Markets appear nervous . . . .

[errolanderson]

Why hasn't inflation been sparked at some point since 2009, especially with all the government intervention QE. I mean real inflation, like the 70's and early 80's?

I can perhaps understand the USD not inflating because of it being "reserve currency"

But why hasn't inflation come to Canada, especially since crude prices fell? Our dollar should be closer to 50 cents.

Errol, can you give 3-4 points why inflation hasn't occurred? Is it truly a mystery?

Danny . . . debt . . . record government debt, record consumer debt. There is little room for inflation as consumers are tapped out. This is the failure of Keynesian economics of money printing that central bankers on depending on to rescue this sinking ship. The consequences of this are enormous . . . .

[Klause]

Danny . . . debt . . . record government debt, record consumer debt. There is little room for inflation as consumers are tapped out. This is the failure of Keynesian economics of money printing that central bankers on depending on to rescue this sinking ship. The consequences of this are enormous . . . .

Yup...


Only two ways out are a full reset or triggering hyperinflation and banning indexation of debt.

[danny W1M]

Why hasn't Canadian debt(and other counties besides the USA) caused our dollar to drop more? If it dropped to 0.50 we'd certainly have inflation.

[sofa.king]

No inflation? are you kidding. Everything from fast food to heavy equip has gone up. When a diesel pickup is listed at 90,000 and a combine and header will be close to a million or have you bought groceries lately. Wow inflation is rampant.

[danny W1M]

Nothing like the 70's! Have your wages inflated? Grain prices?

[errolanderson]

Believe the global credit cycle has peaked as well . . .

Central bankers have created an incredible financial mess (IMO) with their can-kicking-policies since the fallout of 2008. I'm being too opinionated on this thread, but their manipulative power now has been greatly diminished. A lot of investors are going to get hurt. Pension funds are already under heavy fire . . . .

[workboots]

It's all interest rates driving prices up and the corporate share buy backs that are driving stocks higher.

I think vehicle & machinery manufactures work together on the fringe of collusion. They price based on interest rates. They know the average consumer will jump after that 1/4ly or month payment if it looks right.

The lease is up, go for the new one, transfer equity and slide into that spanking new unit with lower interest and the same monthly.

Low interest rates give incentive for this type of behaviour but it's a one way street. Only question you have to ask is how low can that interest rate go and that's how high the price of your new unit will get.

Look at P/E ratios across the board in the stock market. Interest rates create this environment and it only makes sence that you see these ratios. Money is only worth what it cost to borrow.

The risk takers are the ones that hung in for the ride. I don't think many rational investors thought this market would do what it has the last while.

[errolanderson]

Strap-in . . . volatility (VIX) is picking up . . . Dow rips above 24,000, Bitcoin rocks above $11,000 this week, then plunges, then surges. U.S. tax reform and Michael Flynn guilty plea rocking markets back and forward.

Treasury market action continues to warn of incoming U.S. recession (IMO) . . . .

Cdn jobs data impressive today . . . powers up loonie. Run toward 80 cents possible?

December may be an interesting market month . . . .

[farming101]

VIX posted a historic low in Nov. A good place to turn higher

[danny W1M]

Errol,,, greenspan called it frothy, wasn't it?