Danielle DiMartino Booth is the founder of Money Strong, LLC, an economic consulting firm. Booth spent nine years as an adviser to Richard Fisher at the Federal Reserve Bank of Dallas. She began her career in New York at Donaldson, Lufkin & Jenrette and Credit Suisse, where she worked fixed income and the public and private equity market.
Danielle Booth says, along with a “bond market debacle,” the world will see inflation right along with it. Booth explains, “Look at lumber prices, look at the cost of packaging, plastics, raw materials, the producer price index . . . is at a six year high right now. It’s called the mother of all margin squeezes. Companies are suffering. We have inflation. We have very real inflation, and it is hitting corporate America between the eyes. We have seen inflation happening, and we continue to see it happening . . . Rental inflation is off the scale. . . . Inflation is up for 2018, and it has been up. We can have deflation and inflation at the same time. If all of this debt that has built up, especially for households, if they are allocating more of their income to servicing debt, then they have fewer dollars to spend on other things. So, you are going to have deflation and inflation at the same time.”