Rest assured that high inflation, if not hyperinflation, coupled with wage stagnation because of increasing unemployment, both U3 and U6, will raise its ugly head come late spring. The trigger will be pulled with the passage of Porkulus come Tuesday. Think food is expensive now? Wait till summer.
Nope. Too much credit destruction, money velocity sinking below 1, more asset deflation. Alt-A and Option ARM resets out the wazoo starting this summer, not to mention a CRE debacle, will overwhelm everything.
Besides - inflation is not the rise in just a few prices, it’s a general rise in prices.