Monetary inflation is always and everywhere a problem caused by the people who control the production of money, or more properly, fiat-debt instruments—governments or central banks. These people always point a thousand different directions to deflect the blame. From Bill Bonner at rogueeconomics.com:
Policy failures will be responsible for tens of thousands of families getting stranded at airports, paying exorbitant gas prices, and encountering grocery store shortages. Americans face the most expensive Thanksgiving on record.
– The Hill
BALTIMORE, MARYLAND – The Bureau of Labor Statistics (BLS) report came out just after we filed yesterday’s Diary.
The Washington Post broke the news:
Prices rose 6.2 percent in October compared with a year ago, the largest annual increase in about 30 years, as rising inflation complicates the political agenda for the White House and policymakers’ road map for the economy heading into the end of the year.
Overall prices rose 0.9 percent from September to October, tying June for the biggest one-month increase since the Great Recession. Only a few categories saw prices fall last month, including airfare and alcohol.
But don’t worry. Federal Reserve chairman Jerome Powell, who insisted that inflation was only “transitory,” now promises to make it go away:
…we understand completely that it’s particularly people who are living paycheck to paycheck or seeing higher grocery costs, higher gasoline costs, when the winter comes, higher heating costs for their homes. We understand completely what they’re going through. And we will use our tools over time to make sure that that doesn’t become a permanent feature of life.
But a 6% inflation rate wreaks havoc.
The current yield on the world’s most important asset – the 10-year U.S. Treasury bond – is only 1.46%.
The 10-year Treasury is the backbone of pension funds, corporate savings, Social Security, insurance programs, and other institutional holdings.