MSM WILL NOW LIE ABOUT IRAQ OIL PRODUCTION

Markets: it is important to note that the slide of gold (currently below $610 from a high above $720) is almost in lockstep with the oil slide (currently under $69). The main source of domestic inflation right now is oil and the resulting price of gasoline. In the next few weeks we could see gasoline prices slide under $3 per gallon across the country, a help to the economy. Because the MSM won't report it, we haven't been paying attention to the fact that Iraq oil production is back over 2mbpd and climbing. Reuters is only reporting a decline from the northern fields as "news," obviously hoping the terrorists will destroy the industry. The WaPo doesn't report totals at all under their banner headline of Iraq oil production. Crude price for June spiked under $69 earlier today.

Real inflation concern should focus on other commodity prices. We have a huge shortage of corn in storage, lowest since 1976, and feed corn makes the meat market. Once gold disconnects from oil we will see how bad the inflation scare really is. The stock market isn't in free fall over gasoline prices alone.