The European Central Bank wants inflation. The Bank of Japan wants inflation. The Federal Reserve wants inflation. Yet, for every single new dollar of stimulus created out of thin air to try to force reflation into the system, there's an app for that.

There are three main sources of structural deflation that are decades in the making. The first is demographics. As baby boomers age, leave the workforce, and focus more on divesting as opposed to investing, demand for products and services outside of health care declines. A reduction in demand-pull inflation suppresses the velocity of money, and in turn holds inflation down.

The second source of structural deflation is the wealth gap between rich and poor. The continued destruction of the middle and concentration of wealth by those at the top of the food chain relative to everybody else in society counters Fed action. After all, if the pure, raw number of people in society have less money, the velocity of money can't really pick up meaningfully.

The third structural source of deflation is technology, and this is where Uber comes in to play. Personally, I'm a huge fan of the service, convenience, and cost of hailing a car to get to meetings and outsource my own driving. With a valuation that puts the company at about $18 billion, clearly many agree.

“ "Success is getting what you want. Happiness is wanting what you get." ” — —Dale Carnegie

Uber is disruptive to the taxi and limousine industry in many ways, with some arguing that the ultimate direction for the company will be driver-less cars that can create trips on demand, reduce cars on the road, and ultimately eliminate driver jobs over time. There appears to be little that can stop such a potential trend. Recent strikes in London by drivers protesting the unfairness of Uber ended up backfiring, as sign-ups to Uber surged.

This brings us to why the Fed is afraid of Uber. As the company (and similar entities) become part of our daily routine, a whole class of workers likely disappears if the ultimate direction is to automate driving. Don't get me wrong. Technology and cost-saving, combined with higher efficiency, is a big positive for the economy longer term, but technology is inherently deflationary as human labor gets replaced.

I've always been struck watching how Tesla TSLA, +4.42% constructs cars, and noting how the entire process is largely controlled by computers in an automated fashion. Downward pricing pressure, combined with fewer drivers and more unemployed over time are completely counter to the Fed's dual mandate.

The Fed can't paper over that. While the Fed wants an inflation target greater than 2%, we must all ask ourselves why after trillions of dollars it isn't happening. The answer must lie in the market's changing perceptions of what inflation going forward is likely to be as companies like Uber become a part of our routine worldwide.

Take a look below at the price ratio of the iShares Barclays TIPS Bond Fund ETF TIP, -0.08% relative to the iShares Barclays 7-10 Year Bond Fund ETF IEF, -0.08% . As a reminder, a rising price ratio means the numerator/TIP is outperforming (up more/down less) the denominator/IEF. For a larger chart, please click here.

Why is it that inflation expectations just aren't moving despite trillions of dollars of stimulus? The answer likely is because the longer-term inflation rate on average is expected to be lower than most want to believe. This, in turn, likely makes interest-rate normalization a function of their being a new average level that is lower than what history would otherwise suggest. For the Federal Reserve, which is desperate to reverse deflationary pressure, this means rates may never really get to their historical level, further negatively impacting savers.

For traders and investors, this simply means that the economy may continue to teeter on the inflation/deflation line. A tipping over into deflation means buy and hold investing likely will suffer the same kinds of challenges Japan endured for over two decades in the S&P 500 SPY, -1.15% .

This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Pension Partners, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Pension Partners, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.