The prospect of QE is sending the CRB index to a new two year high today. Kimberly Clark is down nearly 6% today as they faced higher input costs. Many other corporations are singing the same tune such as Mcdonalds, General Mills, Starbucks, Goodyear Tire and many retailers.
The government claims that there is no inflation but most non-government statistics say otherwise. A basket of 31 items from Wal Mart are are up 5% from the beginning of the year. The ISM, which is not a government entity shows the prices component rising rapidly. Who do you trust?
The poor and middle class are getting squeezed with higher prices while the rich benefit from asset inflation. This does not make for a healthy society.