The super-rich talk up about inflation fears, but...

[cthulu2016]

I like to post this chart of 10-year Treasury Note interest rate yields every now and then. It's so dramatic! This particular version is a year or two old, but it's the newest I could find as a jpg.

The line on the right edge has continued downward the last two years and is at 1.88% today. That is below the previous record low of 1.95% in 1941.

In 1932 in the depths of the Great depression with banks failing right and left and active deflation eroding everything in sight investor's estimation of inflation during the next ten years was almost twice as high as today (!!!)

The super rich do not expect any substantial inflation during the next ten years and, yes, they do know that we have greatly increased the money supply and all that. They also know that Romney's promised 4% unemployment (snort!) would touch off some wage and price inflation... and we can see how likely they think it is that unemployment will ever get very low in he next few years.

Interestingly, the same super rich put clowns like Hannity and Beck on TV to tell ordinary slobs we are on the brink of Wiemar-style hyper-inflation, and business TV is as bad, being absolutely full of inflation doomsayers.

I am not saying the super rich are psychic. But when you control governments and central banks you aren't really 'predicting," if you know what I mean.

Anyway, it's amusing that the powers that be stoke inflation fears while simultaneously bidding up Treasury notes to prices where they pay less than 2%. Funny how that works. (Hint: They want, and seem to expect inflation to go even lower. They have reasons to wish for that.)

This reminds me of the spectacle after 9/11 when the powers that be painted selling stocks when the market would reopen a week later as unpatriotic. The weekend before the market reopened was all financial talking heads spewing about how small investors needed to stand pat. And then Monday morning all the big financial institutions DUMPED stock like it was on fire. As Nelson Muntz would say, "Ha ha!"

[cthulu2016]

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