All Roads Lead To Inflation
US, China, Europe, UK all with double digit stagflation, can it get any worse?
From 2000 to present: every $5 of debt we add generates $1 in GDP growth. What happens when additional debt adds ZERO growth?
From Fleck's latest...
Food and health care are underweighted in the CPI. In fact, the U.S. counts food as only 8% of the index.
Whereas, it counts for about 10% in the United Kingdom, about 15% in the rest of Europe and more than 18% in Japan.
U.S. household spending on food, by income quintile, all but the top 20% of earners spend at least 20% of their paychecks on food.
Although it's impossible to know whether we will actually reach zero hour, it does seem possible when thinking about adding more debt to a post-housing-bubble economy.
An economy that reaches Marc Faber's zero hour is one in which increasing debt creates no growth. It only increases prices.
We gently repeat one of our mantras: Anyone who claims that inflation is under double digits is either a paid liar or fool or both.
From 2000 to present: every $5 of debt we add generates $1 in GDP growth. What happens when additional debt adds ZERO growth?
From Fleck's latest...
Food and health care are underweighted in the CPI. In fact, the U.S. counts food as only 8% of the index.
Whereas, it counts for about 10% in the United Kingdom, about 15% in the rest of Europe and more than 18% in Japan.
U.S. household spending on food, by income quintile, all but the top 20% of earners spend at least 20% of their paychecks on food.
Although it's impossible to know whether we will actually reach zero hour, it does seem possible when thinking about adding more debt to a post-housing-bubble economy.
An economy that reaches Marc Faber's zero hour is one in which increasing debt creates no growth. It only increases prices.
We gently repeat one of our mantras: Anyone who claims that inflation is under double digits is either a paid liar or fool or both.
Comments
If you feel so inclined, could you explain why smart people like you, Fleck and Barry Ritholtz write about rampant inflation, while equally smart people like Mish Shedlock are writing about DEflation?
It's all so confusing for us former English majors.
Thank you.
A 33 PCT LOSS IN HOUSE VALUE SEEMS TO ME TO BE A DEFLATION.