The “Flation Debate” – A Look Ahead to 2022

The week of Jan. 10, we will hear from both Fed Chairman Powell and Vice Chair-nominee Lael Brainard as they sit (on different days) for their respective Senate confirmation hearings.

It will be a challenge to glean any real, useful tidbits of economic and market information amid the political posturing, imbecilic questions/comments from the senators and the necessary bowing and scraping by Powell and Brainard. None the less, we might actually get a few clues as to just how serious the Fed truly is about its coming "tightening" of monetary policy.

For the first time in a few decades, the Fed genuinely has unleashed a monetary tsunami of such size that it will be difficult to rein in. Over the coming days I will be posting several "macro" pieces on all this...the implications for the stock market, precious metals and more...together with further thematic special issues, replete with a number of my specific recommendations.

For present purposes as we start the year, here is an overview of the factors that suggest--where the matter of the rises in producer and consumer prices are concerned--this recent bout of inflation will be FAR more "sticky" than the numerous but ultimately fleeting flare-ups we've seen from time to time over the last 40 years:

As always, if you have any questions or comments, e-mail me at