The CPI inflation data last week came in at a new high of 8.6% on June 10 “officially”, reaching another 40-year high. However, we know that true inflation is actually about twice that high. Everything reported nowadays is fake, false, and outright lies now a days.
Analysts continue to tell gullible investors we are near “peak inflation” and that it will decline from here. They are either dumb or intentionally dishonest.
They tell us that the Fed Funds rate will go to 3-3.5% next year. But they have no idea how wrong they will be.
As the CPI reached new 40-year high, the markets plunged that day and continued to plunge the following days. “Friends and family” of the insiders probably got the statistics the prior day, because that is when the market plunge actually started.
For some reason, members of Congress are very successful investors. Could that be considered insider trading?
FED’S MONUMENTAL MISTAKE: The Fed once again has made big mistakes. Committee decisions are usually wrong. Aside from the fact that their economic education was terribly faulty, they also must please their masters, the high up politicians, while trying to fulfill their official mandates of full employment, avoiding recessions, and avoiding high inflation.
Economists and Fed officials say that the “neutral” Fed funds rate is 2.5%. How can that even be close to the real target? Real interest rates must be above the rate of inflation to make the cost of money a true cost, not “free money.”
The Federal Reserve is so far behind, one must wonder if they are deaf, dumb, blind, or perhaps never read any financial history. Or is it all to fulfil some other agenda?
In March 1980, the CPI year-over-year inflation rate hit a record 14.8%. The latest reading from last week (June 10th) showed the CPI rising to 8.6%. This shows the Fed has a long way to go to get above the rate of inflation, especially the “true rate”, which according to Dr. John Williams is 16.1%.
When we forecasted in our Wellington Letter in 1979 that the
These rate increases can only be helped with folks pulling back so everything in the economy can reset.
However things are not regular and have not been for many years. Nation divided, feelings more important and facts, media pushes (both ways) congress and state/local officials fighting. Zero compromise and those with $$$ are buying everything AND paying those 300 400 500 and 600 a night motel hotel rates. There is no slow down when only a few do it and other had been painfully doing it.
The stim hurt more than helped us long term.
Something unfortunate will need to happen to maybe have a reset. 1920s come to mind….or 1941 (entrance into WWII), 1965 (entrance into Vietnam), 2003 (entrance to kuwait, iraq, iran, Afghanistan) and now Ukraine. Yes we are involved over there but the Johnny Depps and Jan 6th crap has our attention.