Why The Panic In Resource Stocks?
By Paul Nathan:Larry Kudlow, after telling viewers during his Wednesday night Kudlow Reports that he is concerned about a stronger dollar and falling gold, asked (to his credit) the definitive question, "Is this a whiff of deflation?" He should be concerned. For several months now, while Kudlow and many others have been busy arguing that Bernanke and the Fed have been causing a lower dollar and higher inflation, the demand for dollars around the world has actually been growing so strong that money is becoming tight and commodity prices are dropping. All led by falling gold. Despite a strong U.S. GDP in the fourth quarter, gold has been falling since last summer. In my recent article, The Return of the Recession /Disinflation Bias, I argue that falling commodities and resource stocks have been indicating for months that world growth is slowing and that disinflation is taking hold. The world is now movingComplete Story »