from Sky News
Is the Inflation Monster Still Hiding Under the Bed?
by Mike Maharrey
Money Metals Exchange
The so-called grownups tell us everything is fine. The inflation monster is gone now.
Or is it?
Sure, most people don’t believe it’s there, but I think the inflation monster is hiding under the bed. The adults in the room say it’s not there. But kiddos, there are signs — if you look close enough.
The headline number in last week’s September Consumer Price Index (CPI) report provides a false sense of security. Annual price inflation dropped to 2.4 percent, the lowest since February 2021.
Sounds as if we’re perfectly safe lying in our bed, right?
But look and listen a little more closely.
U.S. Drinking Rates Hit Highest Level Since 1970s Inflation Storm as Tequila Demand Soars
from Zero Hedge
A broad overview of America’s beer, spirits, and wine consumption reveals a steady increase since the Dot Com bust, with per capita levels approaching the highs last seen during the inflation-driven misery storm of the 1970s. Economic misery and rising alcohol consumption often go hand in hand.
“During periods of recession, US per capita alcohol consumption from beer, spirits and wine has been very resilient. Total beer volume declined in 2009 whilst spirits volume continued to grow,” Goldman’s Olivier Nicolaï told clients in a note on Tuesday.
Nicolaï noted, “Within overall US alcohol consumption, beer has been steadily losing share to spirits over the last 20 years. Within the spirits category, tequila has been gaining market share at the expense of vodka over recent years.”
Six decades of US per capita alcohol consumption data shows how war and economic misery can impact drinking rates among consumers. From the 1960s to the 1970s, the rate of alcohol consumption soared on a per capita basis, likely due to foreign wars and high inflation.
Fed Has Largely Won Inflation War: Moody’s
CPI surprises largely temporary, shouldn’t derail monetary easing
by James Langton
Advisor
While the latest U.S. inflation reading was stronger than expected, that upside surprise is unlikely to derail the U.S. Federal Reserve Board’s view that price pressures are cooling, says Moody’s Ratings.
In a new report, the rating agency noted that, despite the strong headline consumer price index (CPI) reading last week and the uptick in core inflation, much of the upside surprise was driven by temporary gains in certain volatile components of the index. Further, other details of the data were more encouraging.
“Importantly, shelter inflation, which has been particularly sticky, cooled to 0.2%, down sharply from 0.5% in August,” it said.
Additionally, the rise in core inflation “was driven up by one-off price jumps in the volatile goods and services sub-categories,” it noted.
Consumer Inflation Expectations Hit 40-Year High, Pressuring Fed Rate Plans
by Jordan Finneseth
Kitco
(Kitco News) – Interest rates and expectations for interest rate cuts have dominated financial headlines for several months, and while traders are occupied with dot plots and Fed speak, sentiment among U.S. consumers regarding inflation offers a potential warning sign that the Fed may actually be forced to hold or raise the benchmark rate if the cost of living begins to tick higher again.
“US consumers’ inflation expectations for the next 5-10 years skyrocketed to 7.1% in October, the highest in over 40 years,” noted analysts at The Kobeissi Letter. “This metric has DOUBLED in just several months, according to the University of Michigan Consumer Survey.”
Two-Thirds Of Economists Think Inflation Would Be Worse Under Trump Than Harris, Poll Finds
A majority of economists believe former President Donald Trump’s proposed economic policies would lead to higher inflation than those of Vice President Kamala Harris, according to a survey published Monday by the Wall Street Journal, findings which go against a far stronger inflation record under Trump than Joe Biden.
by Derek Saul
Forbes
Key Facts
– Some 68% of economists said inflation would be higher under Trump’s economic proposals than Harris, according to the Journal’s survey of 50 economists conducted Oct. 4-8.
– That compares to 12% who believed Harris inflation would be worse and 20% who didn’t anticipate a noticeable gap.
– It’s a wider gap than was found in a similar poll conducted July 5-9 before President Joe Biden exited the race, when 56% of economists said inflation would be worse under Trump than Biden compared to 16% for the opposite.
Bill Maher Reasons That Anyone Struggling with Inflation Should Be the Biggest Proponents of Abortion
by Olivia Murray
American Thinker
Progressives have a long history of proposing murder to mitigate expenses, whether public or private, and Bill Maher is continuing the tradition; from Ian Hanchett’s new report at Breitbart News:
On Friday’s broadcast of HBO’s ‘Real Time,’ host Bill Maher stated that male working-class voters who are struggling with inflation ‘should be more pro-abortion than anybody’ because if one of those voters ‘can’t afford his bills, wait until he has a baby he doesn’t want.’
This particular segment was a roundtable-type dialogue between Maher, conservative radio host Buck Sexton, CNN’s Laura Coates, and journalist Tim Alberta; when Sexton argued that the abortion isn’t the top priority for people struggling to make ends meet right now, Maher reasoned that it should be. If inflation and the surge in the cost-of-living is back-breaking now, just wait until there’s another “unwanted” mouth to feed!
Ten Signs That the Economy is a Giant Mess as the Election Approaches
by Michael Snyder
The Economic Collapse Blog
The health of the economy has been a major determining factor in many past presidential elections, and the health of the economy is certainly going to have an enormous influence on the outcome of the upcoming presidential election. In fact, according to a poll that was just released by Rasmussen the economy is the number one issue by a wide margin for voters in the ultra-important swing state of Pennsylvania. Unfortunately for the Democrats, most Americans are not pleased with how the economy is performing, and it appears that conditions are now taking another turn for the worse. The following are 10 signs that the economy is a giant mess as the election approaches…
#1 The number of Americans filing first time claims for unemployment benefits just hit the highest level in over a year…
Trump Vows to Cut Energy Prices ‘in Half’ Within a Year of Taking Office
by Elizabeth Weibel
Breitbart.com
Former President Donald Trump vowed that if elected president, he would cut energy prices “in half” within a year of taking office.
During a town hall event in Oaks, Pennsylvania, on Monday, Trump told the crowd that he would “bring down” the cost of energy by 50 percent during his first year in office.
Trump added that the United States has “so much energy” that is not being used, noting that the U.S. is getting “energy from Venezuela.”
“And, when we get everything else down — houses — everything’s going to come, it’s going to be beautiful. You’re going to have a house,” Trump told the crowd. “Just wait a little while, give me a little while, let me get in. One year from January 20th, we will have your energy prices cut in half all over the country.”
Tim Walz Fails to Address Rising Grocery Prices Under Harris: Points to ‘Price Gouging’ and ‘False Information’
from Breitbart.com
Minnesota Gov. Tim Walz (D), running mate to Vice President Kamala Harris, was unable to explain why voters should not blame Harris for the economy and rampant inflation, instead opting to talk about “price gouging” and “false information.”
“Let’s talk about the economy,” ABC News’s Michael Strahan said in an exclusive one-on-one interview with Walz.
[…] “That is the top issue for voters out there — 74 percent of voters said the past year they’ve had to cut back on groceries because of the rising costs, of course, and a lot of those voters, they’re concerned that they cast a vote for Kamala Harris, but she’s responsible for that,” he said, asking, “So how do you reach those voters? What do you say to those voters who may blame her for the economy?”
Inflating to a Tipping Point
As inflation pressures mount, economic indicators reveal a complex landscape where rising costs clash with official narratives, pushing public awareness toward a critical tipping point.
by Dave Fairtex
Chris Martenson’s Peak Prosperity
Consumer Economy
Auto/Light Truck Sales (ALTSALES); +3.24% m/m, (prior -3.91% m/m)
Producer Prices (PPIACO); -1.16% m/m, +1.06% y/y
CPI All Urban (CPIAUCSL); +0.18% m/m, +1.93% y/y
Auto/light truck sales have been (mostly) chopping sideways for the past year or so; this month’s increase didn’t cause any sort of breakout from this range. Auto sales are down maybe 10% from the highs set during the Orange Hitler years.
PPI is slowly moving lower – that’s disinflationary – it (mostly) tracks energy prices.
The deliberately understated CPI says “inflation is under control”: +0.18% m/m (2.16% annualized). How are your auto insurance or sickcare costs? Wolf: