U.S. import prices fell in November as the cost of petroleum and several goods continued to decline, suggesting that cheaper crude oil and a strong dollar will keep imported inflation pressures subdued for a while.
The GDP report was unusually boosted by trade in the third-quarter. Typically, exports add and imports drag from the report. The net contribution from both sides of the ledger was 1.3% and the highest reading since the second-quarter of 2009.
A number of readers and bloggers have recently suggested there must be collusion between America and China over the transfer of physical gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware.