Dear Fed: This Is Where The Inflation You Are Looking For Is “Hiding”

Friday, March 24, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Mar 24, 2017

The Fed’s most recurring lament over the past 8 years, ever since the Financial crisis, is that there has been no measurable inflation in the US economy when using such conventional indicators as CPI, even though according to recent measurements by PriceStats real inflation, not the BLS’ seasonally-adjusted, goalseeked and politically convenient mutant, is now running at a blistering 3.6%, the highest in five years.

That however has not stopped Fed members such as Williams to declare idiotically that since there is “no inflation”, it is the Fed’s duty to run policy “too hot” to spur inflation:

WILLIAMS: RUNNING POLICY TOO HOT TOO LONG WILL SPUR INFLATION
WILLIAMS IF INTEREST RATES REMAIN LOW FED NEEDS TO “THINK HARD” ABOUT STRATEGIES LIKE A HIGHER INFLATION TO BE SURE ITS INFLATION GOALS MET

Unfortunately, since the Fed – which several years ago canceled tracking M3 because “it was too expensive” – can not afford to buy a subscription to a service such as PriceStats, here is a simple answer where all that runaway inflation the Fed has created since the financial crisis courtesy of trillions and trillions in central bank liquidity, has ended up. Even better, the answer comes from the Fed’s favorite FDIC-backed hedge fund: Goldman Sachs.

The Rest…HERE

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