from Schiff Gold

On April 5 1933, Franklin D. Roosevelt abandoned the gold standard, wielding questionable legal power amidst America’s dire economic depression. His whimsical approach to monetary policy, including coin flips and lucky numbers, unleashed unprecedented inflation and price increases that have since amounted to nearly 2500%. Our guest commentator explores this tragic history and the legacy of enduring economic turmoil that still plagues America today.

The world is full of scraps of paper today. – Benjamin Anderson, economist, Chase Manhattan Bank (1920 – 1939)

April 1933 found America mired in a crushing economic depression, and newly elected president Franklin DeLano Roosevelt — who had declared the previous month he had a legal power derived from the Trading with the Enemy Act to assume control of our monetary system — responded by taking America off the gold standard.

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from Real Vision

by Wolf Richter
Wolf Street

“Rates have been extremely low for a long time — it’s hard to know how many investors and companies are truly prepared for a higher rate environment.”

Jamie Dimon, in his letter to JPMorgan Chase shareholders, was shaking up the internet a little this morning when he discussed the range of scenarios he envisioned for inflation over the longer term, and interest rates over the longer term – and the potential causes.

But he also cautioned about running a business based on “economic prognosticating.” He said: “Instead, we look at a range of potential outcomes for which we need to be prepared. Geopolitical and economic forces have an unpredictable timetable — they may unfold over months, or years, and are nearly impossible to put into a one-year forecast. They also have an unpredictable interplay: For example, the geopolitical situation may end up having virtually no effect on the world’s economy or it could potentially be its determinative factor.”

Continue Reading at WolfStreet.com…

from KGUN9

We’ve been writing about this for a long time. In fact, since inception we’ve only been focused on long-term trends… and we see these as highly inflationary.

by James Hickman
Schiff Sovereign

Jamie Dimon, the CEO of JP Morgan Chase, did not open his annual shareholder letter with rosy language about the state of the world, or even enthusiasm about his bank’s record profits.

Instead, he describes “yet another year of significant challenges” including the war in Ukraine, war in the Middle East, extreme tensions with China, higher food and energy prices, turmoil in the banking sector, outrageous government deficits, and even major risks with the Federal Reserve’s monetary policy.

Dimon writes that “America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” and that this is a “time of great crises”.

Continue Reading at SchiffSovereign.com…

from Matt Kohrs

by Billy Bambrough
Forbes

Bitcoin has defied its fiercest critics with a barnstorming price rally over the last few months (and could now be in for its biggest month ever).

The bitcoin price has topped $70,000 per bitcoin, up from lows of $15,000 at the end of 2022, with “leaks” this week sparking wild speculation of a Wall Street price game-changer.

Now, as the market braces for a huge Federal Reserve inflation flip, Fed president Neel Kashkari has issued an “incredible” response when asked, “when will the Fed put bitcoin on its balance sheet?”

Continue Reading at Forbes.com…

from BNN Bloomberg

by Vince Golle
BNN Bloomberg

(Bloomberg) — US consumer-price data in the coming week, arriving on the heels of surprisingly strong jobs numbers, is projected to show a glacial slowdown in underlying inflation that explains the Federal Reserve’s cautious approach to lowering interest rates.

The March core consumer price index, a measure of underlying inflation that excludes food and fuel, is seen rising 0.3% from a month earlier after a 0.4% advance in February. Wednesday’s report is expected to show a similar increase in the overall CPI.

The core price gauge is projected to have climbed 3.7% from a year ago, which would mark the smallest gain since April 2021. While the annual figure is well below the 6.6% peak reached in 2022, progress more recently has been uneven.

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from Yahoo Finance

from Zero Hedge

Authored by Jeffrey A. Tucker via The Epoch Times (emphasis ours),

There’s something about employed intellectuals. When they are trashing popular wisdom and perceptions of regular people, they are truly in their element.

They love nothing better. It’s a way for them to show off their superior understanding, flash their credentials, and dazzle others with the merit of their time and expense in schooling. It justifies their social standing and income. And it assures their jobs.

Where would we be without them? Wallowing in ignorance, no doubt.

The trouble is that very often the popular wisdom is correct whereas the intellectuals are wrong.

Continue Reading at ZeroHedge.com…

from NBC News

by Olivia Rondeau
Breitbart.com

All 371 locations of the 99 Cents Only stores are shutting down, with company executives blaming the “difficult” decision on such causes as “inflationary pressures.”

The company, which opened its first location in 1982, boasts of having the “lowest price guaranteed” on its website. That claim is soon to be no more, with the operators announcing Thursday that liquidation sales will begin Friday.

An official press release said an “orderly wind-down of its business operations” is starting after entering a plea agreement with Hilco Global “to, among other things, liquidate all merchandise owned by the Company and dispose of certain fixtures, furnishings, and equipment at the Company’s stores.”

The hundreds of stores will begin selling all of their remaining items and equipment before the real estate itself is sold by Hilco Real Estate.

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from CBS 17

by Bryan Mena
CNN

Washington (CNN) — American manufacturers have been squeezed for the past two years by lingering supply-chain disruptions and high interest rates, but the industry finally expanded in March for the first time in 16 months, according to the Institute for Supply Management.

But a resurgence in the industry could complicate the Federal Reserve’s ongoing inflation fight, either delaying the first interest rate cut or resulting in fewer cuts this year, some economists say. Interest rates have been at a two-decade high since July, after the Fed raised rates aggressively over the prior year and a half.

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from The Lead-Lag Report

That is more than three times the rate of inflation between 2014 and 2024

by Neirin Gray Desai
DailyMail

McDonald’s was once seen as an affordable spot to eat out but for many Americans it’s meals have become a luxury.

In just 10 years, the average cost of a selection of its top menu items has doubled, according to a new study. Some items cost three times as much.

That is more than three times the official rate of inflation – the cost of goods has risen just 31 percent since 2014, according to the US Bureau of Labor Statistics.

Then, a Quarter Pounder with Cheese Meal and an Oreo McFlurry would set you back less than $8. Now, that combo would cost more than twice that at about $16.50.

In the rest of the US economy $8 in 2014 would be worth about $10.50 now.

Continue Reading at DailyMail.co.uk…

from CNBC Television

by Wendell Husebø
Breitbart.com

The nationwide average price for regular gas topped $3.54 a gallon, a spike of more than 45 percent under President Joe Biden, AAA reported Wednesday.

In the past month, gas prices rose 20 cents ($3.34), about one dollar more expensive ($2.38) than when Trump left office.

Gas prices remain high and could go higher due to industry and political factors. Biden’s economic war on American energy independence during instability in the Middle East and in Ukraine are significant factors.

Continue Reading at Breitbart.com…

from BNN Bloomberg