| From the Desk of Don Yocham:
Tracking the Speed of Money
You can tease a lot of information out of security prices.
Stock options tell you how much volatility the market expects from equity markets over the coming months. You can tease anticipated Federal Reserve interest rate hikes or cuts from Eurodollar futures. And comparing prices across bonds lets you gauge the fear of corporate defaults, mortgage prepayments, and, as I showed you Wednesday, inflation.
That inflation gauge exceeds 3% as of this morning.
At that pace, it takes 24 years to see consumer goods prices double. A high level for sure – the highest so far this century and enough to meaningfully eat into your paycheck. Though not nearly enough to turn dollar bills into kindling.
For that, you need hyper-inflation – a runaway, self-feeding dynamic that can double prices every one to two months… or less.
It's Mach Speed Money. And to see that coming, you need to keep your eye on the speedometer. | 
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