The nascent reflationary bump is due to a slight uptick in wages caused by plunging productivity at the end of the cycle. You know, just like 2008...
*Free Trade* is not free it's a temporary delusion which trades increased profit margins for lower revenue, until lack of investment implodes profits as well:
WSJ: Aug. 9, 2016
U.S. Productivity Has Been Plunging Since The Early 2000s
CNBC: Nov. 17, 2016
Janet Yellen: "I have no clue why business investment is so low"
You had us at no clue...
Where was I...
The nascent blip in (wage) inflation was solely due to collapsing productivity at the end of the cycle ironically caused by inadequate investment. A headfake:
Wage CPI (red) with One Year Treasuries:
Reason to go ALL IN?
I suggest not...and yet, the only way this could all end:
"Not this again!!!"