New Thug

In our recent blog, "Choose Your Thugs Carefully," we noted a new economic thug is here, slow growth and inflation. Now you have even more evidence with the recent Bank of England announcement.

On Friday, both the Bank of England AND the US Federal Reserve made clear signals that they WANT inflation.

The Bank of England is prepared to tolerate higher inflation over the next few years and will keep interest rates low to support economic growth, according to Governor Mark Carney.

Source: Telegraph

In a further indication that the Federal Reserve will be inclined to let inflation run hot for a while, Chair Janet Yellen on Friday said it's useful to consider the benefits of a "high-pressure economy."

Some would call this stagflation. What you really want is to turn it into money. This is Fed Chair Yellen's new buzz word, pressure economy. The Fed is out of ideas and bullets.  This is their version of Hillary's ear piece during the debate. "Hey, Mark! This is what we're doing."  "Hey, Janet. Roger!"
 You might want to consider the inconsiderable up to now, commodities. And we will let you imagine what one or two of them might be.