Stagflation Cometh?

Flying high above the sky
The battles down below look simplified
With no place to hide
--Karla DeVito

As people celebrate multi-year highs in many indicators of economic strength, guess what other measure is ringing the bell. The underlying inflation gauge is marking 13 year highs.

With labor demand and wages moving higher in a stagnant productivity world with trillion$ of stimulus in the system, it is only a matter of time before consumer prices take off.

The Fed will be behind the curve as usual (it already is). When they do take corrective action, they will need to raise rates--dramatically.

Higher rates, lower growth, higher prices...Can you say stagflation?