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Posts Tagged ‘inflation’

No, Sen. Warren, Greed Is Not Causing Inflation | Mises Wire

Posted by M. C. on December 21, 2021

If evil corporations are to blame for rising prices in 2021, as Elizabeth Warren says, I imagine that they were magnanimous and generous corporations when there was low or no inflation, right?

https://mises.org/wire/no-sen-warren-greed-not-causing-inflation

Daniel Lacalle

Senator Elizabeth Warren recently stated that rising prices were due to corporations increasing their profits. “This isn’t about inflation, this is about price gouging for these guys.” It is simply incorrect.

No, corporations have not doubled their profits, and rising prices are not due to the evildoings of businesses. If evil corporations are to blame for rising prices in 2021, as Elizabeth Warren says, I imagine that they were magnanimous and generous corporations when there was low or no inflation, right?

Inflation is the tax of the poor. It destroys the purchasing power of wages and engulfs the little savings that workers accumulate. The rich can protect themselves by investing in real assets, real estate and financial, the poor cannot.

Inflation is not a coincidence, it is a policy.

The middle class and the salaried workers not only do not see the advantages of inflation, but they also lose in real wages and also in their future prospects. Robert J. Barro’s study in more than one hundred countries shows that an average 10 percent increase in inflation during one year reduces growth by 0.2–0.3 percent and investment from 0.4 percent to 0.6 percent in the next year. The problem is that the damage is entrenched. Even if the impact on gross domestic product is apparently small, the negative effect on both growth and investment remains for several years.

Despite the message from central banks, which repeat that inflation has temporary components and is fundamentally transitory, we cannot forget:

Inflation will not go down in 2022, according to central banks. Inflation will go up less in 2022 than in 2021. It is not the same.

When some agents speak of “transitory” inflation, they mean that it will rise less in 2022 than in 2021, not that prices will fall.

“Transitory inflation” is 6 percent in 2021, 3 percent in 2022, and 2.5 percent in 2023. That is, more than a 12 percent increase in three years. How many of you are going to see your wages and earnings rise 12 percent in three years?

The great beneficiary of inflation is the government, and Ms. Warren knows it. That is why she defends inflationary monetary and fiscal policies. On the one hand, receipts from the monetary taxes of captive economic agents increases (value-added tax, personal income tax, corporate taxes, indirect taxes), and on the other hand, the government’s accumulated debt is partially “devalued.” But public accounts do not improve because gross domestic product slows down; the structural deficit remains high and, therefore, absolute debt does not fall.

How many of you are going to raise your salary 12 percent in three years?

Deficit-spending governments see real expenditures go up and the structural deficit does not fall.

Wages and pensions do not rise with inflation. Almost no one will see a 12 percent rise in three years in their work compensation. Real median wages in the United States have plummeted due to inflation, according to St. Louis Fed data.

Inflation is not the Consumer Price Index (CPI). Inflation is the loss of purchasing power of the currency that leads to a persistent rise in most prices regardless of their sector, demand, supply, or nature, and is a direct consequence of the wrongly termed expansionary monetary policy. Inflation is a direct cause of currency debasement.

CPI is a basic basket calculated with estimated weights between goods and services. In it there are prices of nonreplicable basic products that rise much more than the average and that we consume every day (food, energy) and the basket is moderated with services and goods that we do not consume every day (technology, leisure).

dlc

Prices do not rise in tandem by 2–5 percent because of a coordinated decision from all businesses in all sectors. It is a monetary phenomenon.

The good thing for the most interventionist politician is that the government is the most benefited by the rise in prices but it can blame others and, on top of that, present itself as a solution by making payments in increasingly useless paper currency.

See the rest here

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Biden Holds a Losing Hand – LewRockwell LewRockwell.com

Posted by M. C. on December 18, 2021

And should he survive those primaries, as some of those presidents did, Biden would be the favorite to lose in 2024. For none of those presidents won reelection.

https://www.lewrockwell.com/2021/12/patrick-j-buchanan/biden-holds-a-losing-hand/

By Patrick J. Buchanan

As President Joe Biden’s poll numbers sank this fall, and the presidentially ambitious in his party began to stir, the White House put out the word.

Forget all that 2020 campaign chatter about Biden being a “transitional president.” He intends to run and win a second term.

Well, perhaps. Yet, skepticism abounds.

First, if Biden ran in 2024 and won, his second term would extend to January 2029, when he would be 86 years old. He is already, at 79, the oldest president in history. Does Biden look like a signal-calling quarterback with seven years of playing days ahead of him?

When one views his diminished mental capacities and the issues menu before him, it seems a certainty that we are not looking at a two-term president.

First, there is the pandemic.

With the death toll now exceeding 800,000, and the number of COVID-19 cases reaching 50 million, more Americans have died of the coronavirus under Biden than under former President Donald Trump. Over 1,000 Americans are being daily added to the death toll.

In a New York Post poll, approval of Biden’s handling of the pandemic has already fallen from 69% on Inauguration Day to 53% today.

Another menu item is the economic crisis induced by the pandemic.

Inflation under Biden has soared to 6.8%, and at the Federal Reserve, there is talk of three interest rate hikes in 2022.

What does this mean? Not only are the prices of gasoline and groceries rising beyond the capacity of millions of families to pay, but for every $100,000 in cash savings of every Middle American family, nearly $7,000 will have been wiped out in Biden’s first year.

And the Biden inflation is no longer spoken of as “transitory.”

For his handling of inflation, Biden has an approval rating of 28%, with two-thirds of all Americans, 69%, disapproving of the job he is doing.

On the crime front, our major cities are now setting new records for shootings, stabbings, homicides and murders. Cable and TV news carry regular videos of “flash mobs” invading and looting downtown stores and fleeing before the police arrive.

In Biden’s America, civilization itself seems to be breaking down.

How do the American people think Biden is handling crime?

As a Delaware senator in the 1990s, Biden was seen as a law-and-order Democrat who helped enact some of the toughest anti-crime and pro-cop legislation of the decade.

Yet, today, when even San Francisco’s Nancy Pelosi is decrying the “smash-and-grab” mob attacks on her city’s retail stores as reflecting an “attitude of lawlessness,” 3 in 5 Americans, 61%, disapprove of how Biden is handling the crime issue.

On taking office, Biden discarded the Trump immigration policies that had held back the flood of illegal migrants into the country.

Now the southern border is bleeding as never before.

In Biden’s first year, migrants have been crossing at a rate of close to 2 million a year. Scores of thousands of “got-aways” — unknown homeland invaders who evade any contact with U.S. authorities — have vanished into our population since Biden took office.

And they are coming now not only from Mexico and the Northern Triangle — Honduras, Guatemala, El Salvador. They are coming from every continent and every country on earth. We are becoming what President Teddy Roosevelt warned America would become if it failed to manage its immigration well — “a polyglot boarding house for the world.”

“The first panacea for a mismanaged nation is inflation of the currency; the second is war,” said Ernest Hemingway. “Both bring a temporary prosperity; both bring a permanent ruin.”

Biden is going to have to negotiate a modus vivendi with Russia on Ukraine and China on Taiwan, after a Beijing-Moscow summit where Chinese President Xi Jinping declared that the two countries have established a relationship that “in its closeness and effectiveness … even exceeds an alliance.”

Eleven months from now, Biden faces congressional elections. Almost surely, they will cost him his majority in the House and leave him at year’s end an 80-year-old lame-duck president whose legislative agenda will have to meet with the approval of the new speaker, Kevin McCarthy.

So where will we and Biden be at New Year’s Eve 2023?

We will have an octogenarian president, in even more visible cognitive decline, faced with intractable issues of crime, a bleeding border, a pandemic and an inflation with which he has been unable to cope.

And, like William Howard Taft in 1912, Harry Truman in 1952, Lyndon Johnson in 1968, Gerald Ford in 1976, Jimmy Carter in 1980 and George H. W. Bush in 1992, Biden will, if he decides to run again, face a challenge in the Democratic primaries. Biden won’t get a pass.

And should he survive those primaries, as some of those presidents did, Biden would be the favorite to lose in 2024. For none of those presidents won reelection.

It may be time to consider a retirement announcement.

Patrick J. Buchanan is co-founder and editor of The American Conservative. He is also the author of Where the Right Went Wrong, and Churchill, Hitler, and the Unnecessary War. His latest book is Nixon’s White House Wars: The Battles That Made and Broke a President and Divided America Forever See his website.

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And Just Like That, Inflation Is About To Disappear? | ZeroHedge

Posted by M. C. on December 12, 2021

In any case, what we though this summer was just a joke appears to be coming true, because as the BLS has reported, starting next month it will adjust the weights for its Consumer Price Index basket, which will be calculated “based on consumer expenditure data from 2019-2020.” Alas, there is no further detail on this critical topic, although we will take any bet that post-revision reported inflation will drop because, well, “adjustments.”

https://www.zerohedge.com/markets/and-just-inflation-about-disappear

Tyler Durden's Photoby Tyler Durden

Earlier this year, when inflation was still “transitory” two Fed chairs, Powell and Bernanke, made comments which we joked only make sense if the definition of inflation is changed:

*POWELL:FOMC PREPARED TO ADJUST POLICY IF EXPECTATIONS GO BEYOND

by changing definition of PCE and CPI — zerohedge (@zerohedge) July 28, 2021

BERNANKE: COMMODITY PRICES WON’T ADD TO INFLATION GOING FORWARD

Why? Are we changing the definition of CPI again — zerohedge (@zerohedge) August 25, 2021

Sadly, our feeble attempts at humor were not unjustified, and as any economic history buff knows the US dramatically changed how it calculates consumer inflation back in the 1980s, an event extensively covered by AllianceBernstein former chief economist Joseph Carson on this website in the past (see “Consumer Price Inflation: Facts vs. Fiction“) with the most important difference being that while the CPI of the 1970s included house price inflation, the current measure does not. Instead, home price pressures have been swept in the purposefully nebulous Owner-Equivalent Rent which can be whatever politicians wants it to be (there have been other definitional changes, see here, here, here and here for more). Bottom line, however, is that if today’s CPI did include house prices in its measurement, the currently reported inflation numbers for house price inflation would push CPI (and core CPI) to double-digit gains.

Of course, it is politically inconvenient to report true inflation is – just see what happens in any banana republic where society is fed up with runaway inflation. It’s also why politicians on both sides of the aisle are always eager to tweak the definition of inflation ever so slightly (or not so slightly) so it appears to be less than it truly is. After all, for them masking reality is a matter of political survival.

In any case, what we though this summer was just a joke appears to be coming true, because as the BLS has reported, starting next month it will adjust the weights for its Consumer Price Index basket, which will be calculated “based on consumer expenditure data from 2019-2020.” Alas, there is no further detail on this critical topic, although we will take any bet that post-revision reported inflation will drop because, well, “adjustments.”

In the same press release, we also read that “the BLS considered interventions, but decided to maintain normal procedures”… whatever those are. Said otherwise, the BLS may not be “intervening” for now, but when the inflationary rubber hits the road next year with the midterms coming up fast and Dems ratings still in the dumps, we doubt that the BLS will have any qualms to “intervene.”

Incidentally, this “update” may explain the conviction behind Biden’s statement today: in a statement after the blistering hot CPI report came out…

… Joe Biden said that despite experiencing the most rapid inflation in almost 40 years in November, U.S. price increases are slowing, in particular for gasoline and cars.

“Today’s numbers reflect the pressures that economies around the world are facing as we emerge from a global pandemic — prices are rising… But developments in the weeks after these data were collected last month show that price and cost increase are slowing, although not as quickly as we’d like,” he said. Biden’s chief of staff Ronald Klain chimed in too:

We’ve made progress, but we’ve got to get prices down, and people have to feel the progress at their kitchen tables.https://t.co/YH102YVlQp — Ronald Klain (@WHCOS) December 10, 2021

Well, all that prices needs to slow “as quickly as we’d like” at least in government reports such as the CPI, is for the BLS to give them a gentle nudge lower.

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No, Inflation Is Not Good for You | Mises Wire

Posted by M. C. on November 23, 2021

Whatever temporary gains many workers are experiencing with higher wages, the euphoria is not likely to last long. Furthermore, one doubts that this current bout of inflation is as temporary as Paul Krugman recently claimed. The US economy more and more seems to be running on empty and this means that monetary authorities are going to pump even more new money into the system. Don’t count on this being a windfall for anyone but the wealthiest among us.

https://mises.org/wire/no-inflation-not-good-you

William L. Anderson

With the recent rise in inflation—with subsequent increases in both consumer and producer price levels—one suspects that sooner or later people on the left either would downplay it or find a way to spin the bad news into something positive like an alchemist would want to spin straw into gold. Both accounts have arrived, thanks to the New York Times and the hard-left publication, The Intercept.

The various accounts in the Times hardly are surprising, given the link the paper has to the nation’s political, economic, and academic elites, and given that these are the people that have created the inflation problem in the first place. Not surprisingly, the NYT “experts” (because progressives believe that the “experts” always have the right answers) are playing down the latest spikes as temporary and related to current issues of supply and demand, not any unprecedented increases in the nation’s money supply.

We should not be surprised that the NYT’s resident economic “expert,” Paul Krugman, has debunked any worries of inflation and especially inflation over the long term, instead likening the current price spikes to what happened after World War II ended and the economy moved from one dedicated to total war to one producing capital and consumption goods. Likewise, President Joe Biden is touting an endorsement of his “Build Back Better” initiatives by a number of Nobel economics winners who have claimed the proposed programs included in the legislation would reduce inflation. (One should not forget that while Krugman is a Nobel recipient, his NYT columns go well beyond any economic analysis, establishing him as little more than a partisan political shill.)

There is an important point to be made here: all of these “experts” are willing to say they believe inflation is a problem for most people and the disagreement isn’t so much about the real and potential harm inflation brings, but rather the duration of the current spikes. However, there also exists among radical progressives a belief that inflation actually is a good thing because, in their minds, it transfers wealth from the rich to the poor.

The first time I saw this theme was in an article by the Marxist journalist Alexander Cockburn, who at one time had a regular column in the Wall Street Journal. Writing about the alleged “Hitler Diaries” supposedly unearthed in the early 1980s (and later exposed as forgeries), Cockburn said if one actually could mine Hitler’s thoughts, they would find that he didn’t see the hyperinflation that ravaged Germany in the 1920s as any kind of a threat, and that it actually was good for the economy. (I’m writing from memories, as I have not been able find this column in the WSJ archives.)

See the rest here

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Looks Like Joe Biden Just Lost The New York Times – Issues & Insights

Posted by M. C. on November 18, 2021

Who is to blame? Every president and congress since the Federal reserve was formed in 1913.

https://issuesinsights.com/2021/11/17/looks-like-joe-biden-just-lost-the-new-york-times/

I & I Editorial Board

His crumbling public approval rating must be troubling to President Joe Biden. But can it possibly compare to learning that the liberal mainstream media is turning on him as well?

On Tuesday, the New York Times sent an email to its morning update subscribers with the headline: “Who’s to blame for inflation?”

“It is dragging down President Biden’s approval ratings and fueling discontent among Americans,” writes senior economics correspondent Neil Irwin. “How did we get here? Who is to blame?”

We fully expected the Times to make excuses for Biden. And at first, it looks as though that is what Irwin is going to do, writing that “presidents have less control over the economy than headlines might suggest.” But then he adds that “the current situation is an exception to the rule.”

And even more remarkable is what comes next. Irwin writes:

You can draw a direct line from a specific policy decision that Biden and congressional Democrats made this past winter to some of the inflation happening now.

In designing the stimulus that Congress passed in March, Biden’s administration went big, with $1.9 trillion in pandemic relief — on top of a separate $900 billion package that passed three months earlier. Put the two together, and $2.8 trillion in federal money has been coursing through the economy this year while economic activity has trended only a few hundred billion dollars a year short of what mainstream analysts would consider full health.

The fact that the Times, along with others in the mainstream media, admits that inflation is a problem is in itself a noteworthy development, since for months it insisted that it was just a data anomaly – one that Republicans were trying to exploit for political gain.

Now, with prices for many common household goods having gone up by double digits over the past few months and no end in sight for the trend, the inflation story is impossible to ignore. 

But the fact that any one of these “news” outlets is willing to blame Biden for the inflation spiral is a truly stunning development, given they’d spent months blasting out “fact checks” that aggressively slapped down any such claim.

In April, for example, a USA Today “fact check” told readers that COVID-19 was “to blame for spike in lumber prices, not Biden.” In June, it ran another saying that “Rising gas prices due to high demand and low supply, not Biden’s policies.”

The next month, AP declared that “House GOP falsely blames Biden for gas prices.”

When Republican Sen. Rick Scott stated in July that “Thanks to the insane tax-and-spending spree of President Joe Biden and Democrats in Washington, we are seeing six straight months of raging inflation,” the “fact checking” site PolitiFact labeled it “Mostly False.”

In August, CNN approvingly quoted the Democrats’ all-time favorite economist, Mark Zandi, as saying that “the jump in inflation has nothing to do with tax and spending policies.”

As is so often the case, the public was way ahead of the mainstream press on this one. A poll in June found that twice as many people blamed Biden as President Donald Trump for rising inflation.

It’s worth noting that the Times admission of Biden’s fault regarding inflation comes after CNN ran a piece exposing the growing antagonism between Biden and Vice President Kamala Harris. Which raises questions such as:

Why didn’t the New York Times editors “correct” Irwin’s story before it went out? Is it suddenly OK to run hit pieces on Biden, even if it risks helping Republicans? If so, what’s changed in the corporate newsrooms to allow such an infamia?

Now, bear in mind that we are not saying that the media has suddenly decided to do its job and cover the facts. As we pointed out yesterday, the mainstream press has racked up such an incredibly long list of false and misleading stories, all designed to help drive a leftist narrative, that it has pretty much lost all credibility outside crossword puzzles and TV listings.

But that makes this recent development at the New York Times even more astonishing. If the mainstream media lose faith in Biden, who will be left to defend him? Jimmy Carter?

— Written by the I&I Editorial Board

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‘Federal Reserve Failure’ – Ron Paul’s 15 Nov Column

Posted by M. C. on November 16, 2021

Of course, most Republicans will continue opposing big increases in spending and debt … as long as a Democrat sits in the Oval Office. A Republican who becomes president will likely believe, as Dick Cheney has said, that President Reagan taught us that deficits don’t matter. The difference between the parties is Republicans are less likely to raise taxes. So, no matter who controls Congress and the presidency, spending and debt can keep increasing.

https://mailchi.mp/ronpaulinstitute/fedfail?e=ff526b933a

Nov 15 – What do the Federal Reserve and neoconservatives have in common? They both refuse to admit that their policies — the neocons’ promotion of perpetual war and the Fed’s manipulation of the money supply — are complete failures, having produced the opposite of the promised results.

The latest example of the Federal Reserve engaging in Bill Kristol-like levels of denial is the Fed’s continued insistence that the return of 70s-style inflation is a “transitory” phenomenon resulting from the end of the lockdowns. The Fed has acknowledged the “transitory” inflation will last until at least 2022, yet it is still determined to keep interest rates at or near zero until the “jobs situation” improves.

To be fair, the Fed has finally announced plans to cut back on its money-pumping activities by reducing by 15 billion dollars a month its monthly purchase of 80 billion dollars of Treasury bonds and 40 billion dollars of mortgage-backed assets.

It is unlikely that the Fed will stick to its plans to “taper” its purchase of Treasury bonds. The Fed’s Treasury bond purchases enable the federal government to run up the debt without increasing taxes or paying punishingly high interest on the debt.

The Congressional Budget Office projects that by 2030 the federal debt interest cost will more than double to 829 billion dollars. That is more than the government spent on the military in 2020!

Despite the looming fiscal crisis, Congress is unlikely to cut spending anytime soon. Instead, Congress members are debating a 1.75 trillion dollars “social spending” plan, having just passed a 1.2 trillion dollars infrastructure bill. Contrary to the claims of President Biden and his allies, this new spending will not reduce inflation. What it will do is hasten and deepen the inevitable economic crisis caused by government overspending.

Of course, most Republicans will continue opposing big increases in spending and debt … as long as a Democrat sits in the Oval Office. A Republican who becomes president will likely believe, as Dick Cheney has said, that President Reagan taught us that deficits don’t matter. The difference between the parties is Republicans are less likely to raise taxes. So, no matter who controls Congress and the presidency, spending and debt can keep increasing.

The Fed may also take dramatic action to keep interest rates low if other purchasers of federal debt demand higher interest rates in anticipation of future inflation. Such a situation would be a sign of what Ludwig von Mises called a crack-up boom. A crack-up boom occurs when the public anticipates continuing devaluation of the currency, causing them to factor future price increases into their economic plans.

Crack-up booms are preceded or accompanied by economic crises that can lead to the rise of authoritarianism. However, this is not inevitable. Important steps can be taken including cutting spending on militarism and corporate welfare, phasing out the entitlement and welfare programs, and auditing and ending the Fed. Those of us who know the truth should seek to convince our fellow citizens of the importance of restoring a limited, constitutional government that does not try to run the economy, run the world, or run our lives.



Read more great articles on the Ron Paul Institute website.
Subscribe to free updates from the Ron Paul Institute.
Copyright © 2021 by Ron Paul Institute. Permission to reprint in whole or in part is gladly granted, provided full credit and a live link are given.

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Inflation Is Good for You

Posted by M. C. on November 16, 2021

What happened to The Intercept? I can see why it and Glenn Greenwald parted company.

It is true inflation is bad for those that own debt. That is because the money you make the payment with IS DECREASED IN VALUE. The author of this article does not do the family grocery shopping.

https://theintercept.com/2021/11/10/inflation-economy-debt-milk-prices/

…That’s because inflation is often good for most of us, but it’s terrible for the kinds of people who own corporate news outlets — or, say, founded coal firms…

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This Is How They Intend To Get Us To “You Will Own Nothing And Be Happy” | ZeroHedge

Posted by M. C. on November 16, 2021

Well, the truth is that they don’t need to take your stuff to implement their goals.

All they need to do is to destroy the value of your money.

If your money becomes worthless, you will start descending into poverty and it won’t be too long before you become totally dependent on the government.

https://www.zerohedge.com/energy/how-they-intend-get-us-you-will-own-nothing-and-be-happy

Authored by Michael Snyder via The Economic Collapse blog,

The pieces of the puzzle may fit together in ways that you do not expect.  For years, the global elite have been openly telling us that one day we will all own nothing, we will have no privacy, and we will be extremely happy with our new socialist utopia.  But exactly how do they intend to transition to such a society?  Are they going to come and take all of your stuff?  Needless to say, there are millions upon millions of very angry people out there that aren’t just going to hand over their stuff to a bunch of socialists.  So how are they going to overcome that obstacle?

Well, the truth is that they don’t need to take your stuff to implement their goals.

All they need to do is to destroy the value of your money.

If your money becomes worthless, you will start descending into poverty and it won’t be too long before you become totally dependent on the government.

And as the stuff that you have right now wears out, you won’t be able to replace it with the worthless money that you are now holding.

Eventually, you will own virtually nothing, but you probably won’t be very happy about it.

So high inflation is actually a tool that the global elite can use to further their goals.

The good news is that I do not believe that the global elite will ever be able to achieve their utopia.

The bad news is that they won’t be able to achieve their utopia because western society is going to completely and utterly collapse during the times that are ahead.

But for now, inflation is going to be one of the hottest political issues as we head into 2022.  On Friday, Vice-President Kamala Harris acknowledged that higher prices are having a huge impact on American families…

“Prices have gone up and families and individuals are dealing with the realities of the bread costs more, the gas costs more, and have to understand what that means,” she said. “That’s about the cost of living going up. That’s about having to stress and stretch limited resources.”

Harris said that is a “source of stress for families” that is “not only economic, but is, on a daily level, something that is a heavy weight to carry.”

Of course her “solution” is to get Joe Biden’s agenda through Congress, and she knows that all of that spending will inevitably create even more inflation.

The socialists over at NBC News are trying to help the Biden administration by putting a positive spin on the inflation crisis.  In fact, NBC’s Stephanie Ruhle is trying really hard to convince everyone that inflation is not a problem because we all have more money to spend these days.

But as I demonstrated last week, the truth is that inflation is rising much faster than our paychecks are, and that means that our standard of living is going down.

And inflation is one of the big reasons why the University of Michigan Consumer Sentiment Index just hit the lowest level since 2011

At the same time, the University of Michigan Consumer Sentiment Index tumbled to 66.8 for November, according to a preliminary reading Friday. That was the lowest since November 2011 and well below the Dow Jones estimate of 72.5. October’s reading was 71.7, meaning that the November level represented a 6.8% drop.

If you are among those that think that things are bad now, just wait, because they will soon get even worse.

At this point, even Neel Kashkari is publicly admitting that inflation is going to continue to rise in the months ahead…

Minneapolis Fed Chair Neel Kashkari on Sunday said inflation in the U.S. will likely see “higher readings” before numbers taper off, as Americans grapple with rising prices nationwide.

“The math suggests we’re probably going to see somewhat higher readings over the next few months before they likely start to taper off,” Kashkari said during an appearance on CBS’s “Face the Nation.”

The Federal Reserve has lost control, and 2022 is going to be a very “interesting” year from an economic standpoint.

On Sunday, we learned that the average price of a gallon of gasoline in California has almost reached five dollars

California gas prices hit an average of $4.676 Sunday, beating its previous record average price of $4.671 for regular gasoline set in October 2012, according to AAA.

Gasoline prices are going to continue to move higher, and that is really bad news.

Just about everything that we buy has to be transported, and so higher gasoline prices are going to fuel even more inflation.

Sadly, those that are on the bottom of the economic food chain are the ones that are being hurt the most.  At this point, many food banks are really struggling to purchase enough food because price hikes have become so severe

America’s largest food bank struggles to feed people amid a perfect storm of surging food prices and supply chain woes.

Katie Fitzgerald, COO of Feeding America, a nonprofit organization that operates more than 200 food banks across the country, told AP News that her network of food banks is already stretched thin due to the unprecedented demand spurred by the virus pandemic downturn in the economy last year. She warned that it has become more difficult for her organization to absorb food inflation, resulting in fewer families being fed this holiday season.

Used farm equipment is another area where inflation is hitting really hard.

According to one index, the price of used farm equipment was up 22 percent during the first nine months of 2021…

The index is up 22% in the first nine months of the year and poised to make its biggest gains yet in the fourth quarter, a boom that’s turning a normally quiet corner of the farming market into Exhibit A of the inflation surge coursing through the U.S. economy. The market has all the ingredients fueling inflation in industries like cars and TVs — soaring demand from cash-flush buyers, the semiconductor shortage, congested ports and rails — with the added irritant of the labor stoppage at the world’s largest farm-machine maker.

The match “is now lit,” Peterson says, “and it’s lit while there’s a John Deere strike.”

So many problems have converged all at once.

Some have used the term “a perfect storm” to describe what we are facing, and I think that is definitely quite appropriate.

If you are waiting for life to “get back to normal”, you are going to be waiting for a very long time.  As MN Gordon has noted, pre-2020 prices are now gone forever…

Pre-2020 prices, much like pre-1965 prices, are gone forever. Deficits of $5.9 trillion over the 24 months ending September 30, 2021, and a Fed balance sheet expansion of nearly $5 trillion over the same period, have irrevocably damaged the entire pricing structure of the financial system and the economy.

Price inflation is on the move. Reality can no longer be covered up with Washington’s lies. We expect this episode of inflation will be one for the history books.

I wish that I had better news for you.

I really do.

But sooner or later, this is what socialist regimes always do.

They tell us to study hard, get a good job and work as hard as we can.

And then they give our money to people that haven’t done any of those things.

Eventually they run out of other people’s money, and so then they just start wildly creating more.

Unfortunately, every time that this has been tried throughout history it has always ended in disaster, and now it is our turn.

*  *  *

It is finally here! Michael’s new book entitled “7 Year Apocalypse” is now available in paperback and for the Kindle on Amazon.

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We’re “Very Sorry” – Bank Of England Governor Apologizes To Brits For Crushing Their Standard Of Living | ZeroHedge

Posted by M. C. on November 9, 2021

“We’ve never seen a shock of this kind and the big thing we are seeing at the moment is the furlough scheme is coming off, there is going to be an increase in taxes on National Insurance [and] universal credit was just cut.

“So, the central bank really hasn’t a lot of clue what is going on.”

https://www.zerohedge.com/personal-finance/were-very-sorry-bank-england-governor-apologizes-brits-crushing-their-standard

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In an odd moment of truthful admission – that absolutely will not be heard in the US – The Bank of England governor has said he is “very sorry” that UK inflation is rising amid forecasts the cost of living could increase as much as 5%.Andrew Bailey told the BBC that households were already feeling the impact of rising prices.

“I’m very sorry that’s happening,” he said.“None of us want to see that happen.”

Inflation is currently ahead of the Bank of England’s 2% target at 3.1%. There are expectations it could rise to 5% by next April.Mr Bailey said:

“Inflation is clearly something that bites on people’s household income. I’m sure they’re already feeling that in terms of prices that are going up.”

While real wages soared during the pandemic as supply of free-money dominated the suppressed-demand for goods/services – all thanks to government intervention – that is all unwinding now and real wage gains are rapidly slowing…Source: BloombergThis has helped push UK’s “Misery Index” to its highest in a decade…Source: BloombergAnd arguably things are about to get far more serious as the choice between heating your home and feeding your family is a real one for many BritsAlong those lines, commenting on the decision not to raise borrowing costs this month. Mr Bailey said:

“Putting interest rates up, I’m afraid, isn’t going to get us more gas.”

Finally, Danny Blanchflower, a former member of the MPC who is now an economics professor at Dartmouth College in the US, warned that trusting what The Bank says may be a mistake:“We have no historical precedent for what’s happened,” he said.”We’ve never seen a shock of this kind and the big thing we are seeing at the moment is the furlough scheme is coming off, there is going to be an increase in taxes on National Insurance [and] universal credit was just cut.“So, the central bank really hasn’t a lot of clue what is going on.”He concluded rather ominously: “This is a really big uncertain world and everybody should tread cautiously. I’m afraid I have to say… you have to take what the governor of the Bank of England and the Monetary Policy Committee said with a very large pinch of salt.”

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MSNBC Goes Full Clowntard: Gaslights That Inflation Is A “Good Thing”, Deletes Tweet After Angry Backlash | ZeroHedge

Posted by M. C. on November 9, 2021

https://www.zerohedge.com/economics/msnbc-goes-full-clowntard-claims-inflation-good-thing-families-struggle-soaring-prices

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While millions of Americans are suffering from runaway, galloping inflation everywhere (to avoid the dreaded “H” word that made Jack Dorsey every lib’s enemy #1) from the gas pump to the grocery store aisle – which of course affects low-income individuals the most, MSNBC has gone up to bat for the Biden administration, deploying their best pretzel-logician to explain why all this inflation is literally – wait for it – good. First, the now-deleted tweet…

Nevermind that in September, a Kroger executive warned in that grocery prices were about to get nasty, and the company will be “passing along higher cost to the customer where it makes sense to do so.” Or that Nestle CFO Francois-Xavier Roger said blistering inflation would likely continue into next year – telling the crowd at a Barclays consumer staples conference: “If we talk of 2022, it is likely that input cost inflation will be higher next year than this year.” Or that Atlanta Fed President Raphael Bostic admitted last month that inflation is not transitory (and even has a swear jar collecting dollar bills for every time some gaslighter utters the word “transitory”).Or that agricultural input costs from fertilizer to feed have gone through the roof – thanks to soaring natural gas prices of all things.Or labor shortages throughout the supply chain – including US ports and the trucking industry – including those who refuse to take the Covid-19 vaccine.Or just read this from Bank of America:

“Meanwhile on Main Street: cost of living rising…wages rising; food (coffee @ 7-year high, wheat @ 13-year high), energy (BofA forecast $120/bbl Brent next 6 months), shelter (US rents up 9% YoY), wages annualizing 6% past 6 months; US core CPI currently 4.0% YoY, likely to be 5-6% spring’22.”

Nope. You see, the inflation we’re seeing today is a good thing, according to MSNBC’s James Surowiecki, whose financial background is a Ph.D. in American history and being a writer at The Motley Fool and The New Yorker.Their rationale: people spent less and saved more during the pandemic (more disposable income), and the stock market (which most American’s still don’t participate in) went apeshit.

Even though millions of Americans lost their jobs, enhanced unemployment benefits and stimulus payments left many of them better off, not worse. And the stock market, after initially falling, boomed.

Which of course is just propaganda, because as Morgan Stanley explained so simply even MSNBC columnists could understand, the “bottom 80%” of the population retained just a third of the $2 trillion in so-called excess savings. And without jobs, most have already burned through whatever money they had saved up. In other words, the bulk of government handouts ended up – you guessed it – in the hands of the ultra rich who never needed it!Facts be damned, MSNBC’s propaganda continued: “American consumers are, relatively speaking, flush, and it’s that strong demand for goods and services that is sending prices higher.”BUT (and totally couldn’t be the primary reason, could it?), “it’s taking manufacturers and food producers time to increase supply after cutting back production during the pandemic,” and as a result, “When you have high demand, and relatively low supply, prices go up.””The inflation we’re seeing is not, then, some mysterious affliction that’s descended on the economy. It’s the predictable product of the economy’s rapid recovery, and its costs have been offset, to a large degree, by robust wage growth and government policies.”Except, when adjusted for inflation, real weekly earnings are negative.

Meanwhile, even the notorious optimistic Wall Street is starting to tell the truth, with Goldman warning that things are going to get a lot worse before they get better.Not surprisingly, after getting ratio’ed in a furious backlash, MSNBC did the only thing it could and deleted its tweet, as its latest attempt at mass gaslighting propaganda went terribly wrong.

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