Wednesday, March 20, 2013

Where's the inflation?

Or perhaps more accurately, when's the inflation?  If you're like me, you've been waiting for an explosion in the inflation rate since the Obama stimulus package was approved (though my wife says that if I just go grocery shopping with her, I'll know exactly where the inflation is!).  Too much money has been pumped into the economy for too long for it not to cause massive damage; at least that's how I see things from a macro perspective.  So what is going to cause it to hit? And when? Those two questions are the subject of an interesting, albeit somewhat dispiriting, article at Forbes.  Here's the concluding section:
The probability of any one of the above-mentioned events (and many more that could be added to a list of potential triggers) may be small in a given year, but the combined probability of at least one or more of these events happening in the next three years is high. It is doubtful that the Fed or the Obama administration has a Plan B for dealing with any such shock. Politics-as-usual demands that those in charge be completely surprised when a shock occurs; that way someone else can be blamed.
Definitely a worthwhile read, available here.