The word of the day is obviously “deflation.”
The dollar is rallying, markets are tanking, and crude oil has fallen below $70.
This is obviously great vindication for the likes of Gluskin-Sheff’s David Rosenberg, who has been a deflationista from the beginning.
In today’s note, he offers 11 points of evidence that that deflation is the primary trend.
Credit is contracting
Image: Wikimedia
Wage rates are stagnating
Money supply growth is vanishing
Image: Planet Of The Nerds
The U.S. dollar is strong
Image: Won Park
Commodities have peaked
Image: BPProductions.com
U.S. home prices are rolling over … again
Lumber prices tumbling (down nearly 17% from April 2010 highs)
Wal-Mart is cutting prices on 10,000 items
Image: Wikimedia
Home Depot just cut prices on flowers, fertilizers, lawn equipment and outdoor furniture
Image: Wikimedia
Taco Bell is offering two dollar combo meals
Image: Wikimedia
The April U.S. retail sales report hinted at deflation in groceries, electronics, apparel and sporting goods
Image: Wikimedia
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