Friday, March 23, 2012

How Quickly Can Price Inflation Explode to the Upside? by Robert Wenzel



The thing about inflation is that it comes out of nowhere and hits you.   

Monetary policy is like sailing. You're gliding along, passing the peninsula, and you come about. Nothing. Then the wind fills the sail so fast it knocks you into the sea. Right now, the U.S. is a sailboat that has just made open water, and has already come about. That wind is coming. The sailor just doesn't know it.