Inflation has passed the point of no return

Bloomberg/John Stepek/10-26-2022

Headline inflation vs. 10-Year Treasury yield

Chart courtesy of TradingView.com

“If you’re hoping, as many in markets apparently do, that inflation is still basically ‘transitory,’ I have some bad news: we’ve already past the point of no return. That’s according to a new report from the Deutsche Bank analysts, led by Jim Reid.”

USAGOLD note: Reid points out that there is no monetary anchor like gold keeping policymakers from “embarking on inflationary policies.” Pointing to the deeply negative real rates of return, he sees current central bank policies as the loosest ever seen in peacetime.