Debt Levels And Foreclosures Creating Growing Inflation

<p>The markets and economists see inflation as transitory, due to temporary supply and labour issues.</p> <p>But the team of analysts at Thirty Capital sees a deeper, more serious problem, with inflation set to increase towards the end of the year.</p> <p>Says Thirty Capital CEO Rob Finlay: "We called it earlier. I'm seeing 2% or 2.25%. That’s where I'm putting my forecast."</p> <p>Analyst Bryan Kern says the market hasn’t responded to inflation numbers. "Rates stayed right where they were. That shows that the market believes this inflation to be transitory and due to temporary supply and labor issues."</p> <p>Bryan predicts rates will be range-bound for the foreseeable future, sitting between 1.50% and 1.70%, at least until the Fed begins tapering later in the year.</p> <p>FED CANNOT CONTROL INFLATION</p> <p>Analyst Jay Saunders expresses concern around the Fed seemingly believing that it can turn inflation on or off with the flick of a switch.</p> <p>"Clearly, history says it can't, and they have very little control over inflation," says Jay.  "They have a very high bar when it comes to employment if they're trying to get  close to pre-COVID employment numbers. That's not going to happen quickly, even with the service sector opening back up again."</p> <p>Jay notes that while everyone knows that the Fed liftoff is the most important number for the economy, most economists are struggling to get a grip on what's going on, particularly as the economy starts to transition away from a goods space back to a service-based economy as people return to work.</p> <p>IN TIMES OF UNCERTAINTY FOCUS ON OPTIMIZING DEPT</p> <p>Says Rob: "Right now in periods of uncertainty, it's time to optimize debt. I still personally think that the market is not nearly as strong as what some indications are. I'm very, very, very nervous about the third and fourth quarters."</p> <p>Rob continues: "People are just stocking up on goods and services, which will increase inflation. But the thing is, there is $35 billion of rent that people have n