Don't you like inflation? what? no? Well too bad because it is the soup of the day.

Today I just read a headline on marketwatch.com stating that the Fed was watching how inflation was slipping through its fingers... I found the melodramatic tone of the headline particularly irritating. This is why I have so little respect for people involved in the financial sector because those who are not outright criminals are outright morons. The new narrative that central bankers want to shove down our throat is that a 2% inflation is good. But why? How did they come up with this ridiculous number and how is inflation supposed to be helpful? Correct me if I am wrong but according to the law of demand, the quantity of a good demanded per period of time rises as the price falls and falls as the price rises, so if the quantity of a good demanded falls as the price rises, how is inflation supposed to help households in any way? Well the answer is that it DOESN'T. The truth is that central banks have no other choice but to print into infinity in order to keep capital markets rising and hence making the elite richer while making the rest of us poorer. So, remember this, no matter how much products shrink at the supermarket while the price remains constant, the Fed and other central banks will never reach their inflation "targets" (which originally where a limit, not a target) just by changing the way in which inflation is measured. And if they have to resources to calculating just inflation in the price of Henry VIII's costumes or telescopes to say that inflation is low, trust me they will, while you go to a McDonalds and you end up paying $50 or £50 or €40 for a burger depending on the point of this planet you are unfortunate to live at.