Economic policy making has become one variable – how much Treasury debt will the central bank buy with its own fiat debt? From Bill Bonner at bonnerprivateresearch.substack.com:
Plus neocon warmongers, trillion-dollar deficits, pushy planners and plenty more…
(Source: Getty Images)
Bill Bonner, reckoning today from Poitou, France…
Friday, we saw how Gina Raimondo, Secretary of Commerce, said ‘we’ had to ‘push’ people around in order to realize her version of a good economy. It’s not necessarily an economy that gives people more of what they want; she wants an economy that produces more silicon chips! And the way to get it is with more central planning.
We looked too at what the feds have to ‘push’ with – carrots and sticks – and the way the two political parties have come together to get more of them.
But the carrots are running out. The US has added $27 trillion to its debt so far this century…$1 trillion in the last 5 weeks. That’s money it spent…but didn’t have.
And now the Fed is trapped between ‘inflate’ or ‘die;’ it must now continue to inflate its economy…or its bubble economy will die.
But wait…the headlines tell us that inflation is beaten. CNN:
Inflation fever is finally breaking. The Fed’s soft landing may be in sight
If Fed Chair Jerome Powell were any less buttoned up, he’d be well within his rights to call a press conference, stride up to the lectern in a T-shirt and board shorts and say three words — “soft landing, jerks!” — before dropping the mic and walking out.
For context, a year ago the CPI peaked at 9.1% — the worst inflation in more than 40 years. [Now, it’s half that level.]
That is, to be clear, fan-freakin-tastic.
(For the record, the Fed has a 2% target for inflation. And while the CPI gets more headlines, central bank officials favor a different inflation gauge, the Personal Consumption Expenditures price index. The most recent core PCE index reading was 4.6% in May.)
For the record, in other words, it ain’t so ‘fan-freakin-tastic’ after all.
Printing press go…brrrr!
Every stonks page says invest in printing presses. (honk!)
All rainbow shoe aside, saw a page that said real inflation is about 25%.
Every staple I purchase at the Sack-N-Save has went up with some doubling under Brandon and no end in sight.
They have to make a profit and aren’t rated too big to fail.