economy, for jobs, and, drumroll, for the consumer. Continue reading »