Posted on 02/12/2022 6:11:42 AM PST by Browns Ultra Fan
I thought the last inflation report of 7.5% inflation was bad. But then the Atlanta Fed updated their inflation measure for flexible prices. Flexible inflation, less food and energy, is roaring at 19% YoY!
Flexible prices are those prices that adjust rapidly.
Speaking of rapid rises, take a look at the 2-year US Treasury yield since COVID struck in early 2020.
We did see 2-year Treasury yields generally correlated with The Fed Funds Target Rate … at least until COVID struck. Since mid-2020, The Fed Funds Target Rate remains at 0.25% while the 2-year Treasury yield is roaring back with fuzzy expectations from The Fed’s leadership.
The 10-year Treasury yield is not rising as rapidly as the 2-year Treasury yield, but it is hovering around 2%.
But Bankrate’s 30-year mortgage rate is rising like a comet, similar to the 2-year Treasury yield.
Rapidly rising inflation may cause anxiety attacks. Here is a cure: an emotional support honey badger!
(Excerpt) Read more at confoundedinterest.net ...
The commies at the Fed are out of bullets. Now it’s just fake statistics.
As someone who worked in fixed income and banking for 25 years, bankers are some of the stupidest morons on Earth.
And all of this because a few wilting violets were offended by President Trumps mean tweets!
Yeah, no reason to stick money into CDs at < 1% when you get 1.5% in a 2 year treasury. The Fed doesn’t even need to raise rates much since the markets have already done it by 1.25 at the shorter end the last 5 months (5 rate hikes equiv, which is my estimate for the amount we get this year).
“But this time it’s different”.
Waiting for the housing bubble to pop and the Commercial Real Estate Collapse.
The first graph of percentage change is misleading. When interest rates are at an all-time post-depression low, even a small change looks big. If rates go from 1.5% to 2%, that’s a 33% increase. If rates go from 8% to 9%, that is only a 12.5% increase.
Interest rates for mortgages are at 4%, which still pretty darn low. That said, something has to give. Either worse-still real inflation, or MUCH high interest rates with an unpayable national debt to feed. Either is very bad.
Get ready for 20% interest rates, $6 gas, and a president who disappears.
They will let the inflation go wild.
They can not raise the interest rates much or the biggest expense for the federal debt will be the interest payment.
They know that.
They also are figuring that with inflation so high, that would be the reason to get to a cash less society faster.
Then, they own everyone and everything.
Boring. Everyone knows there’s inflation, what’s needed are the strategies for surviving it, not daily yammering that it exists.
The whole Ukraine thing is all about blaming Putin for the market crash that is coming
What kind of bullets are you talking about? Bullets to slow the overheated economy are available in profusion.
Putin is about to invade Ukraine in order to distract US voters from the stock market. Good theory. I like it. Makes strong common sense.
Of course, in the 70s, the Democrats had some sane Democrats, unlike today..
I just paid $3.73/ gal for gas on Long Island. Two weeks ago it was $3.39.
What Biden and gang have done in the last year were well on our way to being Venezuela.
I am so screwed.
I think inflation will continue so the debt gets paid with weak dollars. Of course this comes off the backs of citizens. The stock market has already anticipated the inflation hence the high level. The big holders are going to be getting out. Same with real estate. If you have doubled your money with such investments and get out, and if the dollar looses one half, you are breaking even.
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