Friday, August 19, 2016

Higher Inflation Now
Would Be Like Kryptonite
"We are in an epic bond bubble globally where higher inflation would be kryptonite. With the bond monster central bankers have created, the last thing they should want is higher inflation. Also, many U.S. citizens are literally living paycheck to paycheck and a higher cost of living without a corresponding increase in wages or any interest income would damage the largest component of the U.S. economy and the lives of millions .. With $13 trillion of negative yielding bonds, and another $10 trillion plus yielding between zero and 1 percent, higher inflation would be the needle that pricks this massive bond bubble. Thus, we can see the dangerous loop that central bankers have put themselves in. They slash and burn rates in order to generate higher inflation but then create the powder keg of danger if they are actually successful one day."
- Peter Boockvar
LINK HERE to the essay

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