THE NOTION THAT THE FED CAN LEAVE RATES LOW..."UNTIL" THE LABOR MARKET COMES BACK...COULD BE A DISASTER...
THE US LABOR MARKET IS STRUCTURALLY DAMAGED...IT SIMPLY ISN'T COMING BACK...
DEINDUSTRIALIZATION CONTINUES APACE...AND THAT IS NOT GOING TO CHANGE IN THIS CYCLE.
HENCE HUGE PRESSURES WILL BUILD ON COMMODITIES...AS MORE AND MORE DOLLARS ARE PRINTED...ON THE THEORY THAT INFLATION CAN NOT OCCUR WITH WEAK LABOR MARKETS AND LOW WAGES...
THE LABOR/WAGE PUSH THEORY OF INFLATION WILL BE DISCREDITED SOON...
BUT BY THEN A HYPER-INFLATION SCENARIO COULD BE BAKED IN THE CAKE...
THE FED NEEDS TO LOOK AT THE VOLUME OF MONEY IT IS CREATING...FOR THE NEXT ASSET BUBBLE...AND NOT AT THE DOWNTRODDEN AMERICAN WORKER...WHO WILL NOT BE COMING BACK ANYTIME SOON...
THE US ECONOMY IS A POST-KEYNESIAN "BUBBLE ZOMBIE" THAT HAS NO MODEL IN MODERN ECONOMIC THEORY...
