Starting in 1990, Cass Information Systems has calculated a monthly broad-based freight index for North America shipping activity based on the freight transactions it processes for 350 large shippers in a wide variety of industries, and the index is widely used by industry analysts and economists as an accurate barometer of North American shipping and economic trends.
The index was recently updated for September, and the Cass Freight Index was close to a four-year high, with more September shipments in any single month since November 2007, the month before the recession started and right before the freight index plunged to the lowest level in its 20-year history.
Bottom line: Fed chairman Bernanke is allowing the money supply to climb like a mad man and this is resulting in a manipulated boom that is currently fooling theory-less econometric trend followers. They'll catch on in another couple of months. But, it won't be until early next year that they realize how serious the price inflation is going to get that is accompanying the phony boom.
(ViaMarkPerry)
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