26 July 2019

Well, D'Oh!!

OK, another admission today that neither the pundits nor policy makers nor press get it
Central bankers around the world, including in the US, are also struggling to understand why inflation has remained muted, propelling officials to move toward cutting rates to get ahead of any economic calamity.

Gad. You have to have more moolah chasing output today than you had yesterday to get inflation. We know, without doubt, that CPI/PPI inflation is near non-existent and has been for some years following The Great Recession. We also know, without doubt, that the moolah pushed into the USofA (and global) economy by Washington has gone to the 1% predominantly. We also know, without doubt, that asset inflation has been raging the whole time.

So, here's the deal:

IT'S THE DISTRIBUTION, STUPID!!!

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