Biggest core CPI print MoM since September of 1981.
— Win Smart, CFA (@WinfieldSmart) May 12, 2021
United States inflation.
The trend is obvious. pic.twitter.com/UM8XBZs7Pt
— Daniel Lacalle (@dlacalle_IA) May 16, 2021
Or to put it another way: When in Doubt, Print Money.
Knowing about inflationary dangers, however, will not suffice. The threat of a loss of purchasing power through monetization of government debt requires concrete action. For this reason, several months ago, I initiated a cross-party discussion group to examine monetary policy and its risks and explore the scope that exists for a return to normalcy.
Interest rates are zero and the Fed is still buying $120 billion of bonds each month, directly financing part of Washington’s “war economy” debt issuance. It is persisting even though the broad M3 money supply has grown at 24 percent over the last year. It is downplaying all evidence of pent-up inflation as “temporary.” …
The University of Michigan’s gauge of consumer inflation expectations over a five-year period jumped, fuel for an ongoing inflation debate.
The headlines last August and September blared: “Trans-Pacific rates are going crazy.” “Rates are on fire.” “Records shattered.” Oh, what cargo shippers would give to get the rates they paid eight or nine months ago. Those earlier records were repeatedly shattered. It just happened yet again.
Dollar Debasement Makes Gold and Silver Shine – Craig Hemke : You saw the CPI at 4.25 %. Who in their right mind is going to buy a Treasury note at 1.65%? They will guarantee themselves a loss of purchasing power of 2.5%.