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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  68 Comments

Feb 15, 2017 - 11:32am

So far, so good

CDG is nearly back to where it was when Mother began flapping her gums yesterday:

And on the bright side, price has bounced off the 100-day MA for the 4th consecutive day:


LostMind
Feb 15, 2017 - 11:36am

Quandry for the FED???

Rising inflation has been continual since 1913... They have handled it by printing more and lower rates. They now have to deal with all that extra US$ in the world by raising rates.

The FED will be the last lender when this goes to shit. Who else will be buying all those UST <--kind of looks dirty now doesn't it, kinda of like STD... I digressed...

Anyway, All US debt will be held by the FED and they will keep on printing until they no longer can. I mean, when you have to actually pay someone in gold or oil to print your currency because they wouldn't accept your currency what then?

I wonder if they will put Obama on our new Trillion$ bill? Wouldn't that be cool!! Obama bucks buys you a loaf of bread! I wonder what gold would be worth in US$ by then???? I'm thinking people will be digging through cow shit and straining cow piss to own some gold at that point... further digressed...

I'm thinking I have become to pessimistic. All of my friends are so happy with the DOW right now, just so happy. Their returns are screaming higher... I wonder why my portfolio of ONLY gold and silver miners is up 65% since December 28?! Something broke and we just haven't figured it out.... or have we?

Marchas45
Feb 15, 2017 - 11:36am

I Had A Customer

Come in and I missed my 4th Keep Stacking

Boy I can't stand that Ms. Waters you can tell her questions where lead ins for Yellen. What a waste she is. Both of them. It's All Efen Politics Give Them All Freebie's To Do Your Wishes. Pisses Me Off

Blaggers
Feb 15, 2017 - 11:39am

Inflation

A perspective from Gains, Pains and Capital

The Markets Are Screaming "Inflation!" Are You Listening Yet?

I keep pounding the table and screaming about inflation… but people still don’t get it.

Hopefully yesterday’s inflation data was a wake up call.

For those who missed, US wholesale inflation posted its largest monthly jump in four years yesterday. Core Producer Price Index rose 0.4%; only 0.2% was expected. And Fed Chair Janet Yellen blatantly hinted at another interest rate hike in March… despite clear evidence the US economy is rolling over.

If this doesn’t SCREAM “inflation” to you, nothing will.

The fact is that the Fed realizes it has let the inflation genie out of the bottle. The inflation rate is already well above the Fed’s desired target of 2%, having moved a total of 3% higher in the last 18 months.

Gold and Silver have already "figured it out." They're up 6% and 11% thus far year to date.

Look, the potential to see triple digit gains from inflation hedges is here.

Seithen Blankone
Feb 15, 2017 - 11:40am

Mannerino

Might want to check out traderchoice.net

I've done very well following his evolution system. Make money going up or down. Good way to play a BS market that is hyperinflatiing.

lakedweller2
Feb 15, 2017 - 11:41am

Metals Manipulation

They want you out of metals. They want whatever wealth you have. Why do banks have PM stocks on their balance sheets? Deutche Bank, Swiss Bank and others.

Feb 15, 2017 - 11:42am

Be sure to see this

"IC" = Intelligence Community

Author is former NSA.

The War on Trump is going to continue to escalate. For our purposes here, this should serve to weaken the dollar and permanently reverse the trend and gains since the election.

dale
Feb 15, 2017 - 11:42am

Ship of Fools

I agree. This is a blatant set up, unwelcome but not unexpected. Trump continues to be attacked from every possible angle which confirms the ongoing war within the government. Coup, counter-coup in real time. Maybe I should say surreal-time. I had to laugh at Kunstler's recent turn of phrase; red team and blue team playing capture the flag on the deck of the Titanic. We've entered global cooling - too many icebergs surround this floundering ship of fools.

Feb 15, 2017 - 11:44am

The Financial/Political/Media Complex

Well this couldn't have been more timely for the purposes of this post! See how this works??

https://www.zerohedge.com/news/2017-02-15/goldman-raises-march-rate-hike...

canary
Feb 15, 2017 - 11:47am

"Complete lack of economic education"

And why to study economics?...Just buy a computer trading algorithm, and the next day you think that you know everything.

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