I tend to agree with this. A reasonable debate can be had to figure out if the Fed's policy is smoothing out what would have been a quicker, but more forceful crash, but ultimately the piper must be paid either way.
sky high inflation coming?
- Thread starter zdreg
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I tend to agree with this. A reasonable debate can be had to figure out if the Fed's policy is smoothing out what would have been a quicker, but more forceful crash, but ultimately the piper must be paid either way.
http://www.breifing.com/Investor/Calendars/Economic/Releases/cpi.htm
CPI is up.
Wages down.
Breifings' final word is that a high CPI is not sustainable without wage increases.
I agree.
Fed is now on target 2% .
CPI is up.
Wages down.
Breifings' final word is that a high CPI is not sustainable without wage increases.
I agree.
Fed is now on target 2% .
Not that simple. Depends how the bond markets react, and the FED's response.
America can't run trillion dollar deficits in perpetuity, with no consequence.
Its only one day post FOMC. Market message today was inflation.
Usd down , gold up big and steepening treasury curve.
Poor demand of 30 year TIPS at pre-auction yeild so they were sold along with
T-bonds.
Is the fed dismissive of recent food and energy trends as noise.
Is the fed complacent , behind the inflation curve, too easy given current data?
Yeah, 2% but....
Is a UK type surprise in the near term future.
Usd down , gold up big and steepening treasury curve.
Poor demand of 30 year TIPS at pre-auction yeild so they were sold along with
T-bonds.
Is the fed dismissive of recent food and energy trends as noise.
Is the fed complacent , behind the inflation curve, too easy given current data?
Yeah, 2% but....
Is a UK type surprise in the near term future.
what would a UK type surprise look like?
If you want to pretend inflation is higher prices be my guest. For the rest of us, these two charts pretty much sum up the situation:
You sure about that???
We are seeing a well organized national movement to drive up the minimum wage. From what I read in the press, cities and states are tripping over themselves to embrace this - i.e. Seattle, Mass., etc.
http://thinkprogress.org/economy/2014/06/19/3450807/massachusetts-minimum-wage-11/
Look for this trend to continue as low skilled workers and government dependents increase
http://www.usatoday.com/story/news/nation/2014/06/17/children-surge-immigration-texas/10643609/
while, at the same time, taxpaying citizens and corporations evacuate the premises:
http://www.bloomberg.com/news/2014-...gest-firm-yet-to-renounce-u-s-tax-status.html
http://www.marketwatch.com/story/re...-citizenship-2014-06-17?link=MW_story_popular
That wages must rise for inflation to ignite is old economics. All you need is a bifurcation and there you go while wages stay sticky. Minimum wage should not be raised because it is an interference with free market economy. Through minimum wage raises, the socialists hope to remain in power because there will be more unemployed to vote for them, I guarantee you that.
It is most definitely a power grab. There are new kids in town (literally and figuratively) who are running this show and Barack and Yellen can only stand by and watch. Fortunately, the problem with Socialism is that eventually you run out of other peoples money and that is likely to happen sooner rather than later in this case.
In a "normal" country that protects it's citizens and cares for it's poor by offering them opportunities rather than handouts you see economies like this
http://www.cnbc.com/id/101767406
How sad it is that capitalism in this country has retreated this far.
In a "normal" country that protects it's citizens and cares for it's poor by offering them opportunities rather than handouts you see economies like this
http://www.cnbc.com/id/101767406
How sad it is that capitalism in this country has retreated this far.