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It's not the inflation component which is killing real personal income (ex transfer receipts)...it's the bad modelling which is used to generate current estimates that are subject to revisions.

The revisions show the real picture, and it is not pretty.

See https://alhambrapartners.com/2021/07/30/inflation-estimates-...

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Am I the only one that can't read that blog post? It's seems stream of consciousness and odd grammar that throws me off.

And the bio of the author doesn't engender much confidence: "He is not an economist, which is probably why he's been able to develop a working model of the global monetary system. His research is unique and informative in ways an economist would never consider."

Assuming this blog post is correct, what would a smart response be from an investor point of view?

Most likely to get out of the US stock and housing market. Stop borrowing money, reduce leverage, etc. If you like risk then short the most bubbly companies around.

I would argue fixed rate debt is your best friend in a high inflation scenario. With the cash being reinvested in staples type stocks (food and basics)

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