Housing Index, NY Empire, Net Foreign Inflows & CPI Lies

The U.S. NAHB housing market index fell by four points to a reading of 50 in April, the lowest level since the recession ended in November 2001, The index was at 67 a year ago.

The New York Fed's measure of manufacturing activity slumped to 15.81 in April from a downwardly revised 29.03 in March and far short of economists' median forecast of 24.50.

The prices paid component held relatively steady, slipping to 37.90 from 39.32 in March.

Net foreign capital inflows into the United States increased to $86.9 billion in February, the largest net purchases since November.

All told, foreigners bought $21.9 billion in Treasurys, $30.5 billion of corporate bonds, $16.5 billion of corporate equities and $30.6 billion of agency bonds.

The bulk of buying came from the private sector, with $83.8 billion purchased, up from $59.4 billion in January. In fact, the difference between private and central bank bond purchases YOY is a real eye opener.

Inside the number, YOY private bond purchases are up to $252B vs $182B in 04. Whereas YOY official "foreign central bank" bond purchases are down to $59B vs $175B in 04.
Full TIC Report.

Regarding the CPI lie,
John Wasik at Bloomberg says "The government has a vested interest in keeping official inflation measures low.

Everything from Social Security cost-of- living increases to marginal tax rates is adjusted annually to this all-important gauge.

The total cost of what we are paying for big-ticket items is much higher than what's reflected in the CPI.

What the government is loath to admit is that you are constantly losing money in your portfolio due to inflation -- if you aren't hedged against it.

Then again (if you diversify), you won't be misled and financially crippled by the government's cost-of-living mythology.
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You won't get any argument outta me. This is the central bankers main methodology of robbing people blind while they are asleep at the wheel... debauchery of the currency.

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