from Uptin
No Central Bank Wants to Stop Price Inflation
by Daniel Lacalle
Mises.org
Many citizens want more government control of the economy to curb rising prices. It is the worst strategy imaginable. Interventionist governments never reduce consumer prices because they benefit from inflation, dissolving their political spending commitments in a constantly depreciated currency. Inflation is the perfect hidden tax. The government makes the currency less valuable by issuing more units of fiat money, partially dissolves its debt in real terms, collects more taxes, and presents itself as the solution to rising prices with subsidies in an increasingly worthless currency. That is why socialism and hyperinflation go hand in hand.
Socialism rejects human action and economic calculation and sells a false image of a government that can create wealth at will by issuing more units of fiat currency. Obviously, when inflation arrives, the socialist government will use its two favorite tools: propaganda and repression. Propaganda, which accuses stores and businesses of driving up prices, and repression, which occurs when social unrest intensifies and citizens legitimately hold governments accountable for scarcity and high prices, are the two main strategies.
Used Vehicles Getting Ready to Turn Into Inflation Headwind, After Historic Plunge Had Powered Core CPI “Deceleration”
by Wolf Richter
Wolf Street
The used-vehicle pipeline is messed up for years to come.
Used vehicle prices – retail and wholesale – had performed a historic 50%-plus price spike between mid-2020 through mid-2022 when consumers were suddenly willing to pay whatever; dealers saw it and jacked up their prices. And knowing that they could extract record profits from those bedazzled consumers no matter what the price, dealers were willing to pay whatever at auctions to replenish their inventory. But starting in 2022, consumers gradually came to, and dealers had to respond. What followed was a historic plunge in used vehicle prices, both retail and wholesale, giving up about half of the price spike.
Carney On ‘The Bottom Line’: Biden-Harris Inflation Devastated Union Wages
by Pam Key
Breitbart.com
Breitbart News economics editor John Carney said Wednesday on Fox Business Network’s “The Bottom Line” under the Biden-Harris administration, union members saw their wages devastated by inflation.
Co-host Sean Duffy said, “You see unions, maybe they don’t endorse, or they endorse Trump, but they’re moving away from the Democrat Party. It fits hand-in-glove with the tariff conversation that Donald Trump’s been having with the media and with the American people. I think these workers believe that if you protect the American worker or at least give us fairer trade with the rest of the world, we’re winners as the American worker, which is why they’re supporting Trump and not Harris. Am I wrong?”
Peter Schiff: 2% Inflation is Fantasy Land
from Schiff Gold
Last week, Peter appeared on Soar Financially, where he was interviewed by host Kai Hoffmann. The two dive into gold’s upward trajectory and its historical precedents, the market’s misguided optimism when it comes to the American economy, and recent events in domestic politics and international banking.
Peter starts with his perennial reminder: public sector jobs do not boost the economy, and recent jobs numbers are intended to support a false narrative.
“Government jobs are not a sign of a strong economy. In fact, they weaken an economy because we have to pay for those jobs. They’re non-productive jobs. They result in bigger deficits, higher inflation. That’s really all we have– we have inflation that masquerades as growth.”
In a Rare Candid Moment, Three Central Bankers Talk Up Gold
by Mike Maharrey
GoldSeek
While central banks around the world have been aggressively adding gold to their reserves, central bankers don’t tend to talk much about the yellow metal.
Three central bank officials went off script at the London Bullion Market Association conference in Miami.
Reserve managers from the central banks of Mexico, Mongolia, and the Czech Republic sat together on a panel at the conference, and all three indicated their countries plan to add even more gold to their reserves in the near future as geopolitical tensions increase and global interest rates decline, creating more inflationary pressure.
Banco de México international reserves director Joaquín Tapia said, “Given the context that we are facing right now — lower rates, your political tension, U.S. election, a lot of uncertainty — maybe the share of gold in our portfolios could be increasing as well.”
Yellen: ‘Very High’ Cost of Living Has Existed ‘For a Long Time’, Before Biden
by Ian Hanchett
Breitbart.com
During an interview aired on Thursday’s broadcast of MSNBC’s “11th Hour,” Treasury Secretary Janet Yellen stated that people are unhappy with their personal finances because “the cost of living is very high.” But that’s been the case “for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.”
Host Stephanie Ruhle asked, “By most major measures, the economy is doing very well. Yet, most people in America, many people in America still don’t feel good about their personal finances. What do we do about that, how do we solve for it?”
Yellen answered, “Well, I think the cost of living is very high. This has really been true for a long time. But the inflation that we saw after the pandemic really exacerbated it for so many people.
Landing Cancelled? Retail Sales Jump, Prior Months Revised Up, Boost Atlanta Fed GDPNow to +3.4% Inflation-Adjusted GDP Growth
by Wolf Richter
Wolf Street
This demand growth is adding to renewed inflation concerns. The huge waves of immigrants in 2022-2024 are part of this demand growth.
Upon the release of the retail sales data today, the Atlanta Fed’s GDPNow’s estimate for inflation-adjusted GDP growth in Q3 rose to 3.4%, nearly entirely because the inflation-adjusted growth of its consumer spending component got boosted by retail sales today.
Did Inflation Save Us From ‘New Progressive Economics’?
Anti-market progressives dominate the Biden administration. Their policies also help discredit it.
by Christian Britschgi
Reason.com
The Biden era’s high inflation has been terrible for the economy and the country generally. But did it save us from a more permanent progressive takeover of federal government policy?
That’s the tantalizing question hanging over a recent piece published by Vox Senior Politics Correspondent Andrew Prokop that chronicles the rise, and pending fall, of “New Progressive Economics.”
President Joe Biden obviously was not the left’s preferred candidate in the 2020 Democratic primary.
But, as Prokop tells it, he staffed his administration with lots of ultra-progressive wonks and political operatives who wanted to overthrow the Democratic Party’s perceived “neoliberal” consensus on trade and regulation in favor of aggressive anti-trust enforcement, proactive industrial policy, protectionism, and a massive increase in social spending.
Inflation, Deflation, and the Great Wealth Transfer
In this live discussion at Porcfest 2024, Chris Martenson and Jeffrey Tucker critique the economic and monetary policies of recent years, highlighting inflation, taxation, and government manipulation. They explore the lasting consequences of these policies on purchasing power, healthcare, and generational wealth.
by Dr. Chris Martenson
Chris Martenson’s Peak Prosperity
In this conversation, Chris and Jeffrey Tucker discuss the far-reaching consequences of U.S. monetary policy, particularly following the 2008 financial crisis. Chris begins by highlighting how policies of inflation, taxation, and deflation have been used, citing Lenin’s strategy to undermine a capitalist economy. He expresses concern about the state of the country, including the handling of borders, elections, and the younger generations’ ability to build wealth. He criticizes the U.S. Federal Reserve’s decisions, particularly under Ben Bernanke, for artificially inflating housing prices and thereby making homeownership increasingly inaccessible for younger people.
Pennsylvania GOP Senate Nominee Dave McCormick: ‘Bad Policy’ From Biden-Harris, Bob Casey Has Driven Inflation
by Nick Gilbertson
Breitbart.com
Pennsylvania Republican Senate candidate Dave McCormick blasted Sen Bob Casey (D-PA) during their debate Tuesday night for supporting legislation signed into law by the Harris-Biden administration that led to crippling inflation.
While fielding a question about the causes of the 40-year-high inflation reached under the Biden-Harris administration, McCormick pointed to the administration’s extreme spending, which was supported by Casey.
WATCH — Trump Brings Back Jeb Bush “Low-Energy” Label for Pennsylvania Democrat Bob Casey:
The Next Wave(s) of Inflation
by Adam Sharp
Daily Reckoning
Have you ever been caught in a set of gnarly waves at the ocean? The kind where you get smashed by a breaker, come up for air and there’s another big one waiting for you at the surface?
This is a solid metaphor for inflationary periods. They don’t happen like a single big tsunami.
They are typically processes that play out in stages over a decade or more. Policymakers try various fixes, and most fail or only provide temporary relief.
Let’s take a look at the three waves of America’s 1970s inflation…