So, will it be stagflation after all? It is already clear that inflation has entered the financial system. Those who claim that this cannot be true because Treasury bonds aren’t showing it fail to mention that Treasury bonds are the most manipulated asset class on the planet. After all, it’s rather difficult to argue that Treasury bonds can discount or measure much of anything when the Fed is spending over $1 trillion buying them every year. Technically, all they are reflecting is what $1 trillion worth of Fed asset purchases can get you in terms of manipulation. Meanwhile, we are getting signs of inflation everywhere.