Dec. 5 at 9:24 PM
$TLT Where the fed has it wrong, is that they believe that the unemployment rate is rising because monetary policy is too restrictive. This couldn't be further from the truth. It's actually the complete opposite. Unemployment is rising because monetary policy is too loose. Run-away inflation is deteriorating job's growth and weakening the labor market. As the fed continues to cut rates, in order to needlessly stimulate the jobs market, it is only going to exacerbate the problem they have created. They might even attempt QE to stimulate the jobs market. But it is going to send inflation into hyper drive. It is going to be like pouring gas over an open fire. Next year, I expect inflation to continue to rise, at the same time as unemployment, and this time bond yields will not be going down with unemployment. They will be going up. We are repeating the 1970s right now.
