from New Money
Vance: When Trump Imposed Tariffs, There Was Low Inflation
by Pam Key
Breitbart.com
Republican vice-presidential nominee Sen. JD Vance (R-OH) said Thursday on CNBC’s “Squawk Box” that when then-President Donald Trump imposed tariffs, it did not cause inflation.
Vance said, “So one of the classic examples that economists use to attack, or some economists, I should say, use to attack Donald Trump’s economic policies is the tariffs that he imposed on washing machines and other dishwashers — sorry, on dishwashers. So they show a chart that says, well, look, a few months after this tariff, the price of dishwashers went up a little bit. But if you look over two years, actually the price of dishwashers went down. You induced a lot of American factories to invest in American workers and American-made products. And the price of dishwashers has actually lagged behind the price of a lot of other home appliances. So sometimes when you induce investment and capital formation in the United States of America, it does lower prices on American workers.”
Fact-Checking Donald Trump On the Scale and Causes of Inflation Under Biden, Harris
Trump inaccurately claimed Harris cast a vote that ’caused the worst inflation in American history, costing a typical American family $28,000’
by Louis Jacobson
Poynter
In his bid to regain the White House, former President Donald Trump has hammered away at the Biden-Harris administration for its inflation record.
During a Sept. 7 rally in Mosinee, Wisconsin, Trump said that as vice president, Kamala Harris — his Democratic opponent — “cast the tiebreaking votes that caused the worst inflation in American history, costing a typical American family $28,000.”
Republican National Committee spokesperson Anna Kelly told PolitiFact in an email that the spending initiated under the Biden-Harris administration was something that “even liberal economists warned would cause” prices to rise, linking to a few examples.
Gold and the Death of the Dollar
from King World News
Today one of the greats in the business that predicted at the beginning of 2024 that this would be a huge year for gold spoke with King World News about gold and the death of the dollar.
Gold And The Death Of The Dollar
September 14 (King World News) – Gerald Celente: “I said gold could reach $3,000 this year. And this is just the beginning by the way. You know you’re not seeing gold take these deep dives anymore. Central banks are buying up gold like no tomorrow because they know the whole thing is rigged. Look at the news coming out on the debt level in the United States and what it’s costing to service the debt. Who could get away with this kind of crap? Who could ramp up all of this debt and keep getting away with it? The interest payments on the national debt top one trillion dollars as the deficit keeps getting deeper and deeper. The only people that could get away with this is a crime syndicate! None of us could do this! This is the beginning of the death of the dollar.
Vast Majority of Texans Say Food Costs Rising Faster Than Income
by Olivia Rondeau
Breitbart.com
The vast majority of Texans said their food expenses have risen faster than their income, and nearly half have had to forego buying protein and fresh produce in a recent survey.
No Kid Hungry, a Washington, DC-based nonprofit group operated by the organization Share Our Strength, shared the difficult findings in their Texas Hunger Survey released last week.
A whopping 81 percent of the 1,133 respondents polled in late July said the cost of food is increasing faster than their income, and 76 percent said that affording groceries has become more difficult.
About half of the respondents (49 percent) said they have been buying less protein or no protein at all to remain within their budgets, and 43 percent said the same about fresh produce.
How the Economy Really Fared Under Biden/Harris and Trump – From Jobs to Inflation
The economy will be a hot-button topic in Tuesday’s presidential debate, with Vice President Kamala Harris likely to emphasize the Biden administration’s jobs record while former President Donald Trump hones in on inflation—but the truth lies somewhere in between Trump and Harris’ claims, as Trump and Joe Biden navigated the pandemic’s unprecedented effects.
by Derek Saul
Forbes
[…] The Tuesday evening debate, moderated by ABC News in Philadelphia, will pit Harris and Trump directly against each other for the first time this cycle, with the economy slated to be a major topic of discussion. The U.S. economy sits at a potential inflection point, with slowing job growth causing fears about the possibility of a recession, while the Federal Reserve is expected to lower interest rates later this month for the first time in almost four years, a growth-friendly move as lower borrowing costs stimulate consumer and corporate spending. Harris’ economic record is a bit of a mystery, though she has backed policies like taxes on unrealized capital gains for the wealthiest Americans and a ban on price gouging for grocers, both populist policies which have generated controversy for the potentially stifling second-order effect on growth. Trump’s policy ideas for a potential second term include big tariffs on Chinese goods, which economists believe could worsen inflation, and a promise to rein in government spending.
ECB Cuts Rates as Growth and Inflation Slow
by Reuters
Reuters.com
FRANKFURT, Sept 12 (Reuters) – The European Central Bank cut its interest rates on Thursday, saying lower inflation and economic growth were allowing it to take its foot off the brake slightly.
The second rate cut in three months marks a gradual normalisation in the ECB’s policy after the worst bout of inflation in a generation forced it to jack up borrowing costs to record highs last year.
“Based on the Governing Council’s updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission, it is now appropriate to take another step in moderating the degree of monetary policy restriction,” the ECB said.
Services PPI Bounces Back in August From July, Rises Year-Over-Year. Core Goods PPI Jumps.
by Wolf Richter
Wolf Street
But a drop in energy prices had a soothing effect on overall PPI, which also accelerated, but by less.
The Core Producer Price Index bounced back sharply in August from the negative reading in July that had been heralded as yet another sign that inflation was dead. So inflation is not dead. The bounce-back was driven by the massive bounce-back of the Services PPI and, very interestingly, a spike in the Finished Goods PPI.
“Core” PPI jumped by 3.9% annualized in August from July, seasonally adjusted (blue in the chart below), driven by services (+4.6%), which dominate core PPI, and also by finished core goods (+4.1%), according to data from the Bureau of Labor Statistics today.
Will Gold’s Price Drop as Inflation Cools? Experts Weigh In.
by Aly Yale
CBS News
Inflation has cooled steadily over the past few months, and experts largely agree that the Federal Reserve will cut interest rates at its next meeting.
That’s good for consumers looking to take out a mortgage or swipe a credit card, but what about for investors — specifically those looking to buy gold?
To date, rising inflation has been a boon to the precious metal, sending the average price of gold to record highs several times this year. Will that run-up continue once inflation gets under control, though?
Don’t miss out on the opportunity to capitalize on gold’s price run. Compare your gold investing options now.
Core Consumer Inflation Accelerates, Pushed Up By Soaring Housing Prices
by John Carney
Breitbart.com
A key measure of consumer prices rose by more than expected in August, indicating an acceleration of inflation from a month earlier.
The Department of Labor said that core consumer prices, a metric that excludes food and energy prices, rose by 0.3 percent last month. That’s an acceleration from the July increase of 0.2 percent and above the consensus forecast of 0.2 percent.
Compared with a year ago, core inflation is up 3.2 percent.
A big driver of the increase in August was a 0.5 rise in housing prices. Compared with a year ago, the shelter index is up 5.2 percent. Other categories that saw significant price increases include airfares, car insurance, education, and apparel.
Moderate Inflation Affirms Fed’s Path to Easing
by Alexander William Salter
The American Institute for Economic Research
Price growth was moderate in August, the Bureau of Labor Statistics reports. The Consumer Price Index (CPI) rose 0.2 percent last month and 2.5 percent over the past year. On a continuously compounded basis, prices grew at an annualized rate of 2.24 percent in August. Core CPI, which excludes volatile food and energy prices, grew slightly faster at 0.3 percent per month and 3.2 percent per year. The continuously compounded annual rate was 3.37 percent in August.
Inflation rose slightly over the past two months, but not by enough to undermine the general disinflationary trend. Dollar depreciation is back within a steady range. The Federal Open Market Committee (FOMC) will likely infer from this data that it’s time to loosen monetary policy.