from Wealthion
The Deeper Dive: Why the Fed’s Inflation Fight is Far From Over
by David Haggith
GoldSeek
The two major factors that gave a tiny drop in CPI last week were oil and softening housing price increases, removing earlier pressure. Apart from the decline/softening in those two items, CPI would have risen. Since those were the major items where softening or downward pressures helped the Fed out and gave stock and bond markets a tingle in the seat of their pants, I’m going to lay out what is coming in those prices, and it is not likely good for the Fed’s fight.
Getting crude about CPI
Oil, I’ve been saying, is more likely to rise right away, as the summer travel season gets going, than to keep falling. That is elementary because rises in price during the northern hemisphere’s summer is oil’s common pattern because travel in the summer by jet and by car and by RV and by ship all increase in the nations with the largest populations on earth and the most travelers.
7th Grader: Trump Popular Among Young People Because Biden’s Inflation Raises Candy Prices
by Alana Mastrangelo
Breitbart.com
DETROIT, Michigan — A seventh grader told Breitbart News on Friday that former President Donald Trump is popular among young people because the inflation suffered under President Joe Biden’s administration is causing candy, such as Airheads, to cost more.
“My friends love Trump,” Joshua Adler told Breitbart News of his classmates in Wisconsin while attending Turning Point Action’s “The People’s Convention” in Detroit, Michigan.
After being asked if he believes Trump has become more popular among young people in recent years, Adler said, “Definitely,” before giving an anecdote about how he and his classmates have been personally hit with inflation under the Biden administration.
“When I went to the sports center in Eau Claire, the Airheads, now they’re 50 cents,” he said. “They used to be 25 [cents], now it’s 50 [cents].”
The National Debt is Now So High That Every American Essentially Owes $100,000
We could grow our way out of our debt burden if politicians would just limit spending increases to about 4 percent. But they won’t even do that.
by John Stossel
Reason.com
America is now almost $35 trillion in debt. That means every American owes $100,000.
President Joe Biden’s administration doesn’t care. They want to spend more.
Already they are spending so much that they’re increasing our debt by a trillion dollars every 100 days.
President Donald Trump was no better. His administration increased our debt by almost $8 trillion.
This will not end well.
Don’t Let a Crisis Go to Waste in 2025
by Vance Ginn
The American Institute for Economic Research
As 2025 draws near, America teeters on the brink of a fiscal abyss. This impending fiscal cliff, marked by the end of tax cut provisions and a spending crisis, calls for immediate and decisive action by Congress to avert a worse economic situation than the one Americans feel today.
The national debt from excessive government spending is on track to surpass $35 trillion soon, a stark increase of nearly $10 trillion since 2020. This level of debt per citizen exceeds $100,000; per taxpayer, it is nearly $267,000.
Such figures are not just numbers but represent a looming burden that future generations will bear — a burden that transcends mere fiscal policy and ventures into the realm of ethical responsibility.
Fiat Currency System On Its Last Legs
by Sprott Money
Sprott Money
Welcome to “Commodity Culture,” the podcast where we dive into the world of commodities and their impact on our economy. In today’s episode, “Fiat Currency System on its Last Legs: Sound Money is the Only Escape Hatch,” we are joined by financial expert Andrew Sleigh. Andrew will shed light on the vulnerabilities of the fiat currency system and advocate for the adoption of sound money. Tune in as we explore the potential collapse of fiat currencies and discover how sound money could provide a secure financial future.
Get Ready for Skyrocketing Prices of Avocados
by Monica Showalter
American Thinker
Think prices are high enough at the grocery?
Well, they’re going higher, this time on avocados, that glorious Mexican delicacy so beloved by Americans on their toast, in their guacamole bowl, and pretty much everything else. Mexican avocado imports are a $2.8 billion annual industry, meaning, Americans like them a lot.
According to the New York Times:
Security concerns for agency workers have led the United States Agriculture Department to suspend its inspections of avocados and mangos imported from Mexico “until further notice,” the U.S.D.A. said on Monday.
Produce already cleared for export will not be affected by the decision, but avocado supplies in the United States, which mostly come from the Mexican state of Michoacán, could eventually be affected if the inspections are not resumed.
80% of Americans Say Grocery Costs Have Notably Increased Since the Pandemic Started, Survey Finds
New government inflation data shows the rate of price increases for food is subsiding.
by Lorie Konish
CNBC.com
The rate of price increases for food has subsided in recent months, according to the latest government inflation data.
However, shoppers still report feeling burdened by the prices they’re seeing in the grocery store aisles. To that point, within the past few years, 80% of Americans say they’ve felt a notable increase in the cost of groceries, Intuit Credit Karma reported last month.
Since the start of the pandemic, grocery prices have risen 25%, the report also found.
Some consumers have had to sacrifice necessities to afford food, the personal finance company found.
Americans Are Mad About All the Wrong Costs
Don’t complain about the price of a Big Mac. Complain about the price of a house.
by Annie Lowrey
The Atlantic
The Great Inflation is, thank goodness, over.
Four years ago, the coronavirus pandemic kinked the planet’s supply chains, causing shortages of everything from semiconductor chips to box fans. War and drought led to disruptions in commodity markets. Temporary lockdowns and a permanent shift away from offices altered consumers’ purchasing patterns. Families found themselves flush with government stimulus money. A tight labor market drove up wages. Those factors combined meant that families had more money to spend at a time when supply was constrained—and businesses took advantage. The price of everything went up, all at once. And for the first time since the 1980s, inflation became the central economic problem in American life.
Despite Fed Hawkishness, Recent Inflation Data Give Markets Hope
by Robert Barone
Forbes
The financial markets were “mixed” this week (ended June 14) with the tech sectors moving smartly ahead while the more traditional sectors lagged. The S&P 500 (+1.6%) and the Nasdaq (+3.0%) both closed higher. But the industrial stocks were flat to down as represented by the Dow Jones Industrials which were off -0.8% for the week. Year to date, both the S&P 500 (+13.9%) and the tech heavy Nasdaq (+17.8%) are up double digits while the industrial based Dow Jones is only up +2.4% for the year and is down -3.1% so far this quarter.
The tech heavy Nasdaq is hot because of the Artificial Intelligence craze, and that shows up in the S&P 500 in the Magnificent 7. As noted by Rosenberg Research, on a quarter-to-date basis, Nvidia is up +46%, the Magnificent 7 are up +15%, but the S&P 500 in total has grown just over +3%, and if we look at the “other 493,” i.e., S&P 500 ex-Mag 7, we see a negative sign (-2%)! That comes through in the Dow Jones Industrial Average which are off more than -3% year-to-date, indicating issues in the manufacturing/industrial space, and likely presages Recession.
Latest Inflation Data Provides Potential for ‘Even Greater Upside’ in the Stock Market Rally
by Josh Schafer
Yahoo! Finance
After a rough start to 2024, the latest inflation data may very well mean more fuel for the current stock market rally.
“Inflation falling continues to be one of the primary factors behind the bull market in stocks,” Julian Emanuel, who leads Evercore ISI’s equity, derivatives, and quantitative strategy, wrote in a note to clients.
On Sunday, Emanuel boosted his year-end price target for the S&P 500 (^GSPC) to 6,000 from 4,750. Emanuel cited the promising inflation path and the “early innings” of the AI trade when moving his year-end target to the highest on Wall Street.