If there is one conundrum Janet Yellen can’t explain, or so she claims, is the case of missing inflation. After all, after printing Trillions in a zero interest rate environment it should be clearly evident.
It is not. The 10-Year note is slightly above 2% while most commodities are in various stages of a bear market.
I find it difficult to believe that Ponzi Finance operators at the FED can’t figure out where their missing inflation is. For GOD’s sake, just read this blog.
Most of the money that Janet Yellen and other central bankers printed went directly into speculative assets. You know….. stocks, bonds, real estate, bitcoin, art, fancy cars, etc…..That is the reason the stock market is selling at the highest valuation level in history.
Instead, we get the following nonsense from the FED
- Gradual rate hikes should help sustain economic growth, Yellen says
- Fed’s Yellen says watching inflation closely but economy is strong
“We continue to expect that the ongoing strength of the recovery will warrant gradual increases in that rate to sustain a healthy labor market and stabilize inflation around our 2 percent longer-run objective.” Fed officials are nonetheless watching price pressures closely, Yellen said, as the “biggest surprise in the U.S. economy this year has been inflation.”
Sure, the economy appears strong because the FED has used its unlimited credit card to give an appearance of prosperity. Yet, the underlying issue of massive debt loads remains.
And that is precisely why we will not see inflation. Just a deflationary collapse.
Again, we have already witnessed this inflation in asset prices, now at unsustainable levels. When the debt bubble finally pops, so will those values. That alone will plunge us back into a deflationary spiral or where we left of in 2008-2009.
Only outright monetization or debt default can trigger inflation at this stage. But that comes at a price as well. Interesting times ahead….that’s for sure.
In terms of the stock market, the situation is incredibly complex. If you would like to find out what happens next, based on our mathematical and timing work, please Click Here.