Inflation means expect high interest rates and low bond prices. Monetary policy has been horrific (printing new money out of control) -- inflation is high -- much higher than being reported. And before you cite the CPI or Core Index, let me remind you of a favorite government tactic:
From Murray Rothbard's Making Economic Sense
Quote:
The concoction of the "core rate" is a plausible-seeming example of a racketeering general principle: if you want to make inflation go away, simply take out the price categories that are rising most rapidly. Lop off enough prices, and you can make it seem that there is no inflation at all, ever. Find some excuse for taking out all the rising categories, call whatever is left the "base rate," and presto-changeo! inflation is gone forever.
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