from David Lin
From High Inflation to Hyperinflation: How Close Are We?
by Nick Giambruno
International Man
The Federal Reserve is now entering a monetary easing and rate cutting cycle in an environment of elevated inflation.
The last time this happened was during the 1970s, a decade that saw inflation spiral out of control.
The 1970s: An Optimistic Scenario
In the early 1970s, under Chairman Arthur Burns, the Fed faced rising inflation and concerns about economic growth and unemployment.
Despite elevated inflation, the Fed cut interest rates multiple times until 1972 to stimulate economic growth.
Inflation soared to over 12% in the months that followed.
Today’s Real Inflation Rate is Closing in at 40%
by Victoria White Berger
American Thinker
Updated, accurate reports have just been released by distinguished economists, federal watchdogs and reputable fact checkers on the actual economic situation—according to these, the U.S. has been in a recession since 2022, and the real inflation rate is now hovering close to 40%.
Most recently, the Brownstone Institute indicated the actual inflation rate as close to double the “informed” rate from media and government sources:
Many have questioned the accuracy of official inflation statistics, with dozens of academic papers written on the topic and doubts voiced by sources ranging from the New York Times to former President Donald Trump.
[snip]
According to our adjustments, cumulative inflation since 2019 has been understated by nearly half. This has resulted in cumulative growth being overstated by roughly 15%. This is a large amount for just 5 years – for perspective, peak-to-trough drop in real GDP during the 2008 crisis was 4%.
Inflation Gauge is Easing but Some of Biggest Expenses Are Left Out
by Alex Tanzi
Insurance Journal
Price pressures have eased substantially over the past two years, but a disconnect remains between what US inflation data show and what millions of Americans experience with their finances.
That’s in part because price levels are still higher than they were before the pandemic. Another explanation: the government’s key inflation measure excludes a number of major everyday costs that have surged in recent years.
Property taxes, tips and interest charges from credit cards to auto loans aren’t factored into the Bureau of Labor Statistics’ consumer price index. The CPI also leaves out a key aspect of home insurance, as well as brokerage fees and under-the-table payments to babysitters and dog walkers — costs that can add up.
Harris Says She Deserves Another Four Years in Power to Lower Costs
by Wendell Husebo
Breitbart.com
Vice President Kamala Harris told NBC News on Tuesday that she needs another four years in power to lower costs that rose about 20 percent across the board under the Biden-Harris administration.
Harris cast the tie-breaking vote in the Senate for the so-called Inflation Reduction Act that fueled inflation.
“I wonder, are the last four years an obstacle to you in this race?” NBC’s Hallie Jackson asked Harris.
“Here’s how I look at it. First of all, let me be very clear, mine will not be a continuation of the Biden administration,” Harris replied.
Global Fight Against Historic Inflation Surge is Nearly Over, Says IMF
Fund also upgrades growth forecast for U.S. economy, which remains the developed world’s best performer.
by David J. Lynch
Washington Post
Policymakers in the United States and other major economies have quelled the worst inflation in four decades without tumbling into recession, the International Monetary Fund said Tuesday, adding that this “major achievement” should pave the way for significant changes in interest rates, taxes and government spending.
The fund also raised its forecast for U.S. economic growth over the next two years, confirming that the world’s largest economy has enjoyed the strongest recovery from the pandemic of any advanced nation.
The United States now is expected to grow at an annual rate of 2.8 percent this year and 2.2 percent next year, faster than the fund predicted three months ago. Growth in the euro area economy this year is expected to fall below 1 percent, while Japan will barely grow at all, according to the IMF.
Escape Biden-flation Storm with a Walmart Tiny Home
from Zero Hedge
Housing affordability in the United States under the Biden-Harris administration has hit a generational low. After all, WEF’s slogan of ‘owning nothing and being happy’ has become an alarming reality for millions of Americans in the last 3.5 years.
To counter this hellscape that Democrats have created through the worst inflation storm since the 1970s, folks stuck in the doom loop of renting in dangerous big cities should find a plot of land in rural America. Next, find a tiny home.
We’ve discussed this for years: as the standard of living implodes in the US, the size of homes will shrink. Television shows have popularized tiny homes in recent years, and big-box retailers have been selling them (Home Depot).
Walmart is the latest retailer selling tiny homes. It now offers a 19-by-20-foot “expandable prefab house” delivered by flatbed truck for $15,900.
Not Close Enough for Comfort: Inflation Drops, but Most Continue to Struggle with Grocery, Rental Costs
Seven-in-10 renters say they can’t afford to buy a home yet (30%) or have given up on ownership (41%)
from Angus Reid
October 21, 2024 – As Canadians absorb the implications of another change in the inflation rate – down to 1.6 per cent – many are beginning to wonder what it will mean for their financial futures and pursuits of home ownership. For some, however, relief is lagging behind this key macroeconomic indicator.
Data from the non-profit Angus Reid Institute finds persistently high grocery and rental costs, which have bucked the overall downward trajectory of broader inflation, continue to put immense pressure on lower-income households. Overall, 51 per cent of Canadians say it remains a challenge to keep up with their household food needs, a proportion that has remained relatively consistent since it rose to this level in late 2021. Among those whose annual household incomes are lower than $50,000, the number having a difficult time rises to two-thirds (65%).
Girl Scout Dues Could Rise as Much as 240% Next Year
from Zero Hedge
So much for 2% inflation…
The Girl Scouts could be forced to raise yearly membership from $25 to $85, according to a new report from Fox News. That marks a rise of 240%, for those of you keeping inflation score at home.
Girl Scouts of the USA President Noorain Khan and CEO Bonnie Barczykowski said this week: “We have collectively acknowledged that a membership dues increase is needed which is greater than the 25 percent (or $6.25) the National Board has authority to approve in a single triennium.”
“Over the past few years, costs have increased everywhere, and neither GSUSA nor our councils have been immune to this pressure,” it continued. “Operating at a deficit — spending more than we bring in — as we have been doing, is not sustainable.”
Retail Expert Warns of Weak Holiday Shopping Season with Consumers ‘Stressed by Inflation’
by Amy Furr
Breitbart.com
A former Target executive and retail expert is warning of a not-so-jolly holiday shopping season as Americans struggle in President Joe Biden (D) and Vice President Kamala Harris’s (D) economy.
Former Target Vice Chairman Gerald Storch said during an interview on Fox Business Thursday, “It’s very clear that consumers are running out of money.”
“They’re increasingly stressed by inflation and the exhaustion of their pandemic-era savings. When you take a look over the last several years, what you see month after month, everyone talks about, the consumer’s still spending. They might be, but they’re spending less than the growth of inflation,” he stated.
In 2023, a LendingClub study found a majority of Americans live paycheck to paycheck, as polling at the time showed only 14 percent of voters believed Biden’s economic policies were helping them, Breitbart News reported.
23% of Tax Revenue ($1.1 Trillion) is Now Interest On the National Debt
by James Hickman
Schiff Sovereign
The corpse of King Louis XV was still warm when his son and successor, 19-year old Louis XVI, started cleaning the royal house.
French finances were an absolute mess. The country was almost hopelessly bankrupt after decades and decades of costly warfare… and even more costly royal luxury. The young king’s predecessors, Lous XIV and Louis XV, spared no expense when it came to their comfort and grandeur, and the end result was the largest national debt in the history of the world up to that point.
Louis XVI knew something had to be done urgently. So, his first order of business was to appoint a brand new finance minister– the famed economist and philosopher Jacques Turgot.