Good news this morning, giving the bulls some legs.

"Inflation pressures eased a bit in April despite the biggest jump in food prices in 18 years. The Labor Department reported Wednesday that consumer prices edged up 0.2% last month, compared to a 0.3% rise in March.

Food crisis will be the biggest crisis of the 21st century. It will push up food prices and spreading hunger and poverty. Surging food prices will create inflation and create more crisis to the world.

The FOMC lowered the Fed Funds rate yet again today, but the longer term consequences could be worse than any potential benefit.

It is hard to continuously say the same thing over and over but it is true. There is nothing to do in this market other than to keep your trades small and your cash high. Especially, if you are a perma-bull as we are now finishing the month down for the fifth time in-a-row. This is much different from anything we saw from 2003 to November 2007.

Crude-oil futures hit an all-time, inflation-adjusted high above $103.76 a barrel on Monday. Light, sweet crude for April delivery was recently up $2.08 at $103.92 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange was trading up 70 cents at $100.80.

The upshot of rapidly rising inflation in Asia could not only result in stronger Asian currencies, but also in reduced Asian investment in Western bond markets and, over the longer term, the need for higher real rates in the West with commensurate implications for lower economic activity.

Of immediate consequence: be very careful of overvalued US and EMU government bonds.

Cash is a position, too. Sure, it’s completely vulnerable to inflation, but so are most things. And it’s absolutely invincible against sudden selloffs, against bad earnings, against sudden political turmoil, and against the steady water torture of a broad market decline.

Higher costs for energy and food last year pushed inflation up by the largest amount in 17 years, even though prices generally remained tame outside of those two areas. Meanwhile, industrial output was flat in December, more evidence of a significant slowdown in the economy.

City anxieties are mounting that the global flood of ultra-cheap Chinese exports may be ending, threatening to stoke inflation and make it harder for the Bank of England to cut interest rates to bolster a vulnerable economy.