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Dec 10, 2021 - 12:30:12 PST
On October 12, Wall Street On Parade filed a Freedom of Information Act (FOIA) request with the Federal Reserve Board of Governors seeking the specific dates on which former Dallas Fed President, Robert Kaplan, had made purchases and sales in S&P 500 futures contracts in 2020.
Those Pushing Monetary Stimulus Are Misled by Japan's Low Price InflationDec 10, 2021 - 12:05:11 PST
Japan has been considered a leading example by modern monetary cranks of how running the printing press to monetize large-scale budget deficits is not likely to end up in high inflation. Yet they have not understood the fundamental and specific reasons why inflation in Japan has remained feeble during three decades of dismal economic performance. The recent spike in consumer price index inflation in the US and many other countries is clear proof that Japan has been a wrong example all along.
When revealed, it seems so simple that it may seem like nothing at all. But, when you think about the number of financial articles that denied inflation over the past year or that readily bought into the Fed’s huge “transitory” argument on the primary basis that bonds have not been pricing it in so it couldn’t be a threat, you realize how significant this blindspot really is.
The market is disconnected from everything. Throughout history, there are correlations you would expect to hold constant between the market, consumer confidence, and the economy. Currently, after a decade of zero interest rate policy, massive amounts of liquidity, and financial supports, the market has become detached from reality.
One strategy of avoiding default is to stop going into debt that you can never manage. Another (very odd) strategy is to keep going into debt and pretend that everything is OK. One strategy of halting rising prices, is to stop printing new dollars out-of-thin-air. Another (very odd) strategy is to keep printing dollars and pretend that everything will be OK. What the U.S. government is doing is very odd. Everything is not OK.
The latest seasonally adjusted inflation rate for November was .76% month over month, with a non-seasonally adjusted annual rate of 6.81%. These numbers were generally in line with expectations which have finally gotten high enough to match the blistering hot inflation numbers coming out every month. Remember in June when the Fed expected 2021 inflation to come in below 4%? December has not officially printed yet, but it’s safe to say the Fed was very wrong.
CBO Reveals Biden’s “Build Back Better" Plan Could Cost Over $3 Trillion: 'Not Free?'Dec 10, 2021 - 09:04:42 PST
Well, if anything has been confirmed by the last 24 hours, it appears the American public is done believing in fairy tales and is rapidly transitioning back to the real world.
Investors’ dollar positioning and views are the most bullish since 2015, buttressed by expectation the Federal Reserve’s hawkish pivot will translate into higher rates, according to a Bank of America Corp. survey.
Explosive economic growth spurred by pandemic relief programs is helping the states dig out of deep financial troubles.
The Federal Reserve is likely still on track to announce a faster pace of tapering at its meeting next week after U.S. consumer prices rose at the fastest pace in nearly 40 years.
Dec 10, 2021 - 08:19:11 PST
Already fighting economic fires on a number of fronts, China is rushing to clamp down on speculation in its strengthening currency before it gets out of control.
Brazil's real led losses among Latin American currencies on Friday as inflation slowed but remained around a six-year high, while uncertainty over a U.S. Federal Reserve rate hike, amid rising prices, kept most regional assets in a tight range.
Turkish policy makers failed to arrest the lira’s free fall with their third intervention this month as the currency quickly resumed losses amid an interest-rate policy seen as too loose by markets.
Dec 10, 2021 - 07:19:43 PST
While the cost of this legislation is astronomical, the so-called benefits turn out to be costs, too.
On my latest podcast, I lay out my case as to why things could get really interesting heading into the new year.
Gold gained on Friday as a rise in U.S. consumer prices in November boosted its allure as a cushion against inflation, despite expectations that the data may prompt the Federal Reserve's to hasten interest rate hikes.
Pretty much everybody now expects the Federal Reserve to go to war against inflation, but the central bank has a problem not many people seem to be talking about - an economy buried under debt. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about consumer debt levels and their ramifications. He also discusses central bank gold-buying and breaks the November CPI data live.
U.S. stocks rose after in-line inflation data spurred bets the Federal Reserve won’t have to accelerate plans to tighten monetary policy.
JP Morgan Predicts The End of Covid, A Strong Economy, And $125 Oil: OilPrice.comDec 10, 2021 - 06:15:41 PST
JP Morgan is very bullish about the global economy in 2022, a forecast that supports the bank’s earlier claim that oil prices may hit $125 next year
Inflation Surged 6.8%, Even More than Expected, in November to Fastest Rate Since 1982Dec 10, 2021 - 05:38:25 PST
Inflation accelerated at its fastest pace since 1982 in November, the Labor Department said Friday, putting pressure on the economic recovery and raising the stakes for the Federal Reserve.