The fed wants inflation, but not all inflation is created equal. In 90s, we had a good economy. The middle class was doing well. There were good jobs, technology was booming. McMansions were the new thing everyone wanted. Demand for goods and services was greater than supply/

Demand “pulled” prices higher. (Hence the name demand pull inflation) this is the “good” inflation they want. It represents strength in the economy as people are doing well & are willing to pay more. This is the “pent up demand” inflation Powell expects when we return to normal./

In the 70s we had a whole dif type of inflation, cost push inflation. Commodity prices rose rapidly causing producers to pay more for raw materials. These added costs got “pushed” onto consumers. There was no underlying strong economy to compensate. This is what stagflation is./

Today, we have rocketing commodity prices. Lumber, corn, soybeans copper, all up nearly 100% from 1 yr ago. We have a fed that’s gonna let inflation run hot. They want to see the effects of “pent up demand”, that hasn’t happened yet despite rising inflation expectations and ppi./

When (& if) we do get the reopening pent up demand surge, inflation will be hot as fed wants but underlying cost push inflation we see now will get blamed on demand & deemed good so no actions will be taken. Inflation will be WAY hot &fed will lose control as they did in 70s/

PPI today at double expectation is exactly what I mean. Commodities up 100% in 1 yr, cpi is 1.5% yoy and ppi came in at 1% mom. Highest yoy in a decade. Someone is lying here & anyone who doesn’t send their butler to get groceries for them sees it everyday/

Fed will let inflation run hot, this inflation will be mostly cost push inflation disguised conveniently as pent up demand. Powell will be complacent . There is no underlying economy to support these higher prices. This will get away from them 1970s style./

Stagflation is our future. Rich get richer, poor get poorer. Old money will flee to gold, as they always do. Middle class have silver, as much as there is supply at least. Past that, only thing left is mining shares. Prepare. /end