The stock markets slumped a little today when Fed Vice-President Stanley Fischer said at an NABE conference that he is ‘starting to see signs of inflation in the data.’

Oh really, is that data related to the US economy? Because if so, no one else seems to be seeing it.

They are not seeing it in the Consumer Credit numbers from this morning, with the big revision from the month before. And certainly not in the Payrolls number from last week, which was jam packed with low paying part time jobs, and further erosion in the middle class.

These bureaucrats are desperate to raise interest rates so they have a ‘tool’ to use, ie cutting the rates, in the not too distant future when their latest asset bubble collapses. It may be doing so already.  And they are both clueless and frightened.

Most of the Eurozone is experiencing outright deflation, and the ECB is trying to buck the terrible fiscal headwinds of the policy errors of the EBC and the German austerians, led by Wolfgang Schäuble.

Is it really so hard to understand that the point of stimulus is to stimulate aggregate demand, purchasing of goods? It is not to prop up an oversized, and corrupt financial system. It is not to further cripple the labor market. It is not to further enrich a very small percentage of very wealthy people, allowing their greed and short sighted stupidity to imperil the future well-being of entire nations.

Have a pleasant evening.

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