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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Joan Osland Graffius who wrote (3901)12/26/2003 3:22:52 PM
From: Crimson Ghost  Read Replies (2) | Respond to of 110194
 
Two definitions of inflation.

Growth of money supply and/or dollar liquidity.

CPI type inflation.

Dollar liquidity has been exploding -- but most of the impact so far has been seen in asset prices.

But just a matter of time until all this liquidity hits the CPI numbers. CPI type inflation still not too bad even though I think the CPI grossly understates the price hikes most households are facing today.

The Fed is doing all it can to boost asset inflation so as to make debt burdens more manageable IMHO. And to this end they are quite willing to lie about CPI inflation so as not to alarm the masses and keep stiffing COLA recipients.