Inflation—Running Out of Road

The comments below are an edited and abridged synopsis of an article by Goldmoney Insights

If you think that price inflation runs at about 1.6%, you have fallen for the Bureau of Labor Statistic’s CPI myth. Two independent analysts using different methods (the Chapwood Index and prove that prices are rising at a far faster rate, more like 10% annually, and have been doing so since 2010.

This article discusses the consequences of price inflation suppression, particularly in light of Fed Chair Jerome Powell’s Jackson Hole speech, when he downgraded the importance of price inflation in the Fed’s policy objectives in favour of targeting employment.

Inflation Running Out of Road | BullionBuzz
Business concept. End of the Road. 3D illustration elements.

It concludes that the reconciliation between the BLS CPI figure and the true rate of price inflation is inevitable and will be catastrophic for the Fed’s policy of suppressing interest rates, its maximization of the wealth effect of inflated financial asset prices, and for the dollar itself.

Up for discussion: monetary inflation takes off; waking up to reality; the inflation problem is about to get worse; and pricking the bubble.

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