CPI jumps 5% in May of 2021, fastest since 2008

at this point it is kind of hard to believe the fed is still babbling about 2 percent inflation, i mean lets get serious about expectations , how bad would things have to be to get to that ? the govt could help by reducing regulation that stifles gdp but we also know that cant be expected .
 
So I just heard on the Peter Schiff show that the federal reserve lost over 100 billion in february. That has to be paid by the us treasury. Where are they going to get the money? Eventually from the federal reserve when they have to start printing again. What a house of cards.

Apparently this is the first time the fed has operated at a loss since 1915.

They're losing almost 40 billion a week.

https://fred.stlouisfed.org/series/RESPPLLOPNWW
 
Once they strip out the third world double digit food inflation probably still be at three times the fed fantasy target
 
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inflation in UK 10.4 percent , here Fed signals they have surrendered to the inflation they created and are signaling last 1/4 point hike is it.
 
"
US monetary policy has become too TIGHT – the Fed risks significantly UNDERSHOOTING it’s 2% inflation target"

It is therefore time for the Fed to acknowledge that monetary conditions have become too tight.
Another very important message is that the Fed should not become preoccupied with the distress in the banking sector. Rather, the Fed should do its job on monetary policy, and that job is to ensure nominal stability. If the Fed is doing that job well, then financial stability is automatically ensured as well.
I also believe that this means that it is now most likely that the Fed will not hike its key policy rate at its upcoming FOMC meeting later this week. In fact, it is likely advisable to cut rates right now. That said, I would much rather that the Fed communicated a proper nominal GDP level target of 4 percent.
Unfortunately, the Fed failed massively on the overly easy side in 2021-22, so it is now impossible to bring back NGDP to its pre-2020 4 percent trend without a massive US recession and global financial crisis.
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image-1.png


The Two Year Treasury is at 3.825% and the Fed Funds rate is 4.57%. https://marketmonetarist.com/2023/0...icantly-undershooting-its-2-inflation-target/
 
Ya , doubtful we see 4 percent gdp. The govt has killed gdp , they could bring some back with massive deregulation but they wont in fact they will regulate more.
 
oyarde said:
Ya , doubtful we see 4 percent gdp. The govt has killed gdp , they could bring some back with massive deregulation but they wont in fact they will regulate more.
Click to expand...

He's talking about nominal GDP, not real, which had been running over 10%. It has dropped to around 7%. He's saying the ideal would be to make 4% nominal as the target. Would keep inflation low and have macroeconomic stability.
 
With trump indictment he will surge to largest leads ever over desantis . Opening the way again for dem mail in victory since nothing substantial has changed . Should be some upside to gold , silver needs about a twenty percent increase in investors to move up into more realistic territory of course one more bank could do it . APMEX sold over 100 million in bullion the week following first bank failure. Inflation could remain fairly stable rest of yr , wouldnt expect much in the way of GDP , fed probably stops where it is. Seeing no upside to FRN's , energy prices likely to keep rising in future. Still an increbible amount of lower value FRNs sitting around out there doing nothing . Local coin shop 40 percent increase in sales in sixty days , Feb 01 trough Apr 01 over last years sixty day avg.
 
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Ya the food inflation cant be stopped . Eating out up 9 1/2 percent , groceries up 8 1/2 percent. Costs of living in the third world with a shit currency. The working poor will have another tough winter coming
 
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Two of the tings that allowed even lower income Americans enjoy a higher standard of living in the recent past was cheap energy and the fact that they needed to spend much less of a percentage of income on food than other third world countries . Those advantages have began to evaporate quickly . Dont look for them to come back at this point.
 
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