"The evil that men do lives after them; the good is oft interred with their bones; so be it with Caesar."
What Inflation? "Oh, that's nothing to worry about, the central banks have no choice but to keep juicing markets"… The market is so focused on the short-term and ignoring the consequences of the last 10 years of QE, monetary experimentation and easy rates, that its blundering into the next crisis. Inflation matters, and has jumped from financial assets into the real economy.
I should warn readers this morning's porridge is going to be yet another of my irregular notes on how the Global Financial Crisis ("GFC") which began in 2007 is still with us.. We're just moving on to a new stage… Enjoy Chapter 384 of The Fall of Money – The GFC: 2007-2031.
This morning – What inflation?
Huh? Last week the market convinced itself inflation apparently wasn't an issue. Yield curves flattened, bonds tightened, and even though stocks were anticipating the best-ever-earnings-season, there was absolutely nothing to worry about in terms of rising prices… Apparently…