Inflation just 2%?

Will we ever have an inflation problem if we measure inflation with the CPI? Those buying TIPs are the dumbest bunch of suckers who believe that it will protect them against inflation. LOL....


With the CPI, everything just improves and you are always getting "more" for the higher prices. It is a so ridiculous, hedonic pricing. Plus CPI takes out "volatile" food and energy costs.

The CPI will never show true inflation, and that's why it is designed the way it is. To give the Fed free rein to print as much money as Wall Street wants.

 

Why do you complain? You do not have to hold dollars. Buy yen or something like that...

 

Look at long term interest rate: that discount inflation and it's not at 2%

 

Why does the Fed with its massive printing operation force rational people to have to hedge out their dollars?

If they actually cared about keeping a sound currency, this step wouldn't be required.

Maybe you are long dollars and could care less if your dollar gets watered down so that we never see a recession again LMAO

GDP will never go negative in nominal dollars if you keep printing like the Fed! Its an unarguable fact.

 

FED is just another player in the markets. World is a little bit more complicated from what you wrote.

 

They are the only player that can print dollars. They are the ones that determine inflation. Inflation is not that complicated. If the Fed prints a lot of money, inflation rises sharply. If they don't, it doesn't.

 

For all the inflation conspiracists that think the government manipulates the numbers. You ever take a look at the 10y TIPS spread?

This is a number that comes from market participants and not from the government. As of yesterday, it prices in an inflation expectation (!) of market participants of 2.3%.

If inflation is so "obvious" and "everywhere", why are the big free market participants not pricing it in?

 

What it includes nothing for is risk. It assumes you, your children, and grandchildren are willing to pay any amount of taxes to repay it.

Are you?

Remember that 5 yrs down the road.

 

Because China has manipulated US bond market; Chinese worker are slave; there is no unions; once China slowly adopts the real market economy; Chinese government can not absorb more inflation around the world at the expensive of their working class. you will see the inflation once again.

 

Oh now it's the Chinese manipulating US inflation? Reading ET, I always thought the US government manipulates and intentionally under reports inflation alone. Maybe the FED and Chinese entered a secret pact