Florida may have dodged Mother Nature’s nasty weather bullet, but no such luck is in sight for the man-made economic catastrophe which is hurtling down the pike. We are referring to the Great Global Bond Bubble, which continued to inflate today—with even the 10-year UST touching 1.42% earlier this AM.
That is to say, for a negative 80 basis points of return after inflation as measured by the core CPI ex- food and energy (which is up 2.2% on a Y/Y basis) you too can be the proud owner of Uncle Sam’s 10-year IOU.
And, yes, he will insist on taxing your niggardly, below inflation interest earnings just the same.
Indeed, it would appear that only Wall Street talking heads, Fed heads and the Orange Combover have been blinded to the inflationary facts of life. The above inflation trend averages about as close to the purportedly magic 2.00% target as you please—posting at 1.995% per annum since the target became official at the January 2012 Fed meeting.