When I said perception problem, I don't mean to say that there there isn't a problem. I totally agree about that. I think everyone who is watching is in agreement on that. I was speaking more about the debate between inflation vs. deflation. Soros is warning about deflation here but my perception of the political pressure has been that governments need to tighten in and spend less. Unemployment is on the rise but the idea that government can come in and be counter-cyclical is politically taboo.
Overall, I think this whole topic is crazy complex and one where your instincts are probably wrong. I was simply picking on a small point that I don't think the evidence shows markets are warning about inflation, it's pundits and politics that are doing that.
Overall, I think this whole topic is crazy complex and one where your instincts are probably wrong. I was simply picking on a small point that I don't think the evidence shows markets are warning about inflation, it's pundits and politics that are doing that.