The central banks of the U.S., the Euro-zone, and Japan have been printing additional currency with enthusiasm. Usually, more money chasing the same level of goods results in the price of those goods (inflation) going higher. Yet inflation has hardly made a showing; why not?
The problem is that the new dollars have not trickled down to the consumers that would spend them broadly. Instead the new dollars have gone to banks and those that have the financial clout to borrow and use this additional liquidity; mostly already wealthy institutions and individuals. So where is the inflation? It is in the things that these participants spend money.
There is inflation; it is in assets like stocks, bonds, high value real estate, traded art works, mega-yachts etc. You would think this spending would eventually affect lower classes of goods, but the trickle down has been very slow. It may eventually happen, but it is taking a lot longer than expected.
The Lonely Bull