Saturday, April 7, 2018

Top Bankster Warns of Price Inflation Threat

Jamie Dimon, chairman and CEO of JPMorgan Chase, in his recently published letter in the bank's annual report, warns of the threat of accelerating price inflation:
Many people underestimate the possibility of higher inflation and wages, which means they might be underestimating the chance that the Federal Reserve may have to raise rates faster than we all think.
We have to deal with the possibility that, at one point, the Federal Reserve and other central banks may have to take more drastic action than they currently anticipate.
This is the exact same warning I have been delivering in the EPJ Daily Alert.

Pretty much all investors, analysts and Fed officials hold the view that price inflation will remain fairly stable around 2% but this is just forecasting the current trend into the future.

Given the amount of new money pumped into the system since the 2008 financial crisis and the growing confidence among consumers, the threat of a spike in price inflation is very real. First to the 3% range, as measured by government statistics, and then the 5% range.

Fed officials won't get concerned until prices are climbing between 4% and 5% and then they will really start raising rates in the fashion Dimon warns they will.

-Robert Wenzel 


  1. But will wages? No. Wages have been stagnant for years now. But hey, we need more crappy turd worlders because everyone really believes that BS unemployment numbers?

    1. If a fruit picker's wages negatively affects you, you might just be the biggest loser in the Western world.

  2. Fed might want to raise rates rapidly but probably would not. We should not forget about 21T in gov. debt. US Treasury would have to pay higher rates to refinance this old debt plus upcoming 1T/year of new debt.

    1. Only if they have no choice. At 5% interest the debt servicing would probably eat up the entire federal budget.