The New Inflation Scare: Is The Economy Really In Danger?

The New Inflation Scare: Is The Economy Really In Danger?

UKRAINE - 2021/01/18: In this photo illustration, US 100 dollar bills seen on an American flag. ... [+] (Photo Illustration by Igor Golovniov/SOPA Images/LightRocket via Getty Images)



SOPA Images/LightRocket via Getty Images



“US companies sound inflation alarm. From home builders to toymakers, businesses say costs are rising.” – Financial Times Headline, March 30

“Costs are going up everywhere. It's DefCon 4 right now.” – CEO of a major American company

“The 10-year U.S. Treasury yields are at a post-shutdown high of 1.63%. …These levels remain historically low, and …actual measures of consumer prices are still unremarkable, and well below 2%. But the shift in market psychology has been very swift, with the prospect of a return to secular inflation discussed seemingly everywhere. Why?” - Bloomberg







After years, decades, of quiescence… inflation is set to explode. Or so we are told. Bond investors have been “routed.” Treasury yields are rising, reflecting the sell-off. The stock market is on edge. Ken Griffin, of Citadel, the mogul-du-jour



“...warned of a doomsday scenario in which accelerating inflation deepens a bond market sell-off, and sends stocks tumbling.”