Link-InflationArticle
Article:
Paul Volcker, the former Fed chairman widely credited for putting the clamp on the runaway inflation of the 1970s, once referred to rising prices as "a cruel and maybe the cruelest tax, because it hits in an unexpected way, in an unplanned way, and it hits the people on a fixed income hardest."
Comment:
Just for the record "The Skeptic" will take John Williams' (of Shadow Stats) numbers over those reported by our government. At the very least, Williams is using a consistent methodology instead of moving the goalposts.
Also, inflation is the enemy of a bondholder. Of late, bond prices have traded off with yields scooting higher. We've experienced a secular bull market in bonds. When that ends (now?) rates will be heading higher for years. It should be clear the implications for a nation up to it's ears in debt.
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2 comments:
does that mean no rate cuts?
not necessarily. the Fed controls short rates. economic weakness induces panic at Fed prompting cuts. err on the side of inflation. no doubt.
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