Imagiflation Takes It

Imagination inflation – a.k.a. imagiflation -- is what’s needed in order to understand price action these days.

Deflationary trends remain; no concrete evidence of inflation just yet. China yesterday posted a notable drop in its May Consumer Price Index. Of course, this bolsters China recovery efforts, according to news sources. Sure, in one sense it does, I guess.

But would the picture be any different if inflationists weren’t in control of the market right now? I think so.