2021-04-08

Entering the Inflation-Deflation Event Horizon

PPIACO, Producer Prices for All Commodities. Aside from shoing producer prices at a new high, this chart is valuable because it clearly shows what deflationists and disinflationists are thinking about vs inflationists. You can clearly see the post-2008 economy. Aside from a brief spike in 2014, producer prices have gone nowhere in 13 years, much of that caused by oil peaking at $150 per barrel in June 2008. Moving forward, the entire inflation/deflation debate could be settled by this chart. Above and we're talking inflation/stagflation in a year. Below and the rope-a-dope of commodity bulls goes for another round. The inflation-deflation debate is entering the event horizon.

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