Bill, I just have to add that bad inflation, the raising of tariffs, would have cost Americans. But the good inflation of prosperity is never allowed. You may be interested in the chart that shows how the Fed prunes wages in an article I just shared. I agree with you that we should be patient with China, as it is our biggest customer base, and industry from China will move back to the US. And new industry from China will likely come here too. Anyway here is the chart. The Fed is good at taking the economy down, but it creates an asymmetry: www.talkmarkets.com/.../stock-markets-fear-the-fed-more-than-war

If the Fed were serious about allowing inflation, wages would be higher. But allowing inflation would hurt all this bonds-as-collateral scheme. So, the Fed cares more about the bonds than about Americans making a decent wages. And this started way before NAFTA. Nice read, Bill.

The BOE has striven to help small and medium businesses, something that our Fed does not do. Therefore, the BOE will surely lessen the impact of pound weakness more than the Fed would ever help the US citizen with dollar weakness.

Besides being long, this is a very perplexing article I do not know if the author realizes that he believed Brexit was a win for the UK at the beginning of the article and then became a lose lose situation for the UK at the end of the article. Maybe that is why I try to shorten my articles so that I remember what I already said. Lars Christensen pointed out that if you are tied to the Euro you are tied to no growth. If you are no longer tethered to the Euro, you will grow. And besides, the UK is not Trump. Trump doesn't want free trade, unless he comes to his senses. The UK will support free trade with the rest of the world. Besides, the square mile will not be hurt that much according to other studies.

True, and those things are getting worse for workers. But I think Yglesias's idea is a strong one because the decline began so long ago, way before the free trade agreements. But my main point, of course, is that no matter where we are with wages, the upticks at any given time for wages are punished by recession. And we are vulnerable to that happening again, fairly soon, I think.

This article sounds like an advertisement for an inflation that may not be growth driven. If inflation is due to commodity scarcity, that is a tax on most people, not growth.

The 10 year has not even passed the 2013 tantrum level in yield.

Tim, your article is a must read article. I hope the numbers are right. I think Jeffrey P Snider would say more dollars could come back to the US if the Fed did a better job. Also, it seems that Trump wants to destroy tourism, and that is the only caveat. He needs to read this article. But because the dollar is the reserve currency, this sort of balance is achieved and can be improved on: www.talkmarkets.com/.../henry-kissinger-schools-mercantilist-trump-about-reserve-currency

In 2007, according to McClatchy, the Saudis warned America that the investment banks were hoarding contracts and spiking oil prices to 147 or so per barrel. Unfortunately, we would not have found out about this warning without Wikileaks. It is a sad time in America where we have to rely on Wikileaks to find out the cheating that high finance has brought to our shores.

Bonds are scarce. Some people would rather have 90 cents tomorrow and a bond today, rather than a dollar today without the bond. So I don't think you are right, Mish. At the end of the following article, Stephen Williamson, VP of the St Louis Fed said this: "For example, in this paper, if safe collateral is scarce, a reduction in the nominal interest rate also reduces the real interest rate - permanently. That's because the open market operation that reduces the nominal interest rate is a purchase of good collateral (same effect under a floor system with reserves outstanding)." www.talkmarkets.com/.../scott-sumners-15-minute-macroeconomics-lesson