Dennis Gartman says the recession has reached has hit its bottom.
“From here on out the data is going to get better,” Gartman told Bloomberg.
“Now, it’s not going to get dramatically better, but the worst is clearly behind us.”
In agriculture, conditions “have been unbelievably good,” Gartman says.
“The soybean crop looks fantastic. The corn crop is as high as an elephant’s eye,” Gartman notes.
“Prices may be low, but the farm community is going to be talking to itself saying what a year this has been.”
“If corn prices are down 20 percent, 30 percent from last year, but you’re getting 40 percent more crop out of the ground, you’re doing pretty well, thank you very much,” he pointed out.
Worrying about inflation caused by rising food prices is probably ill-advised, Gartman says, noting that the consumer price index declined 1.4 percent in May — the largest drop since January 1950.
Economist Gary Becker worries that Federal Reserve Chairman Ben Bernanke may not raise interest rates quickly enough to contain inflation, Bloomberg also reports.
Becker notes that Bernanke can sell Treasury bonds instead of purchasing them and reverse the central bank’s emergency programs that expand credit.
“Will he do that if that has a risk of slowing down the recovery?” Becker asks.
“He’ll be under political pressure not to do so, so that’s a big uncertainty.”
“I think he’ll do something, surely to try and control that, but I’m not sure he’ll have the will to do it sharply enough.”
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