Why The Panic In Resource Stocks?

By Paul Nathan:US growth rates of 3% and inflation rates of 4% peaked in the fourth quarter of 2011. Both are running at 2% now and may be moving toward zero or less. Events and policies--or the lack thereof--will determine if growth and inflation actually get that low or not. While there are many ways to interpret today's economy and monetary landscape, there is no denying that we have returned to the recessionary/disinflationary bias of the past. The trends of both growth and inflation are clear. They are falling.

CNBC host Larry Kudlow is a throwback to a 80s supply-side conservatism, which has maintained that any interference in the free market is damaging, and inflation is the primary evil against which the Fed should be on guard. Throughout the economic crisis, he's criticized the lax policies of Bernanke.

Despite what your mom said, you don’t matter that much. In fact, with each passing day, you, me and the rest of the developed-world-dwellers are losing our clout. Today I’ll prove it to you with a few newfound energy statistics – plus, we’ll discuss what you can do about it. As I type, the developing world is gobbling up market share for the world’s resources – oil, natural gas, coal, you name it. It’s the same story, really, but it’s coming true in front of our eyes.

Canada’s annual inflation rate in November fell to a three-year low of 0.8% on a smaller year-over-year increase in gasoline prices and lower prices for cars, Statistics Canada said on Friday. Separately, the Canadian economy grew by just 0.1% in October from September, indicating a very slow start to the fourth quarter amid foreign and domestic economic woes.