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What’s Behind this Messed-Up Bond Market?
So now, inflation has jumped by 6.0% according to the Consumer Price Index for Urban Wage Earners and Clerical Workers, or by 5.4% according to the Consumer Price Index for All Urban Consumers. According to private sector measures, and my own estimates, inflation, when properly calculated, has jumped by a lot more. And Americans are figuring this out because they’re seeing how the income from their labor buys less and less. But the bond market, which is supposed to be the smart money, hasn’t figured this out yet. It too will eventually figure it out, as it did last time – that was in the late 1970s. And ... (full story)