Tuesday, November 3, 2015

The Titanic Is Well Anchored

PW: Sept. 27, 2015
The Fed Believes that Inflation Is Well Anchored
In other words, the Fed believes that 35 years of imported deflation is "transitory". Even as deflation floods in via their fake-believe recovery aka. strong dollar. It's Monetary Policy by Police Squad...




Rate hike expectations are back near year highs. What could go wrong?


The above chart zoomed out 15 years for asinine perspective:



Here below are forward deflation expectations as imputed from inflation protected bonds. In other words, the Fed is basically planning to raise interest rates during Lehman...


Why did inflation expectations plummet in the past year?
Below are inflation (deflation) expectations (inverted) with the dollar to get the answer
1:1


Meaning that massive amounts of deflation are being imported merely via Fed fake believe bullshit aka. "strong dollar"

What to do?
1 year treasury yields (black line). Average S&P stock red line: