According to those with the Federal Reserve, they are surprised and have no explanation for the persistent lack of inflation they claim that they've been seeing in the market. They can't understand why inflation hasn't been hitting their 2 percent annual target rate.
They continue to try and maintain the narrative that everything is fine , that things are better than ever, but maybe they aren't telling the whole story. And even Yellen herself has previously admitted that perhaps the FED could be mistaken in its assumptions about inflation.
Yellen might want the public to believe that inflation isn't anything to worry about, but some say that we can soon expect to see prices rise and that inflation is going to go much higher. It still might take some time to see though, as one recent Reuters poll suggests that inflation is expected to remain below their 2 percent mark until at least 2019.
Not everyone agrees that inflation is as the FED says it is.
Ron Paul, author of the book End The Fed, was recently on the live show Futures Now that's aired on CNBC and he shared his thoughts on inflation in the market; which he says is all over the place.
“I don't want to make a prediction, but if in a year from now it's down 50 percent I wouldn't wake up and say 'wow! I never expected that'...” - Ron Paul
Paul went on further to say that he believes “there's a ton of inflation. Bonds are representing inflation... These high prices in stocks..that's inflation.”
When asked on why those with the Federal Reserve cannot accurately distinguish inflation in the market as Paul does, he suggests that they do see it but that they don't want to see it.
He suggests that if they were to emphasis it then that would signal that they were doing something wrong.
There are a few financial analysts who have been warning for years now that we could very soon see a significant stock market correction, but as far as how deep that correction might be that's still a guessing game. Paul says that we cannot judge exactly when it will happen or how fast it might happen, but he does say that you can look for telling signs--distortions in the market.
It's suggested that this coming correction might involve a collective stock market, real estate, and bond crash and that the crash we saw back in 2008 was only a speed bump leading up to the real thing.
Once the inflation does show up as analysts suspect that it eventually will, and we start to see higher prices, it will mean a lower standard of living for millions; especially difficult for those who are on a fixed income.
The coming crash will be a result of the overwhelming manipulation that government's around the world have done, according to analyst Mike Maloney. It has “all been a manipulation” he says and such manipulations “always fail” he warns. However, not everyone has such a gloomy outlook on what is to come, and many expect that when things get tough that the FED will quickly jump in to "rescue" resolve the situation.
But how long can they really try to sustain things with their monetary heroin ?
Pics:
Pixabay
Pixabay
Sources:
https://www.cnbc.com/2017/10/20/watch-fed-chair-yellen-speak-on-monetary-policy-since-the-financial-crisis.html
https://www.cbsnews.com/news/yellen-federal-reserve-perplexed-by-chronically-low-inflation/
https://www.cnbc.com/2017/12/01/ron-paul-inflation-is-creating-a-dangerous-distortion-in-stock-market.html
https://www.cnbc.com/2017/09/26/yellen-fed-wrong-on-employment-inflation-meaning-easier-policy-ahead.html
https://www.cnbc.com/2017/09/26/the-federal-reserve-doesnt-understand-inflation-causes-larry-kudlow.html
http://business.financialpost.com/news/fp-street/when-inflation-is-not-always-and-everywhere-a-monetary-phenomenon
https://seekingalpha.com/article/4126697-peter-schiff-fed-behind-curve-financial-conditions-loosest-level-since-1994
https://www.reuters.com/article/us-fed-policy-poll/fed-rate-expectations-on-the-rise-before-tax-cuts-passed-senate-reuters-poll-idUSKBN1DY1LX
https://www.bloomberg.com/news/articles/2017-12-04/u-s-inflation-rebound-hasn-t-been-the-right-kind-for-this-fed
https://www.forbes.com/sites/prestonpysh/2017/06/21/an-interview-with-jim-rogers-of-course-we-are-in-a-stock-market-bubble/#56db0cad6394
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