Loading ...WARSH
LOOKS LIKE THE NEW BOSS IS NOT THE SAME AS THE OLD BOSS
HE IS NOT RELYING ON THE BULLSHIT CPI AND PPI WITH ALL IT’S MADE UP STATISTICAL TRICKS
LOOKS LIKE HE IS SWITCHING TO A REAL TIME ANALYSIS OF INFLATION REFLECTED IN THE WEBSITE
TRUFLATION
HERE IS THE TRUFLATION X ACCOUNT …EXPLAINS THE METHODOLOGY..BASICALLY THEY TAKE MILLIONS OF ACTUAL TRANSACTIONS DAILY AND DISTIL THEM INTO A DAILY UPDATING TRU INFLATION SCORE IN % SINCE LAST YEAR
SO CUTS ARE MORE LIKELY THAN RAISES IN THIS SCENARIO FWIW
Yes, how do we get a measure of true inflation…it’s doublespeak per George O at it’s finest. So, not only has CPI been understated all these years, which is what has driven many families to have to employ 2 parents just to keep up, but now TRUE Inflation saying it’s not that bad. I mean I knew they can’t raise because of the 38, soon to be 40 trillion US Debt, but this is hilarious. Wages have not kept up with cost inflation, every person struggling on the break even point can tell you that. So, more lies…it’s OK. They have to attempt to get out of this via growing the economy which requires low interest rates to goose the economy. The shell game will end badly if we raise rates 200 bps from here. So, this reaction is overblown. But, you have to confuse people on inflation as it is part of the real interest rates calculation. Inflation less interest rates = real interest rates. If you artificially lower inflation (via this scam of truflation graphic), then you can say real interest rates are negative…bad for gold. Who knows, all I know if commodities in the next 3 to 5 years is where I plan to be. Population, still growing, people wanting stuff for themselves, still basic human emotion. Rising population plus wanting stuff to live a real life plus AI race means demand for commodities which are undervalued versus paper. Ratio just reversing and trending back to norm will be highly profitable without mania kicking in.
Fake inflation numbers from a “new and improved” methodology!
“SO CUTS ARE MORE LIKELY THAN RAISES IN THIS SCENARIO FWIW”
With honest numbers being higher, higher rates would be called for.
And then, if you listen to his remarks, the 2% target rate for inflation is also bogus.
The Fed mandate was for a stable dollar. Not a stable rate of dollar value erosions.
So even higher rates then.
OR .. some of means of restraining credit growth. If that can be done without bursting it all.