Tim Duy´s prophecies

Prophecy #5:

5.) Inflation will accelerate. I think 2016 will be the year that economic resources become sufficiently scarce to push inflation back to the Fed’s target. I know this may seem like a wildly optimistic call given the persistence of low inflation during this cycle.

I would say TD is very optimistic!

Prophecies_1

My question: How can resources become “sufficiently scarce” if nominal spending growth is going down?

Prophecies_2

That´s another example of the “hare chasing the fox”, meaning it is “potential output” that is in pursuit of actual output!

Fox & Hare_2

 

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