High Inflation May Already Be Behind Us

[amanaplanacanal]

I love the chart which purports to show the correlation between money supply and inflation. Anybody else think it looks totally random? Except that he selected a nine month lag to make the peak line up.

[scottiebarnes]

What's your understanding as to the source of inflation in an economy?

An increase of nominal money in an economy creates competition over the same limited quantity of goods which causes a rise in prices. AKA when money is cheap (low interest), people borrow more, which becomes spending, which leads to increased demand (and usually inflexible supply), etc.

[tmn]

There appears to be correlation to me. Not perfect. But far from random

[yolobey]

cries in turkish lira

[bamboozled]

The article is by “Tyler Durden”, is it a joke ?

[bitlax]

It's the Zero Hedge nom de plume.

[gregw2]

Authored by Lance Roberts (not zero hedge) posted by Tyler Durden (zero hedge editor pen name)

[withinboredom]

The dollar is waaaay over valued right now, by at least 30%. The Euro is also undervalued. Eventually there will be corrections.

[thoughtstheseus]

Let’s hope no one looks at the Yen.

[midislack]

May? LOL, unless they start destroying the new post-2019 money, no. Heh.

[coverband]

They've literally done that though -- look at all the on-paper profits that have disappeared from the crypto, stock, real estate markets... Look also at the fact that you've already started paying more $ for the same essential products and don't expect them to go below today's levels...