‘Inflation watching’ and ‘FOMC watching’ will undoubtedly continue as key

short-term dynamic factors in the short-term course of global asset prices.

These activities, however, are borderline, or even fruitless, in terms of getting

the big picture right regarding the critical issues of monetary inflation over the

next half-decade and beyond. As of now, the imminent inflation story is most

likely over-cooked as regards sustained consumer price inflation. By contrast,

asset inflation remains intense. The balance of probabilities is that a bust of

present asset inflation will precede the sustained emergence of consumer price

inflation at high levels.