"Today's Modern Monetary Theory world, with its double barreled fiscal and monetary stimulus, is crashing head on with an accumulation of years of declining investment in the basic industries such as materials, energy, and agriculture. In our analysis, the 'end game' for the Fed's twin asset bubbles in stocks and bonds is inflation. We can already see it developing on the commodity front."

- Crescat Capital

INTRODUCTION

As most loyal EVA readers know, for the 15 years of this newsletter's existence, I've been a believer in, and forecaster of, subdued inflation.  In fact, I've often written that for nearly all of my 42-year career I've felt that inflation would stay low, despite some intermittent flare-ups late in economic expansions.  Of course, 2% inflation over 40 years means a loss of 55% in purchasing power, which doesn't exactly qualify as true price stability.