*** The Consumer Price Index fell 0.6% from October, the biggest drop since 1949. Many attribute this to a massive drop in energy costs, so this should be great news for consumers...right? Well, our friend at EverBank, Chuck Butler, is singing a different tune:

“Here's the skinny: yesterday, the government reported that CPI fell -0.60% in November. Now how's that for a fantasy?” Chuck said.

“Anyway, I'm not going to spend the whole morning ranting over this bogus report, but based on this report, one would think that the Fed is going to pause, right? Well, not so fast! I think foreign investors are the only ones swayed by this report, judging from the Net Foreign Security Purchases (NFSP) data from October. Yes, that report said that NFPS was $106.8 billion in October. So, apparently, they believe there's no inflation in our economy, for if they did, who would be buying to the tune of $106.8 billion worth of dollar-denominated assets?”

Bill Bonner is the President of Agora Publishing.  For more on Bill Bonner, visit The Daily Reckoning.