It should be Davos poor-excuse-for-men. From Bill Bonner and Joel Bowman at bonnerprivateresearch.com:
Your moral betters prepare for their annual, world improving confabulation
Bill Bonner, reckoning today from Paris, France…
But everybody grumbles…and in France, as in America, elite deciders are making everyday life harder. One thing: they’ve banned the use of outdoor heaters, which were ubiquitous in sidewalk cafes. You used to be able to sit outside near the gas heater and enjoy the street life. No more…
Meanwhile, we are working our way through a list of things that can go wrong. The World Economic Forum (WEF) calls it a “polycrisis.” We prefer the half-word “cluster” as it is more descriptive of the disaster to come.
Inflation, for example. The WEF’s Global Risks survey signals higher living costs as one of its near-term flash points. And here’s the latest. CNBC reports:
Inflation just dropped to 6.5%—but the ‘most important’ factor in predicting if it will keep falling is up 0.4%
In Thursday’s CPI report, “services less rent of shelter” showed a 0.4% increase in December. …since wages are “the largest cost in delivering these services,” [Powell] said, that might indicate out-of-control wage growth…
There is “sticky” inflation…and inflation of the Teflon variety. The non-sticky inflation includes things that go up and down readily – such as oil and commodities. The ‘sticky’ inflation comes from things such as wages and shelter, that don’t get marked-to-market on a daily basis.
Yesterday’s numbers tell us that the sticky part may become a tar baby – hard to get rid of. In the ‘services including rents’ category, for example, prices are up more than 7%. Much of that is wages. And nobody takes a wage cut to fight inflation.