Don't Be Fooled: Inflation Has The Upper Hand

``Those who read history also know that inflation is by far the more common outcome of a situation in which there is entirely too much sovereign debt that cannot be repaid by ordinary means. All one needs is to take a quick glance at the balance sheets and off-balance-sheet obligations of practically every developed country to realize that collective insolvency is the correct term to apply. So at this point in the story, we see that prices have been rising, our fiscal and monetary authorities are trying quite hard to foster even more rapid price escalations, and they are doing so because the system demands it of them. Right now, based on prices, we have to score inflation as the winner, although we’ll be the first to change our tune should the data change.''