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A Tsunami Warning Has Been Issued (INFLATION)
Daily Reckoning ^ | 5-14-2021 | Brian Maher

Posted on 05/14/2021 6:04:35 AM PDT by blam

A tsunami often takes its victims unawares… a liquid mountain rising sheer from a glass sea… suddenly… barreling ashore.

The coastal areas are promptly scenes of astonishing apocalypse.

Investors have thronged the beaches, merry as grigs. Many have been reading thrilling fiction — primarily the financial press.

Yet an offshore quake has shaken the deeps… releasing horrendous energies.

A devil wave may be racing for the beaches; inaudibly, invisibly… like a murderous cat preparing a pounce.

The deluge may arrive before its victims can take to the higher elevations.

The Greatest Monthly Inflation Spike in 40 Years

The latest inflation data came issuing from the Bureau of Labor Statistics this morning. It reported that:

The April consumer price index (CPI) jumped 4.2% since April last — at the greatest rate since September 2008.

A Dow Jones survey of economists had divined a 3.6% pace.

Core inflation (food and energy subtracted) came in at 0.8% — far outracing the consensus 0.2%.

It is the highest monthly rattle since 1981… when inflation exceeded 10%… and the late Paul Volcker was shouldering interest rates to 20% to cage the menace.

Today’s report so flabbergasted Bank of America economist Alexander Lin, the poor fellow’s eyes jumped the sockets:

“Eye-popping”… a “massive surprise.”

But does today’s report underreport true inflation?

Is the True Inflation Rate Double?

Housing prices have jumped 18% these past twelve months. That too is a record leap.

Rents, meantime, have inched merely 2%.

The data-manglers who calculate CPI mix in rents — but pluck out housing prices.

They claim a house is an investment rather than an expense.

Now swap the arrangement. That is, mix in house prices and pluck out rents.

(snip)

(Excerpt) Read more at dailyreckoning.com ...


TOPICS: News/Current Events
KEYWORDS: economy; finance; inflation; prices
I bought a newly built house in 1980 with a mortgage of 13%. My neighbor had one at 18%.

Stocks Tank After Hotter Than Expected Inflation Data

Why Inflation Is at a 12-year High ... It’s all about the money.

Biden's Blast from the Past – The Return of the Misery Index

1 posted on 05/14/2021 6:04:35 AM PDT by blam
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To: blam

Interestingly, gold and silver are not moving up all that fast. It has been steady for a couple of weeks, but slow.


2 posted on 05/14/2021 6:08:49 AM PDT by cuban leaf (We killed our economy and damaged our culture. In 2021 we will pine for the salad days of 2020.)
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To: cuban leaf

I bought the second bottom in gold at 1680s. Plan to hold for a long time.


3 posted on 05/14/2021 6:11:00 AM PDT by NorseViking
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To: blam

Housing prices have jumped 18% these past twelve months. That too is a record leap.

Rents, meantime, have inched merely 2%.


During the first decade of the century I lived in the Seattle area. I rented the whole time because the housing frenzy was causing renters to buy, leaving rental property to scrounge up renters. We rented a 3 bath, 3 bedroom house on Mercer Island just two blocks from Paul Allen’s house (compound, really) for $1400 a month. By the time we left town, we were living in a five bedroom, four bath house for $1600 a month. The same house, if we wanted to buy it would have cost us almost $4000 a month in payments and taxes.

And here we go again. I’ve seen this movie before. I know how it ends.


4 posted on 05/14/2021 6:11:48 AM PDT by cuban leaf (We killed our economy and damaged our culture. In 2021 we will pine for the salad days of 2020.)
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To: blam

The usual stupid mistake of price controls are no doubt soon to follow. Then REAL shortages.


5 posted on 05/14/2021 6:13:34 AM PDT by katana
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To: NorseViking

I doubt with the way things are going that we’ll be around for a long time.

It seems to be that global war has already started, with the communist virus attack, and now economic attack to see that China wins. Lumber shortages, fuel, housing and food shortages are all part of it. Folks had best wake up and do it real fast.


6 posted on 05/14/2021 6:14:02 AM PDT by Bulwyf
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To: katana
"The usual stupid mistake of price controls are no doubt soon to follow. Then REAL shortages."

I got caught in the Nixon price controls. The only way to get a raise was to be promoted. Everyone got promoted.

7 posted on 05/14/2021 6:19:27 AM PDT by blam
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Comment #8 Removed by Moderator

To: ping jockey

Double digit inflation is coming.


9 posted on 05/14/2021 6:23:05 AM PDT by kjam22
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To: kjam22
For inflation to be sustained requires inflation psychology. We don't have that yet, just the usual crowd buying physical silver. I have no idea when the psychology will kick in, but silver will jump to $50, and everyone will want some.
10 posted on 05/14/2021 7:20:17 AM PDT by palmer (Democracy Dies Six Ways from Sunday)
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To: Bulwyf

>>Folks had best wake up and do it real fast.<<
Most folks tootle through life with so little awareness of their surroundings. Those same people are the ones buying cakes to eat from the local supermarket bakery cuz there is nothing left on the shelves.

The same people that will stand in line for hours and do as the government commands them for a morsel of food.

Be a watchman on the wall. Hope and pray for the best and prepare for the worse.

Here we are, a few months after what felt like America’s back to, “Hey, how fast can we drive America into the dirt”.


11 posted on 05/14/2021 7:32:29 AM PDT by servantboy777
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To: kjam22
Double digit inflation is coming.

No, no, you have to slant it better than that. BIDEN VOWS TO DOUBLE YOUR MONEY.
12 posted on 05/14/2021 7:50:43 AM PDT by Colinsky
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To: blam
Two Greatest forms of Theft: Taxes, and Inflation

Hence, cryptocurrency
13 posted on 05/14/2021 8:01:58 AM PDT by Jan_Sobieski (Sanctification)
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