Author Topic: January 2014 - USA's Manufacturing Fell 5.7%  (Read 605 times)

Offline JohnyMac

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January 2014 - USA's Manufacturing Fell 5.7%
« on: February 03, 2014, 12:33:38 PM »
Zero Hedge reports that manufacturing in the USofA fell by 5.7% in the month of January. When this stat happens 3 months in a row, typically inflation will soon follow. As you are aware our inflation rate is based mostly on inventory of hard goods not food or petroleum products.

When inventory is high, prices are held low. When inventory is low, prices go up.

Also as loan interest rates go up so do prices (inflation). Add together higher loan interest rates and low inventories, we could see high single or low double digit inflation rates by year end.

Remember, inflation is a "back end" tax on you. Also your retirement.  ;)

Something to think about: If you can buy things you need today. Today's dollars will buy more that in December 2014.  So if you need that new range, boiler,  :tractor:, insert high ticket item here   :)

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