No doubt, cheap goods and adjustments to CPI play a role in low inflation reported to-date, ps.
Question: what do you think, ps and sjk, will happen if (when, in my opinion) the Chinese, Japanese, and Brits decide to sell their $2.5 trillion in Treasury securities and the U.S. government gives them their $2.5T? That’s $2.5T dollars back in circulation. Given that M1 is only $1.4T, that sounds like a clear-cut formula for REAL inflation, not this wimpy stuff that we’ve seen to-date.
