Thursday, October 23, 2014

Wage Expectations Back to 2006 Levels

The Fed's mad money printing is resulting in the masses becoming optimistic again. Wage expectations are soaring. Will this mean that they will lower their desire to hold cash balances? I believe so. The lower the desire to hold cash balances declines, the greater the price inflation will be.

Mainstream economists, who simply are projecting out current price inflation trends, have no clue as to how this occurs. They have no idea how quickly price inflation can accelerate once the tide turns toward aggressive consumer spending.

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