U.S. Inflation-Adjusted Spending Stagnates To 0% Growth As Prices Surge (Core PCE Deflator Rises To 4.7% YoY, Highest Since 1989 Implying A Taylor Rule Rate Of 11.84%)

Confounded Interest ^ | 12/23/2021 | Anthony B. Sanders

[Browns Ultra Fan]

The core Personal Consumption Expenditures (PCE) deflator numbers for November were released this morning and the print was a whopping 4.7% YoY, the highest rate since 1989.

Meanwhile, U.S. consumer spending, adjusted for inflation (aka, REAL personal spending), stagnated in November as the fastest price gains in nearly four decades eroded purchasing power. Stagnated to 0.

Purchases of goods and services, after adjusting for higher prices, were little changed following a 0.7% gain in October, Commerce Department figures showed Thursday.

And as Paul Harvey would say, here is the rest of the story.

Core PCE growth YoY of 4.68% implies a Fed Funds target rate of 11.84%. Powell and the gang have the target rate at 0.25%. But the Taylor Rule doesn’t take into account the latest FEAR raging in Washington DC … the Omicron variant. Just another excuse for The Fed to do nothing and let asset bubbles blow out of control.

Tiny bubbles? How about HUGE bubbles!

[Browns Ultra Fan]

Biden and Congress with partners at The Fed are crushing America's middle class. Real spending growth in November was 0%. way to go Brandon!!

[GaltAdonis]

I bet the BBI* is expanding rapidly, though.

* BBI - Bean and Bullet Index

[Organic Panic]

I love these BS statistics. Such lies. Anyone who buys anything knows everything is at least 35% higher. In many cases 100% higher with this disgusting chomo and his merry band of marxists running the show.