Like freedoms truth, I'm worried that the current "cures" will "sow the seeds of inflation down the road". However, I take comfort in the fact that the the 10-yr Treasuries are at 4.02% this moment. This is nominal inflation plus about 1.5% which is (I believe) slightly below the historic long term average cost of money. This seems to indicate (to me anyway) that the "market" is pricing in inflation rates similar to what we are currently experiencing. I would also note that the 10-yr yield has moved up a bit recently. Of course these prices could also reflect a "flight to quality" phenomenon vice an inflation indicator. Thoughts??
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Like freedoms truth, I'm worried that the current "cures" will "sow the seeds of inflation down the road". However, I take comfort in the fact that the the 10-yr Treasuries are at 4.02% this moment. This is nominal inflation plus about 1.5% which is (I believe) slightly below the historic long term average cost of money. This seems to indicate (to me anyway) that the "market" is pricing in inflation rates similar to what we are currently experiencing. I would also note that the 10-yr yield has moved up a bit recently. Of course these prices could also reflect a "flight to quality" phenomenon vice an inflation indicator. Thoughts??
Oct 14 12:52 pm
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