sprottmoney.com / By Craig Hemke / February 15, 2017
Isn’t it interesting that, all of a sudden and after eight years of supposedly flat prices and deflation fears, all the rage is “surging inflation” and this phenomena may “force the Fed to act” to raise rates again as soon as March?
I don’t know. Maybe there really is a sudden surge of price inflation? How would I know when I’m just a dope with a MacBook? However, I think it’s fair to be more than a little skeptical..especially when it comes to the efficacy of government-created data. Is it possible to prices at both the wholesale and consumer level to suddenly surge to multi-year highs simply because Trump was elected? I’m having a hard time connecting the dots because that doesn’t seem likely or possible. Instead, it’s almost as if The Fed is dying to hike rates for their Banks and they’re getting the data they want/need to justify their ends.
To that point, check this chart that I pulled from Twitter. Note that it’s another one of those FRED charts from the Fed’s own database. So, help me out with this…If the purchasing power of the dollar is down 30% over the past 17 years, how is it that NOW is the first time that we’re actually seeing significant MoM and YoY inflation numbers??