Hot! Hot! Hot Core Inflation! Markets Crash! Biden Touts the Good News

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Shockingly, Biden claimed yesterday, “We’re on the right track in tackling inflation,” as prices for necessities soar thanks mostly to Democrat wild spending and crushing of the energy industry. He’s enacting all of the Democrat policies. It’s Demflation.

Stocks are tumbling, and disappointment is hitting markets worldwide Tuesday, following Wall Street’s sudden realization that inflation isn’t slowing as much as hoped.

Demflation is a tax on ALL Americans!
  • Gas Utilities are UP 33.0%
  • Electricity is UP 15.8%
  • Food at home is UP 13.5%
  • Transportation is UP 11.3%
  • New Cars are UP 10.1%
  • Food away from home is UP 8.0%
  • Used Cars are UP 7.8%
  • Shelter is UP 6.2%

— House Republicans (@HouseGOP) September 13, 2022

THE MARKET JUST REALIZED INFLATION IS NOT GOING AWAY

The Dow Jones Industrial Average slid 900 points or 2.8%. The S&P 500 dropped 3.2%, and the Nasdaq Composite sank 4.1%. Bond prices also fell sharply, sending their yields higher, after a report showed inflation decelerated to 8.3% in August, instead of the 8.1% economists expected. Big tech stocks swooned more than the rest of the market, as all 11 sectors in the S&P 500 dropped.

 Expect higher interest rates. That’s all Keynesians have. It will likely be a .75-point interest rate increase.

Mortgage interest rates are 5.8% now. Expect increases to kill the market.

The only reason gasoline is down is Biden’s temporary adjustments to bring gas prices down. The administration is robbing the emergency reserves until November.

THE SOURCE OF THE INFLATION

The source of the inflation is Democrat policies. It’s Demflation.

“They’re watching for where inflation is coming from,” said Quincy Krosby, chief equity strategist at LPL Financial. “It’s very clear to them that it’s food, it’s transportation, and it’s rent. Rent keeps marching higher. That is the most stubborn of everything the Fed is fighting at this point,” The Street reports.

U.S. inflation slowed again last month, data from the Bureau of Labor Statistics indicated Tuesday. Still, core consumer prices jumped higher, suggesting pressures have yet to peak in the world’s biggest economy.

CORE DEMFLATION – HOT, HOT, HOT

So-called core inflation, which strips out volatile components such as food and energy prices, rose 0.6% in the month and 6.3% in the year, the report noted. Both the annual and monthly readings were way off.

Core CPI, which strips out the more volatile categories like food and gasoline, measured 6.3% in August, up from 6.2% in July. The month-on-month gain of 0.6% was double what economists had expected.

The volatile gasoline category was the only area of the index to show a significant decline from July, dropping 10.6%. Almost all other categories saw price increases, including shelter, which increased 0.7% in August and is up 6.2% year-on-year, the largest increase since 1991.

“If you look at the underlying trend — I look at labor costs and rent increases — they both are pointing in the wrong direction and going up at hefty paces,” Sohn said.

However, food price inflation surged 11.4% from last year, compounding last month’s 10.9% leap to the fastest annual pace in April of 1979.

Within the jump in food costs, bread prices rose 2.2% and are up 16.2% from a year ago. Eggs surged another 2.9% and are up 39.8% for the 12-month period, and canned fruits increased 3.4% and 16.6%, respectively.

AND key services are exploding under Demflation:

THIS IS HERE TO STAY UNDER DEMOCRATS

MORE  DETAILS ABOUT DEMFLATION

The BLS said that inflation was up 0.1% compared to a flat July reading and a 1.3% increase in June, and the Street forecast of a 0.3% deceleration. Rents, food, and airfares were the biggest components of the headline increase.

Gas prices were a big component of the softer headline reading. The national average cost for a gallon of gas fell to $3.844 by August, pulling prices more than 25% lower from their early June record highs amid a run of 11 consecutive weeks of decline. The moves meant the energy component fell 5% from last year.


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Peter B. Prange
Peter B. Prange
4 months ago

Thanks for revealing just how horrendous are the “hidden taxes of the Dumb-o-crats. Or to put it another way, why do so many vote for Democrats to clit their own economic throats. Instead of real spendable income growing under Trump, (not to mention blacks released from unjust prison terms) the Democrat’s policies, which are effectively stealing from the poor to give to the rich while black o black crime increases.
Of course their are no numbers available (because much of their income is hidden) but my guess is that big city blacks in general are losing and blck Democrat politicians are the group with the highest rising incomes. Oh, and don’t forget the activists like the leaders of Black Lives Matter (tee! hee!) When does Stacy Abrams get all the money she spends?

GuvGeek
GuvGeek
4 months ago

If Republicans don’t take control of both houses in January, the economy is doomed and with runaway Inflation there will be no place to hide if your not in the position to go self-sufficient. That mean’s that over 90% of America is screwed. Even if Republicans take both houses there will still be inflation until the Energy Sector is revived; at the very least a year.

If Democrats keep control of the Government, they will likely deplete the SPR and when that happens gasoline will rocket to over $20 a gallon. Electricity will climb to over 50 cents a KW/h for most of the Nation. A reality will be that millions will starve, die of heat stroke in the Summer, and freeze to death in Winter. It will be the fault of the Liberal Cultist Democrats. Liberalism is a mental disorder! We are dealing with Psychopaths who stole control of the Government!

Peter B. Prange
Peter B. Prange
4 months ago
Reply to  GuvGeek

As usual, from this commentator, good stuff.