I am putting the final touches on a new report today which reveals just how badly inflation is undercounted in the US. The bottom line is that with the rest of the world already reeling from and reacting to accelerating inflation, the game is much closer to an inflationary dénouement for the US than one might suspect by following the Fuzzy Number generator otherwise known as the Bureau of Labor Statistics (BLS).
The week ahead in the markets is simple enough to divine: more asset inflation, dead ahead.
That’s the plan, and here’s the thin-air money printing for the week that will provide the fuel for that plan:
That is, the Fed is going to print more money this week than GE will earn this year. One employs hundreds of thousands of people world-wide developing and delivering actual value over the course of an entire year, and the other employs three people aged 26 to 31 working out of a non-descript government building in NYC to push the enter key on a computer keyboard over the course of four days. Both operations end up with the same amount of money that can be used to buy the same amount of stuff.
Inflationary? You bet.
Let’s review some recent headlines from around the world:
Bank of England Must `Hold Its Nerve’ on Inflation, E&Y Says
Ernst & Young LLP’s Item Club said the Bank of England must “hold its nerve” and not raise its key interest rate until the recovery shows signs of overcoming the impact of the government’s budget squeeze.
by cmartenson 
