Shervin Pishevar says that inflation has been successfully shunted elsewhere, but won’t last

Shervin Pishevar is one of the most widely followed venture capitalists in the world of tech. He is the founder and CEO of Investment company as well as a prolific entrepreneur, having founded companies ranging from Social Gaming Network to Ionside and WebOS. He was also instrumental in the early formation of Uber, Airbnb and Virgin Hyperloop, providing critical financing on those projects that enabled them to get off the ground.

But it is in the realm of social media that Shervin Pishevar has perhaps gained the widest following. His Twitter feed is trafficked by more than 100,000 regular followers, and he commands the attention of some of the most influential people in the nation’s tech economy as well as throughout fields like economics and politics.

In a recent tweet storm, Shervin Pishevar laid out a number of cogent arguments regarding the state of real inflation that the long expansionary monetary policies of the United States have created. Shervin Pishevar says that, even discounting the considerable manipulation of primary inflation statistics like the Consumer Price Index, real inflation has not been anywhere near as low as the powers that be would like the U.S. populace to believe.

Instead, Shervin Pishevar argues that inflation has run off into historically unusual channels this time around. One of the areas in which inflation has become apparent is throughout virtually every asset class. In the stock market, this asset inflation is perhaps the most apparent. The flooding of the market with easy credit, says Pishevar, has created an unprecedented bull market in equities. At the same time, he says, ultra-low interest rates have inflated an arguable bubble in the housing market throughout many regions of the United States.

The housing market bubble is among the most serious for average Americans because it represents a form of asset inflation that affects absolutely everyone, in particular, renters. As housing prices have soared throughout much of the United States, rents have shot through the roof. This is not always accurately reflected in official inflation statistics, says Pishevar. And this is by design.

But people who are paying twice as much for rent as they were six years ago are sure noticing it.
http://www.pishevar.com/publications/