We’ve had the inflation already in some areas, lots of it, real estate values- commercial and residential, stock market prices, and look at auto pricing.
Not big wage increases for low and middle incomes. That was “inflation” back in the 70’s?
They found a new way to measure inflation, they called it “core inflation “ and threw out a bunch of stuff. Gas prices, house prices, auto prices, insurance, groceries, it all went up a lot. But somehow “core inflation “ stayed around 1-2% annually. BS. It kept people from asking for wage increases due to Inflation. But, because stock prices went up, senior management got huge wage increases and huge bonuses. CEOs making $5 million now made $50 million.
Our gas price has gone up 50% from the low in March.
The interest rates are so low, all savings is chasing the stock market. Government debt costs are so low, they have so much debt, rates can’t go up. If interest rates go up, debt costs for government would go through the roof and the money that would come out of stock markets would be astronomical. We are stuck at these low rates for the rest of my life.
Central bankers are now buying up corporate bonds issued by business, and paying government rates “to keep the markets liquid and working”. By doing this they are also controlling interest rates in the fixed rate market, keeping them at government rates.
The US 10 year fixed rate has bounced down into the 0.40% to about 0.80% range. Invest $1 million there and in a year you earn about $4-8,000.
Japan has had this low rate and government support thing going for 20-30 years, just treading water. Germany and other euros have negative rates.