If this is as high as inflation gets, what will happen when things roll over?

It’s about consolidating the world’s wealth and power
Anemic economic growth and subdued inflation are a perfect pair for QE

We have spoken about this for a long time and the economic data coming across the tape still confirm this. Despite all the monetary and fiscal stimulus, consumer price and economic growth are still anemic. While most observers will conclude that quantitative easing (QE) has been a failure or at least relatively unsuccessful, you and I know better.

If an economic “guru” like Martin Armstrong refuses to believe that there is a conspiracy for a global government and maligns the Bible, I would discount much of his analysis. It is obvious to me that there is a guiding hand, which is moving this agenda forward. What I see continuing to unfold transcends cycles and ad hoc management. This system is working as intended.

QE and the more recent types of unconventional monetary policy were specifically designed by the elites to consolidate the world’s wealth and power. In order for QE to move forward, we need an economic dynamic with little inflationary growth, fading bond yields, and subdued activity.

I see the table being set once again.

In response to yesterday’s article, I received an email from another reader in Canada.

I agree, that we are going to see a deflationary scenario. Unemployment rates in the U.S are at pretty much record lows. Pretty low here in Canada and Australia, and still we have low inflation for most items except housing and food. You talk about that in one of your podcasts.

Toronto, CA

I believe he is correct. If the money is not getting down to the end-user, the consumer, prices can only rise so much. So far, only asset prices and government subsidized sectors (e.g. housing, healthcare, education) have seen prices increase. Let’s look at the leading edge U.S. employment data.

Jobless claims continue to climb off historic lows, even after accounting for the government “shutdown..” What happens to inflation when these numbers move back higher?
Jobless claims are rising. Has the unemployment rate already bottomed out? If so, what does this mean for consumer prices?

Let’s take a look at the most recent consumer price data here in the United States.

The CPI data this week clearly show a drop-off in the growth rate. The CPI data coincide with the drop in longer-dated US Treasury yields.

Let’s take a look at the 10-year US Treasury yield

The UST 10-Year yield started to fall even before the Fed changed course. What will happen to yields when the economy turns down again? Most likely, they will move lower

I have to conclude that when things turn down again, inflation data will follow suit. The debt obligations continue to grow and its servicing burden sucks the life force out of the economy. There is never a good time for tax cuts and higher fiscal spending when it grows the government deficits. Sorry, supply-siders and socialists.

Going forward, I look for the U.S. dollar to be well supported at these levels. As the global economy ebbs further into the abyss, the dollarized global debt markets and large domestic oil sector will place a floor under the greenback.

Don’t worry, all this anemic activity is great news to the central bank owners and to those who own the assets. The elites can continue to buy up the world.