Monster Bear Flattener AheadHistorically - inflation has never been defeated except when a long term bond (in this case the 30 year) yield is above the rate of inflation. The collapse of supply has meant too much money chasing too few goods. This means more and more capital is sucked into a blackhole of wage-price spirals. Currently the US has trapped itself against a wall and a hard place in that the 30 year treasury yield is well below the inflation rate. A situation which hasn't happened to the US in 100+ years (I can't speak for the Civil War Era, I haven't found data back that far). You can see the 30 year yield history by searching Google for "Fred 30 year yield" (Can't post links yet).
The only logical path to achieve this is a bear steepening when people realize that inflation cannot come down otherwise and then begin a sell-off.
Yield curves will stay inverted since the FED has put a floor on interest rates which the treasuries are already starting to get close to.
"Restrictive rates" = = a bear flattening environment. We are currently in a "bull steepener" attempt which will fail.
