I sold ES last friday

piezoe said:
Friedman said inflation is everywhere and always a monetary phenomenon; the dollar is stable; the Fed's inflation does not exceed target; yet inflation in goods and services for ordinary mortals continues at a pace greater than the Fed's 2% target. The Fed's earlier experiment with Friedman's money supply model failed, and they long ago returned to interest rate control as their main tool. Was Friedman wrong? Or was he just being impractical in a world awash in dollars, and like all economists, forced to over simplify by assuming we would act rationally. In retrospect, could any economic assumption be more foolish than that!


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IMHO:

The Fed fund rate has basically been kept at 0% for almost six years. Inflation is becoming a serious problem in US.

For example, New York insurance companies are seeking to raise premiums by 13% next year.

http://www.lohud.com/story/news/health/2014/07/03/health-insurers-ny-seeks-rate-increases/12174843/
 
The goods people have been buying up over the last 2-3 years such as cars and homes have increased in price substantially. The cars that most can afford are either being financed over 5-7 years or being leased. Housing has become unaffordable again accept for the top 1% and rents are hitting a peak to a point where most are saying WTF to both. Housing is not slowing down due to lack of demand, that is a BS media headline.

Central bankers can stay in denial all they want and continue to say monitor economic data. In the end, they are now the bag holders and is the main reason why they will not raise rates. Look at what happens to the market anytime Yellen opens her trap about interest rates to the upside. They are testing the market and until it does not react with selling pressure, money will remain cheap.

moonmist said:
IMHO:

The Fed fund rate has basically been kept at 0% for almost six years. Inflation is becoming a serious problem in US.

For example, New York insurance companies are seeking to raise premiums by 13% next year.

http://www.lohud.com/story/news/health/2014/07/03/health-insurers-ny-seeks-rate-increases/12174843/
More...
 
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