Tag: price inflation

Long Rates Continue To Climb As Inflation Persists. Nothing To See Here.

Long Rates Continue To Climb As Inflation Persists. Nothing To See Here.

The Fed would have us believe "There's nothing to see here," (to quote Frank Drebin), as it relates to inflation. Consumer spending funded by government debt is of inferior quality as compared to spending funded by increased production. In January Americans spent their debt-funded government checks that were mailed out at the end of December. … Continue reading Long Rates Continue To Climb As Inflation Persists. Nothing To See Here. →

We Found The Inflation The Fed Is Looking For

We Found The Inflation The Fed Is Looking For

We found rampant asset inflation around most every corner. Frankly, it was not difficult to find. The Fed either needs to re-tool its definition of inflation or be transparent about the fact that it is working diligently to promote the wealth effect. Here are a few asset bubbles as measured from the market trough in … Continue reading We Found The Inflation The Fed Is Looking For →

Real GDP Doesn’t Begin To Tell Inflation’s Story

Real GDP Doesn’t Begin To Tell Inflation’s Story

I mentioned to a friend last night that I expect 1% Real GDP growth once we normalize after this recovery that will last at least for the next several years. However, the traditional "Real GDP" calculation understates inflation due to its narrow definition of inflation - the CPI. The Bureau of Economic Analysis does not … Continue reading Real GDP Doesn’t Begin To Tell Inflation’s Story →

Near-Term Consumer Price Inflation Risk Is Likely Low

Near-Term Consumer Price Inflation Risk Is Likely Low

Despite a record increase in the Money Supply (M2) the U.S. economy likely will not experience near-term consumer price inflation given less than robust Personal Consumption. Further expansionary monetary policy will increase price inflation risk, particularly if Personal Consumption continues to rebound. This story is most efficiently told with pictures and captions. Click on any … Continue reading Near-Term Consumer Price Inflation Risk Is Likely Low →