Inflation Ebb and Flow

Here by the sea and sand
Nothing ever goes as planned
--The Who

One argument against Big Inflation from here is that if inflation expections do indeed pick up, then bonds will be sold and yields will rocket. This should be true even at current central bank buy rate, which may be in the neighborhood of 70% of new issues.

Higher rates will fracture the economy. As economy sags, asset prices decline. And more deleveraging follows.

As such, seems like ebb and flow of inflationary expectations. Every time they ebb, upward pressures met w/ deflationary counter force.

This should continue until significant deleveraging takes place. We've hardly started this process.

If this thesis is valid, then general trend of asset prices should be lower, altho not in a straight line.