Friday, December 3, 2010

ISM Services Index Climbs in November to 55%

Welcome to Ben Bernanke's manipulated economy.

The ISM on Friday said its non-manufacturing index rose to 55% from 54.3% in October. Readings above 50% indicate that more companies are expanding than contracting.

The economy is clearly "turning around" in the sense that Bernanke's money printing is impacting the sectors of the economy that are measured by many indexes, such as the ISM. However, because this "turn around" is a manipulated one, and given that the demand to hold cash is dropping like a rock, I fully expect the price inflation to be significant. It will be obvious to everyone within six months.

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