John Rubino, Chen Lin and Michael Oliver return. Price action in markets often seems counterintuitive. Alasdair explained why stocks often decline even as earnings begin to rise because stock prices have much more to do with flows of money than with fundamentals. Last week Richard Maybury opined that an increase in monetary velocity may be starting which could trigger general price inflation not unlike the 1970s. Indeed your host’s Inflation-Deflation Watch now appears to be entering an inflationary breakout. If so, what does that mean for Fed monetary policy in light of debt levels never seen
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