The Big Reversal: Inflation and Higher Interest Rates Are Coming Our Way

of two minds - Charles Hugh Smith:

This interaction will spark a runaway feedback loop that will smack asset valuations back to pre-bubble, pre-pyramid scheme levels.

According to the conventional economic forecast, interest rates will stay near-zero essentially forever due to slow growth. And since growth is slow, inflation will also remain neutral.

This forecast is little more than an extension of the trends of the past 30+ years: a secular decline in interest rates and official inflation, which remains around 2% or less. (As many of us have pointed out for years, the real rate of inflation is much higher--in the neighborhood of 7% annually for those exposed to real-world costs.)

Continue Reading at of two minds.....