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At the moment price inflation (i.e. change in to cost of goods and services) is still low. CPI figures are low, whether the CPI does a good job measuring inflation is another matter.
But monetary inflation (i.e. the growth of the money supply) is very high. Check out the changes of M1 money.
Eventually the excess money that has been created is going to cause the price of goods and services to rise (due to a lot of money chasing relatively few goods). As such monetary inflation is eventually going to cause price inflation.
This monetary stimulus has done very little in the way of creating economic growth (at least economic growth that is real i.e. jobs, physical production, exports etc). Again you would have to question some of the actuary of the GDP numbers, especially the US Q3 number (9% annual growth?).
So in the future it would look like there is going to be both high inflation (both monetary and price) as well as low economic growth.
This seems much like the 1970's situation. In hindsight how would you trade the markets of the 1970?
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