Apr 29 - 2021
‘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.