10 Aug 2012
"Currently a level of unemployment of 7% or more seems to be required to keep inflation from accelerating, a level quite unacceptable as a permanent situation."
Before Bill Gross proclaimed that "the cult of inflation may only have just begun," I discussed here a few months ago that we were likely already “ Passing from deflation to inflation .”
I was not alone of course. A quick search shows that many people have been talking about inflation for a few years now. Most, however, have just been making knee-jerk reactions to their not-terribly-well-informed observations of the Fed.
What good mathematicians know however, is that the Fed hasn't quite printed us into inflation just yet. We are at an important juncture, however. In the next year, the world will have to decide between a deeper depression or moving back to growing the global economy.
