Smoke Screen

Today we get to witness the Power of the Big Money Elites. Economic numbers are negative but stocks make new highs. It is all a part of trying to exit a Bubble.

Today we see GDP for the 3rd quarter weaker than expected. Inflation higher than expected, plus Canada and England taking a more aggressive stance on inflation with curtailed stimulus and higher rates.

No doubt higher stocks are a reflection of old news, earnings from a time of low inflation.

The key issue now is direction of real rates and an end to stimulus. Later today we will show analysis of the historical relationship of the CRB Commodity inflation index and 10 year rates. We see much higher 10 year rates by next April, probably rates in the 4.5 to 5.5 percent area.