The tagline for Inflation Watch is “Watching for potential inflation here, there and everywhere.” We borrowed this from money manager Bill Fleckenstein.
Apparently, there is at least one other person forecasting a time when inflation is “everywhere.” CNBC interviewed Arun Motianey, director of fixed income strategy at Roubini’s RBG Capital and a protege of economic professor Nouriel Roubini:
“We’re heading into a world of inflation because we are highly indebted and we are indebted here in the US economy in the household sector and in the financial sector…It’s going to be inflation everywhere and it’s going to happen really through the weakness of the US dollar…Then inflation in those other parts of the world that are expecting appreciating currencies, they’re going to inflate as well because that’s the way you ultimately correct this [economic slowdown].”
Motianey asserts that this inflation is required to avoid the apparently worse alternative of deflation.