Feds Don’t Have Inflation Under Control

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As we move through the calendar year, inflation looks like it slowed because the percentage is down. However, prices are still going up. Inflation continues unabated.

David Stockman writes: So the talking heads of bubblevision think inflation is abating, but what about this: Federal revenues in November posted at $252 billion—10.3% below last November—while spending came in at $501 billion. And the latter included an ominous +53% rise in Federal debt service costs compared to a year ago.

The Feds are acting as if inflation has slowed and are taking credit for controlling it. They do not have it under control.

The Feds raised interest rates by .5% today. It’s at a 15-year high, and Powell is likely planning higher rates in 2023, slowing the economy. Officials don’t see core inflation coming back down to their target (2%) until 2024.  The reality is they won’t make 2%.

The fear is that the Feds are willing to destroy the middle class.

Peter Schiff writes: The salient point is not whether #inflation has peaked (it hasn’t), but the unpleasant reality that inflation will not return to levels anywhere near 2% during the foreseeable future. This is the game changer for the #Fed. Most investors have no clue how to play by the new rules.

Inflation was 6.8% last year and it’s 7.1% this year. That means inflation is up 13.9%. Great job, Joe. All good news, right?

The BLS chart:

 


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GuvGeek
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GuvGeek
1 year ago

We are in Depression as Buying Power is down about 30% since January 2021. By not Stopping Inflation Cold with Monthly 1.5% increases, the Middle Class is dipping into saving since Inflation turns Cash into Trash. We are on a Train heading over a Cliff. By next Fall, the Strategic Petroleum Reserve will be empty and Middle Class Savings will be gone. Fuel will through the Roof next Winter and the Middle Class won’t be able to afford it. The Government will print more Worthless money in a relief effort and the USD will be in a death spiral by Summer 2024. As usual, the FED and Government are trying to save the Ultra Rich. They are too rich to go bankrupt.

Greg
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Greg
1 year ago

Federal Reserve raises interest rates. So who benefits. If ‘they’ set the rates then one has to assume it is ‘their’ balance sheet that benefits. So who are they.