{"id":23213,"date":"2017-03-12T11:37:47","date_gmt":"2017-03-12T16:37:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23213"},"modified":"2017-03-12T11:37:47","modified_gmt":"2017-03-12T16:37:47","slug":"2016-debt-binge-produces-surprise-2017-inflation-guess-what-that-means-for-2018","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23213","title":{"rendered":"2016 Debt Binge Produces (Surprise!) 2017 Inflation. Guess What That Means For 2018?"},"content":{"rendered":"<header class=\"entry-header\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/dollarcollapse.com\/inflation\/2016-debt-binge-produces-2017-inflation\/\">2016 Debt Binge Produces (Surprise!) 2017 Inflation. Guess What That Means For 2018?<\/a><\/h3>\n<p class=\"entry-meta\">Just as everyone was finally accepting the idea of deflation and negative interest rates, inflation decides to pay a return visit. In the past day, articles with the following headlines appeared in major publications around the world:<\/p>\n<\/header>\n<div class=\"entry-content\">\n<p><a href=\"http:\/\/timesofindia.indiatimes.com\/business\/international-business\/swiss-inflation-rises-at-highest-monthly-rate-in-five-years\/articleshow\/57538356.cms\" target=\"_blank\">Swiss inflation rises at highest monthly rate in 5 years\u00a0<\/a><\/p>\n<p><a href=\"http:\/\/www.reuters.com\/article\/us-china-economy-inflation-idUSKBN16G06N\" target=\"_blank\">China February producer inflation fastest in nearly nine years\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/mishtalk.com\/2017\/03\/09\/year-over-year-import-prices-at-highest-level-in-five-years\/\" target=\"_blank\">Year-over-year import prices at highest level in five years\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-03-09\/ecb-keeps-bond-buying-rates-unchanged-amid-inflation-flare-up\" target=\"_blank\">ECB keeps bond-buying, rates unchanged amid inflation flare-up\u00a0<\/a><\/p>\n<p><a href=\"https:\/\/www.theguardian.com\/business\/2017\/mar\/07\/food-inflation-doubles-uk-shoppers-feel-pinch\" target=\"_blank\">Food inflation doubles in a month as UK shoppers start to feel the pinch\u00a0<\/a><\/p>\n<p>What happened? Well, towards the end of 2015 most of the world\u2019s major governments apparently got spooked by deflation and decided to ramp up their borrowing and money creation. China, for instance, generated the following stats in 2016:<\/p>\n<ul>\n<li>New loans totaling 12.65 trillion yuan, or $1.8 trillion.<\/li>\n<li>M2 money supply growth of 11%.<\/li>\n<li>Debt-to-GDP ratio jump from 254% to 277%.<\/li>\n<\/ul>\n<p>In Europe, the European Central Bank ramped up its bond buying program, pumping about a trillion newly-created euros into the Continental economy:<\/p>\n<p><a href=\"http:\/\/i2.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/ECB-balance-sheet-March-17.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-14467\" src=\"http:\/\/i2.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/ECB-balance-sheet-March-17.jpg?resize=600%2C303\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" srcset=\"http:\/\/i2.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/ECB-balance-sheet-March-17.jpg?w=600 600x, http:\/\/i2.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/ECB-balance-sheet-March-17.jpg?resize=300%2C152 300x\" alt=\"\" width=\"600\" height=\"303\" \/><\/a><\/p>\n<p>And the US increased its federal government debt by over $1 trillion, presumably spending the proceeds on things that raise wages or increase the demand for commodities.<\/p>\n<p><a href=\"http:\/\/i1.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/US-federal-debt-fisc-16.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-14468\" src=\"http:\/\/i1.wp.com\/dollarcollapse.com\/wp-content\/uploads\/2017\/03\/US-federal-debt-fisc-16.jpg?resize=600%2C460\" alt=\"\" width=\"600\" height=\"460\" \/><\/a><\/p>\n<p>Since there\u2019s no way for the growth of global production to match this blistering pace of new money creation, the result is higher prices for just about everything. Oil and most other industrial materials are more expensive, wages are rising, long-term interest rates (the cost of money) are up; you name it, it went up in the past year.<\/p>\n<p>What comes after a debt-driven spike in inflation? History is pretty clear on this one: instability, as rising interest rates spook the fixed income markets and rising business costs spook stock speculators.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>2016 Debt Binge Produces (Surprise!) 2017 Inflation. Guess What That Means For 2018? Just as everyone was finally accepting the idea of deflation and negative interest rates, inflation decides to pay a return visit. In the past day, articles with the following headlines appeared in major publications around the world: Swiss inflation rises at highest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[11370,14994,195,213,426,7544],"class_list":["post-23213","post","type-post","status-publish","format-standard","hentry","category-economics","tag-11370","tag-14994","tag-debt","tag-dollar-collapse","tag-inflation","tag-john-rubino"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23213"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23213\/revisions"}],"predecessor-version":[{"id":23214,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23213\/revisions\/23214"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}