from Peter Schiff
Will Fed Get Kamala Elected?
by James Rickards
Daily Reckoning
The Aug. 5 mini-crash was a potent reminder to investors that stock markets aren’t a one-way street.
It wasn’t the end of the world. Market indexes down 3.0% in a day is a big deal, but it bears no comparison to October 1929 when the stock market fell 21% over two days or October 1987 when the stock market fell 21% in one day.
What caused the Aug. 5 mini-crash? There are several suspects. The employment report issued on Friday, Aug. 2 showed a decline in job creation and an uptick in the unemployment rate.
Neither move was extreme but it got the markets’ attention. In fact, the Aug. 5 decline actually started on Aug. 2, giving the two-day decline a greater impact.
Peter Schiff: The “Low” Inflation Report is Because of Used Cars. Almost Everything Else is Up.
by Peter Schiff
Schiff Sovereign
Sometimes I have to ask myself if the people in charge actually know how to read.
Honestly I’m not entirely sure. Perhaps they know how to read… but they choose not to do so. Because it’s pretty obvious no one is paying attention to the details in the government most recent inflation report, which was just released this morning.
Everyone is cheering the news of 2.9% inflation, which the government said is “the smallest 12-month increase since March 2021”.
Sure, on the surface, it’s decent news. And I’m sure Joe Biden and Kamala Harris are going to issue some remarks patting themselves on the back– something like, “while there is still more work to be done, today’s report shows that we are making significant progress in fighting inflation thanks to my policies. . .”
Donald Trump Promises to ‘End the Era of Inflation, Mayhem, and Misery’
by John Carney
Breitbart.com
Former President Donald Trump unveiled a pledge on Wednesday to fight inflation by cutting energy prices in half, securing the borders from illegal immigration, bringing supply chains back to U.S. soil, and reducing regulatory burdens on American businesses.
In remarks that drew a sharp contrast to the policies of the Biden-Harris administration, Trump told an audience in Asheville, North Carolina, that he would cut energy costs in half, restore home affordability by securing borders and deporting illegal immigrants, impose 10 to 20 percent tariffs on imports from countries he accused of taking advantage of the U.S., and end taxes on tips and Social Security income.
Beneath the Skin of CPI Inflation: Broad Month-to-Month Acceleration, Services CPI Bounces Back From Outlier, Plunge in Durable Goods Prices Slows
by Wolf Richter
Wolf Street
Housing CPI re-surged in July from the June outlier.
On a month-to-month basis, the Consumer Price Index (CPI) and Core CPI accelerated in July. Inflation in core services, which accounts for 65% of total CPI, bounced back from the outlier and re-accelerated sharply; food prices ticked up; energy prices stopped dropping; and durable goods prices slowed their historic plunge, according to the Bureau of Labor Statistics today.
It’s the historic plunge in durable goods prices that has done the heavy lifting in bringing inflation down this year. But durable goods prices aren’t going to plunge forever from the pandemic spike. Services inflation, though it has come down from the red-hot zone, remains high.
Moderate Inflation Returns in July
by Alexander W. Salter
The American Institute for Economic Research
After slight deflation in June, prices once again ticked up in July. The Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.2 percent last month, for a year-over-year increase of 2.9 percent. Core CPI, which excludes volatile food and energy prices, also rose 0.2 percent on the month, and has risen 3.2 percent year-over-year.
The annualized monthly inflation rate was 1.9 percent in July. The annualized monthly core inflation rate was 2.0 percent. Taken together, inflation appears to be in line with the Federal Reserve’s official 2-percent target.
Shelter prices saw the largest increase. They rose 0.4 percent on the month, “accounting for nearly 90 percent of the monthly increase in the all items index.” The estimated increase in the shelter component of CPI, however, likely reflects price pressure from a year or more ago. As Treh Manhertz at Zillow shows, “annualized changes in shelter CPI can remain elevated long after rent price growth cools.”
July’s Food Inflation Leaves Families Hungry for Relief
by John Carney
Breitbart.com
The Unwelcome Return of Food Inflation
Just when you thought it was safe to venture back into the grocery stores, food inflation is roaring back.
The producer price index (PPI) for food rose 0.6 percent in July, the biggest increase since February. Annualized, this amounts to a 7.6 percent rate of food inflation. The index tracking finished consumer foods also rose by 0.6 percent following a 0.4 percent increase in the prior month.
There were some very steep increases in prices that American families likely noticed in July. The prices of fresh fruits and melons jumped 10.3 percent. Beef prices jumped 7.7 percent. Pork prices rose 1.8 percent. Coffee prices percolated up 3.3 percent.
Can Elon Musk Save the U.S. Dollar?
by James Hickman
Schiff Sovereign
I was one of the millions of people listening to the live conversation last night between Elon Musk and Donald Trump.
And if you missed it, Trump was Trump. You pretty much know exactly what you’re getting with him, and there weren’t any major revelations.
Elon, on the other hand, came off as a genuinely concerned citizen who recognizes the problems facing the country and is exasperated why the people in charge aren’t implementing common sense solutions.
Honestly, I feel bad for the guy; Elon is blasted as a hard-core, right-wing nut job… and there are people who literally want to put him in prison because of his views.
But last night he said things like:
Bidenflation Brings Black Philadelphia Woman to Tears During NBC Interview
‘They’re killing us without killing us,’ says Pennsylvania resident.
by Infowars.com
Info Wars
An NBC News segment featuring a focus group of black voters from Philadelphia, Pennsylvania, revealed just how much Democrat-driven inflation is harming American citizens.
Asked how hard inflation is hitting her, one woman said, “It’s me hitting hard. I blame the federal government at this point.”
She explained, “If a working class mom who works as a paralegal cannot buy a $2 bell pepper because it’s now $5, imagine a mother living with food stamps. Imagine a mother working minimum wage trying to feed children. They’re killing us without killing us. If you understand that. They’re killing us without telling us they’re killing us. They’re hurting people in ways that they can’t help themselves.”
U.S. Consumers Are Driving Down Inflation by Refusing to Pay Higher Prices
A more price-sensitive consumer helps explain why inflation has appeared to be steadily falling toward the Federal Reserve’s 2 per cent target
by Christopher Rugaber
National Post
The great inflation spike of the past three years is nearly spent — and economists credit American consumers for helping slay it.
Some of America’s largest companies, from Amazon to Disney to Yum Brands, say their customers are increasingly seeking cheaper alternative products and services, searching for bargains or just avoiding items they deem too expensive. Consumers aren’t cutting back enough to cause an economic downturn. Rather, economists say, they appear to be returning to pre-pandemic norms, when most companies felt they couldn’t raise prices very much without losing business.
Buy the Same Stuff, but Spend More Dollars
by Jay Davidson
American Thinker
My bank’s bond portfolio is generating a greater yield than loans are. That is rare. A 525-basis-point increase in the federal funds rate in less than one year is very rare, too.
The Fed Reserve drove short rates up dramatically and inverted the yield curve. Fed fund (short) rates are higher than the index for loan pricing — namely, five- and ten-year treasury rates. Monetary Policy is crushing net interest income for banks. That strangles lending activity, which depresses new capital for business expansion.
Further, the Fed’s actions crushed business activity in a number of ways. It created uncertainty in the market. Investors and businesses are not buying or selling, so there is no lending. Velocity is zero.
Fed dabbling in MMT (Modern Monetary Theory: Q.E., or printing money) is devastating our private economy and condemning our children to massive debt.