The Sudden Onset of Inflation

68
Wed, Feb 15, 2017 - 11:09am

Isn't it interesting that, all of a sudden and after eight years of supposedly flat prices and deflation fears, all the rage is "surging inflation" and this phenomena may "force the Fed to act" to raise rates again as soon as March?

I don't know. Maybe there really is a sudden surge of price inflation? How would I know when I'm just a dope with a MacBook? However, I think it's fair to be more than a little skeptical..especially when it comes to the efficacy of government-created data. Is it possible for prices at both the wholesale and consumer level to suddenly surge to multi-year highs simply because Trump was elected? I'm having a hard time connecting the dots because that doesn't seem likely or possible. Instead, it's almost as if The Fed is dying to hike rates for their Banks and they're getting the data they want/need to justify their ends.

To that point, check this chart that I pulled from Twitter. Note that it's another one of those FRED charts from the Fed's own database. So, help me out with this...If the purchasing power of the dollar is down 30% over the past 17 years, how is it that NOW is the first time that we're actually seeing significant MoM and YoY inflation numbers??

Instead and once again, are the numbers simply being cooked/fabricated/made-up simply to fit the desired narrative? Want to run rates to historically low levels? Have the BLS (yes the same Bureau of Labor Statistics that cooks up the BLSBS each month!) print "inflation" at historically low levels, too! Need/want to hike rates for whatever reason? Have the BLS suddenly print that inflation "is surging"!

And you think that's not possible?? HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAH! Again, check that chart above from the Fed itself and tell me that inflation is only now beginning to pick up.

Why is the purchasing power of the dollar continually declining? Because The Fed is constantly increasing the supply of dollars in order to meet the liquidity demands of their Banks and the federal government!

Of course, many will then think of M2 "velocity" next. Granted, this chart is only updated through the end of Q4 but do you see anything here that suggests a sudden trend change? Me, neither.

So, of course what I'm suggesting here again is that it's all bullshit....just like everything else. Game the statistics into whatever you want/need them to show and then the Financial/Political/Media Complex reacts accordingly. All the while, the average person gets screwed. How?

  • The BLS deliberately understates inflation in order to constrain COLAs for retirees and Social Security recipients
  • The Fed decreases rates to zero and prints trillions of new greenback in order to save and shore up their member Banks
  • Now at the appointed hour, the Fed wants to hike rates so that their member Banks can charge more interest upon the vastly increased money supply, further strapping with higher interest costs the average individual or retiree.

Who wins? The Banks. Who gets screwed every time? The average, everyday American who is just trying to scrape by, working three jobs and desperately trying to hold it all together.

Only popular uprising or financial collapse exist as possibilities for changing this inherently corrupt and criminal system. Since popular uprising seems unlikely due to the complete lack of economic education in this country, we're left with only the option of financial collapse as a way of extricating ourselves from the serfdom of central bank control. And sadly, when it inevitably comes, global financial collapse is going to be an unmitigated disaster for nearly everyone.

But here's one more chart. Note that this covers about the same time period as the two FRED charts above. And be sure to note that, instead of declining like your purchasing power, this chart shows an increase of more than 4X over the same time period. And what is this? GOLD. Not the limitlessly-created fiat script of governments. Instead, REAL MONEY that has been recognized as such for millennia and, as always, your ONLY protection against the madness and criminality of the global bankers.

TF

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Markedtofuture
Feb 15, 2017 - 6:02pm

Dr. Dave Janda - The Three Groups Attacking Trump & Freedom

Published on Feb 15, 2017

The Spotlight of this Briefing is focussed on the three groups attacking President Trump and your Freedom.

The Three Groups Attacking Trump & Freedom
ag4me
Feb 15, 2017 - 5:52pm

Technically,

they are correct, the dam won't collapse. If the emergency spillway fails, the flow of water will carve a v shaped notch in the side of that hill till the entire reservoir is empty. A zero hedge commentor said it best. "Eau resevoir!"

infometron
Feb 15, 2017 - 5:35pm

@Turd Re: The sudden onset of erosion

As per your request

And here is your shear stupidity photo analysis (pun intended)

Anyone believing that really needs to listen to this:

Expert: What You Need To Know About The Oroville Dam Crisis
matt_
Feb 15, 2017 - 5:25pm

@Mickey

You have great advice and a fresh way of looking at the leveraged ETFs. Thanks.

I have been occasionally selling covered calls against my miners when I think we are due for a dip in price. I haven't lost money doing that yet.

However, I've lost a lot of money holding shares and repeatedly doubling down in the bear market. I've also lost money buying individual shares at bad times. If I knew then what I know now, I'd probably have my mortgage paid off.

I've been fooling around with momentum investing approaches, and I think anyone can avoid being wiped out. It may be difficult to do short term market timing, but anyone can jump off the train when it is already derailing. You just need to analyze which way the market is trending. It doesn't matter why it is trending that way. Looking back at the GDX or HUI data, anyone in their right mind should have gone to cash or started shorting miners in 2013. Not me. I was buying more shares every month like clockwork, even when all the trends said sell. I was the definition of dumb money.

I won't make that same mistake again. Hopefully the market will allow me to not be a perennial loser.

Outback
Feb 15, 2017 - 5:18pm
Docdhj
Feb 15, 2017 - 5:08pm

Flynn

My 2 cents. General Flynn is an honorable man. The reason for his termination I believe is NOT related to phone calls with Russian Ambassadors as pushed by The Lame Stream Fake Media. Trump fired him..... I believe there are only two reasons why Trump would fire someone close to him: 1) A person who flips and tries to undermine him or 2) A person who lies to him on critical information.

If I was a betting man ..... with Flynn I would bet on option 2. In trying to protect another friend Flynn could have lied to Trump and that did not sit well. Spicier told you that "Trump lost faith in Flynn." He lost faith because of a lack of honesty NOT related to Russia.

Next on the block.... Priebus.

My latest YouTube on The Three Groups Taking on Trump

Dave

Outback
Feb 15, 2017 - 4:26pm

Turd pissing on a dead horse

turd

every since 2013, have got the feeling we are in the middle of th desert and

what ever we see is a mirage.nothing what turds things is ever going to happen.

Turd you have got it right, but you're pissing on a dead horse

NOTHING is ever going to CHANGE.

you want to loose money, buy gold or silver, WORSE yet the MINERS.

fuck this ship, am going to do the beach and drink beer. At least I will

have a GREAT time in step do beating my fucking head trying to outguess

the ALGOs and the machines.

one last word, I fucked a Janet 50 years ago. She was a nice fuck.

outback

thedukes
Feb 15, 2017 - 4:04pm

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

lakedweller2
Feb 15, 2017 - 3:55pm

Wait

USD/JPY down. Gold, silver, copper up. Shelton saying a sort of gold standard...Miners should sky rocket into close.

Edit: also soybeans up. The trifecta.

surfeitndearth
Feb 15, 2017 - 3:54pm

re: Pan American Silver

from ceo.ca today...

Pan American Silver corrects error in February 14, 2017 earnings release @newswire/pan-american-silver-corrects-error-in-february-14 $PAAS $PAAS The error is due to net realizable value adjustments on the heap pad inventory at the Dolores mine. The impact of this error, after adjusting for the effect on taxes, was to overstate adjusted earnings for Q4 2016 and for the full 2016 year by $8.6 million. At time of publication, Pan American Silver shares were trading down $1.16 to $26.03 on 476,000 shares.

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