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It's a theory for why many non-CPI assets are inflating in price and it has been discussed ad nauseum since March. One group (including the Fed) points at CPI
by wtf_is_up 6y ago
It's a theory for why many non-CPI assets are inflating in price and it has been discussed ad nauseum since March.
One group (including the Fed) points at CPI and PCE and says there is no inflation, in fact they want some inflation but can't get it.
The other group says there is inflation but it is 'asset inflation' causing things like real estate, healthcare, education, trading cards, classic cars, crypto, etc to sky rocket.
And then you have gold bugs and contrarians like Mike Burry talking about Weimar 2.0 hyperinflation coming.
You have to go to St Louis FRED data and decide for yourself. Look at M1 and M2 supply, velocity etc. Commodities have been on a tear for 6 months after a 12 year bear run. That could just be supply shock for a quickly recovering economy. And now we have an incoming 1.9T stimulus, with a lot of it going directly to consumers instead of sitting on bank balance sheets like QE. Who knows?