Inflation comes finally in US, fueled by fiscal stimulus.

** How the additional money is deployed in circulation determines how it works.
** Universal income is a more efficient and fair way to deploy money in circulation than purchasing junk bonds is.

Our model indicates that it is primarily the fiscal stimulus to bring the expected appreciation in the price of goods and services in US. The inflation is welcome but it also causes a concern on Fed's discontinuing the purchasing of debts, an key operation that has push bond yields down, since more stimulus will certainly accelerate this appreciation. The low bond yield, as the benchmark, has kept pressing the required return rate for equity and other assets and thus helped push up the asset's price.

Apparently, the stock market, especially high multiple stocks, can not afford the tightening of QE, while the value stocks will find supports by potential increase in earning under the inflation.

Beyond building a unique industrial segmentation model, RFQ focuses on tracing printed money in circulation. Our recent model indicates that, if we have to keep additional money in circulation, universal income provides a good option for the policy makers given that they can balance interest between the poor and their donators.