real inflation has been raging, purchasing power diminishing, pension plan funds being systematically starved, expect a dollar dump by foreign holders, new tax laws and new strings attached, Still not sure why we have to bail out fraudster bankers, bailouts will only help banks to continue to fleece the public.
Well, don’t look now, but meaningful, relevant inflation is already upon us — and has been for some time — not just here in the U.S., but all around the world.
It shouldn’t come as a surprise either. After all, it’s the Fed’s explicit goal. And what else would you expect when the nation’s money supply (M-2) has grown by 410% since 2000 — and $3.7 trillion, or 24%, in 2020 alone?
As 2020 came to a brutal end, an unequal K-shaped recovery was interrupted as the pandemic raged on while the government belatedly enacted an incomplete stimulus/relief package.
First off, what is inflation? We all recognize it as increasing prices when we buy things. The spinner heads will tell you that no, according to the dictionary, inflation is an increase in the money supply. So let me ask, do we have the dictionary description of what inflation is? Let’s see:
Normally characterized by slow, steady growth, the U.S. money supply has grown 20% from $15.33 trillion at the end of 2019 to $18.3 trillion at the end of July.
Well dang! It looks to me like there’s been a quite hefty increase in the money supply, what says you? You agree?
Last March, in 2020 “they” decided that in a year, they would end the “SLR” program. What’s that you ask? Policy manipulation that gave banks more latitude on what they could hold, reserve requirements, etc.
Once again, it’s time to keep our keen eyes on the target — gold’s and silver’s long-term price appreciation.
With inflation on the rise (you decide whether it’s temporary or ongoing), keeping real interest rates ultra-low, these metals are poised for a ride to the moon and beyond.
I’m going to hop around a bit here today, so try and follow the plot I’m laying out. First off, if you follow markets, you know that this week the PPI and CPI both came in blazing hot.
What’s it all mean? Are we at an inflection point in market land now, and the big bull market is over? Probably not just yet. That said, Quad hangovers can indeed extend several days, as traders reposition and rethink their futures roll outs. But make no mistake, the Fed’s statements, along with Bullard’s opinion, has changed the narrative some. We might see a much more volatile next two weeks as they try and square up all of this. Caution is warranted.
Just six months ago, participants in a monthly survey conducted by too-big-to-fail Deutsche Bank were asked, “[What] do you think are the biggest risks to global financial markets in 2021?”
There is no economy. There is however, trillions in Fed/Government money keeping the plates in the air. So let’s talk about inflation, the so called economy, and what’s really going on.
For millions of us, September 11, only has one meaning. But there’s a few people that like to celebrate a birthday on 9/11 and the birthday I’m speaking of was a woman named Mary Elizabeth Lease.
Buy your holiday gifts now.
That’s the message from retail executives, who are warning that both shoppers and investors should brace for a challenging holiday season.
Don’t look now, but the economic recovery, rebound or whatever you want to call it has stalled.
It’s not exactly drowning in quicksand (at least not yet), but it’s definitely mired in pools of thickening sludge.
The U.S. reported disappointing job growth for the second straight month and for the third time in six months.
Just 194,000 nonfarm jobs were added to what has got to be characterized as an restless economy in September — a significantly slower pace than the 366,000 number a month earlier.
Economists had been expecting to reach at least 500,000 this time around.
Wednesday’s article listed a handful of reasons why the coming months could be opportunistic for gold. Add one more to that list…
Investors are beginning to worry about stagflation — a combination of lower growth and higher inflation — which hasn't been a thing since the early 1980s.
But too big to fail Goldman Sachs reported today that "stagflation" was the most common word in client conversations last week as equity market volatility remains elevated.
This week, their clients are focused on the risks posed to growth by supply chain challenges and rising energy costs.
Corporate America is shelling out higher wages to employees, and business executives expect to continue doing so.
According to its new quarterly survey released today by the National Association of Business Economists, a record high 58% say they increased pay at their companies during the 3rd quarter.
Just about the same number expects that trend to continue in the months ahead.
Inflation came in like a hot potato last month.
At 6.2% for all items, virtually no economist wants to touch it, politicians just want to play the blame game, and few everyday Americans see a silver lining.
There are always a ton of ways to slice and dice inflation, including what it actually is and the best way to measure it.
Market bull Phil Orlando believes the Fed will raise interest rates six times over the next two years to reign in significant ongoing consumer price increases.
Last week he said, “…we will see two quarter-point rate hikes…in the second half of [2022], and perhaps another four quarter-point rate hikes over the course of [2023].”
In other words, Orlando and his firm, Fidelity Hermes, see the Fed Funds rate rising from its current 0% to 0.25% range to 1.75% to 2.0% two years from now.
Jerome Powell and his colleagues at the Fed are getting advice from a new generation of college students; maybe that’s a group they’ll listen to.
They’re telling them to speed up the tapering, enhance communications with the public and finish their study on digital currency.
For a few minutes every semester or two, the students act as Fed officials and compete to pitch staffers the best direction for the economy.
Never mind the Wall Streeters. Here’s a fresh look from the next generation policymakers.
The next official government release on inflation comes Friday, as a nation of number watchers try to figure out the mixed signals sent by last week’s confusing jobs report.
Americans of all ilk — from the White House, members of Congress and Federal Reserve policymakers to mega corporations, small businesses and everyday households — are focused on persistent price gains and how they’re impacting families and the economy.
A new poll is the latest sign that job numbers are pretty strong and the stock market may be at an all-time high.
Yet, Americans are overwhelmingly grading the economy by the price they see on the shelves.
Prices paid haven't always been the top indicator of choice. When YouGov asked the question in August 2020, 44% picked the unemployment rate compared to 25% who chose inflation.
Bottom line, in the latest Economist/You Gov poll, a majority of Americans (53%) say the economy is getting worse — one point lower than the highest level of the Biden presidency, last month.