Posted on 07/13/2022 6:34:25 AM PDT by Tell It Right
Yes, but, Latinos are thrilled that Jill Biden loves her some breakfast tacos........
The day is not over. Bargain hunters.
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More downside left. We still haven’t seen the washout yet.
Monday, Charles Payne (Fox Biz) predicted “a 9 handle” for the inflation number, and asked about the implications.
Bring on the Plunge Protection Team!
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The PPT must be very busy these days.
The way things are now shouldn’t BAD NEWS cause the markets to soar?-)
That's often the case with the Fed at the wheel. They're like Bizarro World where bad = good and good = bad. Inflation is an exception, though. High inflation (at least in the official bogusly calculated CPI) means the Fed is all the more likely to raise rates bigly, which makes the dollar stronger and brings prices down (relative to the dollar). Plus, raising rates means smaller companies have to pay more to expand if they do it on loan (same for larger companies but they're less liable to do it on margin than small companies). Less company expansion is bad for markets.
Welcome to 1970s style STAGFLATION.........
Welcome Back, Carter.
There are a record number of “reverse repos” on deposit with the fed. That means there is a TON of cash parked.
That cash can also be used to prop up the stock market to prevent a huge crash.
However, I believe the Fed is doing some QT as well as rate raising. I've seen some say as high as reducing the fed balance sheet by 1% per month. Is that accurate? How long will they do that? I don't know. IMHO the QE is more of a market inflator than the low rates (thus QT will burst the market more than rate hikes).
I see what you did there.
“ Imagine what it really is.”
High teens…at least.
Prolly right. The problem is some important items are experiencing inflation well beyond that ‘average’.
The rising cost of necessities is putting the squeeze on what little disposable income there was.
Double the 9.1 and that is about the real number.
And remember, this number is the accumulation of the previous years months. It is including lower numbered month’s so the actual real time inflation is considerably higher. I do think we will see 10 - 12% this fall/winter. And, today was reading about pretty severe drought conditions in the Midwest. Food prices are going up more. People will be hurting.
The 1.3% gain in June represents 15.6% annualized inflation rate...this is serious territory...
September is the magic month. I didn’t believe it until looking back at September ‘08.
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