We noted last month the inflation issues were not going to get better and indeed they are getting worse. The Bureau of Labor Statistics (BLS) has released the latest inflation data, and the rate of inflation continues to increase at an alarming rate; now at 5% year over year for all items.
With only six months of JoeBama economic policy hitting so far, the rate of inflation is now four times larger under Biden than it was under Trump policies.
Everything the Biden administration is doing is making things worse, and now we are seeing big drops in real wages as the inflation rate is far beyond wage growth. Under Biden inflation is massive and wage growth is non-existent. This is an exact reversal of the Trump-era outcome where inflation was low and wage growth rates were high.
Year-over-year price comparisons for regular unleaded gasoline are now +58.2%. [Table 7] Stunning increases in fuel. Natural gas is up 13.5%. The prices of durable goods like furniture are up 9.8% while the prices for washers/dryers have jumped up over 26%. Used car prices are up 29.7%, while every durable good is showing massive increases (appliances, clothes, furniture, jewelry, etc). Even televisions are up almost 5%, after years of continually lower prices.
The May increase in energy prices “was the largest 12-month increase since the period ending April 1980”, over forty years ago. Yes, with 28% increases in overall energy prices Biden is mirroring Jimmy Carter in the outcome of his economic policy (this is not accidental).
Food prices are also skyrocketing. If you have tried to purchase lemons, limes or citrus recently you would know the BLS measure of May inflation for citrus products at 9% is low considering what you are seeing right now. Things are getting worse. [Table 7 Has the Details]
The rapid increases in price for food and gasoline are hitting the middle-class hard. As this continues it will most likely have a downstream effect on more luxury items and durable goods (which also cost more). Spend more on food/gas and you might not be able to purchase that new furniture you wanted. Durable good inventories increase and manufacturing layoffs in those sectors begin.
Despite institutional investors purchasing homes, it will be very interesting to watch how the overall housing market responds over the next few months. If the trendline continues we should see a considerable softening in home sales, again depending on region, as the inflation hits the working class. However, the investment class will swoop-in and purchase homes, turning owners into renters…. Yes, the Great Reset includes exactly this dynamic.
With Biden facilitating the economic plans of the wealthy ideologues and global elites, middle-class Americans are being turned into serfs.
Elections have consequences…and stolen elections have even worse consequences.
….and stolen elections have even worse consequences.
So far, that remains to be seen. But SURE hoping those “worse consequences” are nightmarish for the enemies of We the People.
Apparently all that voted for Biden thought they were going to get free gas….housing etc.
No need to outlaw the private automobile.
Just make the price of gasoline ridiculous.
Electric cars? Electricity prices will also rise enormously.
And so far the effort to supply charging stations for electric cars has been anemic.
20% of people who buy electric return to gasoline. Why? No where to charge them.
And the far-left wants recreational travel and tourism sharply curtailed. First Co-Vid, now the price of airplane fuel (kerosene, mostly).
So easy. So easy.
The real truth about EVs is that our power grid can’t produce enough electricity for EVs to be used by everyone. TPTB know this. They plan to force most of us out of automobiles altogether – only some people will be allowed to have a private vehicle.
In the Great Depression of the 1930’s only the very wealthy could afford to travel. Most families couldn’t afford an automobile & dad walked to the local factory if he was lucky enough to find a job. Those jobs are in China now. What will happen to Americans when the Biden Regime ushers in the next Depression? People should think about that, as it seems this is what they have in mind for us. No one is this stupid at economics. This is DELIBERATE, and this is TREASON.
Buy your silver, ammo, and food now before it’s too late
I just got my long term food storage up to snuff last week and I am feeling much better! Ammo is still a tough commodity to get affordably. Good advice Bobby Ice. Prepared not scared.
Simply use a Latin phrase: “Void ab Initio.”
In every state, if you gain political office due to fraud – you never held that office. A contract made under duress or fraud “never existed.” Joe Biden is not and never was the lawfully-elected President of the United States.
The fraud that was perpetrated was ineptly done. In Fulton County, Georgia, we literally watched the crime take place on video cameras that the criminals forgot were up there. They also all forgot that real-time data feeds of voting results can be statistically analyzed … and that the data streams were independently captured “live,” thus allowing us to detect when the numbers were subsequently altered. Very soon, the results of physical audits will begin to prove what we already know.
330.3 million people are entitled not to be plaintiffs.
The real question is what happens when the audits do find Trump won? Do you think the deep state will acquiesce? Me neither.
I know a lot do not like Q but the reality is that next to a civil war the “plan” is our only chance out of this quagmire of fraud and deceit.
The know he won
They know we know Trump won, and don’t care since the FBI and DOJ are criminal organizations.
The trouble is since we have secret ballots, no voter can be linked to their vote. There were 142,188 voters who were ineligible for such reasons as being dead, prisoners, underage, and improper registration in Georgia. This was stated three days after the election when people checked the list of those who voted. Not even Jesus had the standing to have this heard in a courtroom.
Biden’s margin of victory was about half that amount.
Add votes changed in and by the Dominion crime machines and the Xeroxed ballots made by the Chinese to replace the Trump ballots that were shredded.
Be great if you had a link to a legal citation where the contract principle, which I have no argument with, is applied to a federal election, i.e. for President.
Yes, the constitution IMO over-rides the contract principle, as it specifically states how to remove a president.
Notwithstanding that, PDJT will not be re-instated due to the fraud being discovered. IMO, we need to focus on election integrity, and politics and get him re-elected in 2024.
If Senate’s decertify the election within their state well, that is the Constitution.
… they hurried up to certify the elections to sweep Trump under the rug… mission accomplished.
Fraud vitiates everything. The US Constitution is silent on the issue of fraud. The fact that a relatively recent amendment prescribes one way to remove a disabled president does not address the issue presented in the case of a fraudulent election.
This is not some sort of game where the winner is the first one to shout, “bingo!”. It matters if it turns out his bingo card was a forgery.
Proof of fraud cancels everything. Every one of Biden’s executive orders and bills from Congress that he signed will cease to be law. Any pardon he has issued will be canceled and it will be back in the slammer.
Impeachment DOES not substitute for contract law…it is the discipline policy for mis/malfeasance WHILE in office…the document that would precisely cover election fraud is the Declaration of Independence…but the COMMON LAW concept of fraud canceling contract requirements is certainly pertinent
More disturbing, is this administration as a whole, is inept, and devoid of ideas. From top to bottom, it excels at only one thing, incompetence.
They know exactly what they are doing. Believe me. They have been planning this for a long time.
The Obama gang is very competent at destroying the US. They are calculated and unwavering in this agenda. It is not incompetence at all when you see how effective they are. It is a level of evil ruinous hate we are not accustomed to.
DD
Perhaps, a better way to state it is, appearance of ineptness, by design.
JoeBama ran on being the Anti-Trump instead of ideas
Joe Biden was run as anti-Trump. Joe had little to do with it.
It’s a combination. It’s both/and. The puppet masters know what they’re doing, and part of the plan is to hire incompetent useful idiots like Blinken and Mayor Pete.
Exactly! People need to stop giving them the incompetence out. This is being done on purpose. They’re even telling us they are. See the Great Reset. This is just the mechanism with which we are forced into it.
”calculated and unwavering” ….exactly.
They play the long game…power is all they care about and it takes generations to fully implement. The inception started with Woodrow Wilson in 1913.
Unfortunately we earn an honest living, spend time with the family, go to Church and live a peaceful life. They do neither.
Their agenda is to pave the way to the mark of the beast 666, even though most of them are ignorant of that reality. However that will not happen until God allows it. We must keep resisting their tyranny.
Ephesians 6:12
12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.
Correct. Thousand thumbs up.
The creative evil is uncanny and unimaginable to those with a Judeo Christian moral ethic.
I’m no longer stunned.
I wish to be left alone so I’m not forced to unleash.
One other thing, funding and creating an even larger and smothering federal government of unpatriotic constitution burning, power hungry lefty elites….
When you are an organized crime family positioned to profit off of certain sectors that were fair priced before, you actually want high inflation. That is exactly what this whole administration is doing. They are creating free profits for the Crime Family.
Did you catch the Twitchy article where they showed the photo of Jill (not Dementia Joe) studying for the G7 meeting?
Sundance had an article right here, yesterday, on that photo!
https://theconservativetreehouse.com/blog/2021/06/09/you-decide/
I wish I could forget that.
But, but Dr. Jill is prepping for the G whatever summit! Hope springs eternal!
The grapefruit juice I’ve been buying has gone from 100% juice (mostly grapefruit, cut with apple,) to “juice cocktail” (sugar water with a little grapefruit pulp dragged through.)
My favorite loaf of bread just jumped a whole dollar per loaf. Not going to buy it anymore…
Gasoline in Naples, FL jumped 16 cents early this week, from $2.79 to $2.95. My favorite boxed rice dish went from $1.98 to $2.39 from last month. Mid-May a half gallon of 1% milk was $1.44 now it’s $1.55.
Unleaded gas is almost $5/gallon here in San Jose this week. $3.29/gallon when Biden took office.
All given to us by the most popular president in history B-B-B-Biden.
A child of five could have predicted this inevitable outcome of pumping trillions of non-existent digital dollars (aka “covid relief”) into the economy.
Yup!
And purposefully closing successful pipelines, laying off thousands of people, eliminating thousands of jobs in the midst of a pandemic, and destroying whole sectors of fossil fuel industries. I couldn’t think of a better scenario that spells …
D-I-S-A-S-T-E-R.
And it started in the early 2000’s when George Bush borrowed from the fed in order to give away stimulus money and then borrowed more for his wars. He ran up the national debt and then obama doubled it, Trump never really got the chance to curtailed it, o’biden kick it in overdrive. If it hadn’t been for cheep made in china products flooding into this country holding down inflation, it would have hit us under obama. The obscene amount of covid debt has completely overwhelmed any chance that the cheep china imports can keep a lid on inflation.
This is just the beginning, o’biden doesn’t have anything near the quality of an economic team that President Trump had. They will not be able to control this, it just may take on a life of it’s own.
Get rid of your variable rate loans and credit cards and pay off as much debt as you can. Have some cash ready for opportunities.
Under carter, US Bonds were paying 15%. It may be an opportunity to buy, but you will need cash on hand. At 15% interest on a treasury bill, your money will double every 5 years.
To achieve that you would have to buy at the peak rate. Buy now and you will lose your but, as the value of bonds declines as rates increase.
I’m completely in cash and have been since the election.
China First Joe knows exactly what he and his gang of criminals are doing. They also know there will be retribution, ( well at least his crimminals do- Joe cant tell if hes having a bowel movement) thats why they’re moving so fast in blowing out America. But they WILL pay.
If we’re looking for someone to blame, look no further than Jill Biden, Ed. D., today’s puppet master. We’ve already seen her prepping for the G7 meeting. We don’t get to see her tending to her doddering husband behind the scenes.
Dokker Jilliekins Bribe-em, N.C.M. (Non Compos Mentis).
The real blame goes to the corrupt GOP
And here I thought the Markets might turn this week as they started too, but I forget sometimes that this market is propping up the scumbag in chief.
The Correction is coming no doubt but the media and the Fed like to spin this BS!
Sad but true. This retired guy is watching his funds increase but doesn’t see that continuing much longer. It’s especially grating when you think that the creep Fauci makes in a couple of years what it takes hard-working, honest folks a lifetime of work to save.
Thanks, Dems.
“However, the investment class will swoop-in and purchase homes, turning owners into renters…”
My in-laws, who bought their home for 220,000 in 2013, put it on the market for 450,000 and an investor called within a week and offered 30,000 over the asking price. They are taking the offer.
It makes me wonder what’s going on. Who are they going to rent to? Is this how they will destroy the suburbs? Can they turn these homes into section 8? Families certainly cannot compete with investors who are willing to pay a half million dollars for an average suburban home. Makes me a little uneasy.
Any landlord can decide to rent a residential property to Section 8 voucher holders if the landlord is rich enough and willing to remodel the house after EVERY tenant. I mean re-drywall, re-floor, re-plumb, etc. Section 8 tenants are hell on earth to their “homes.”
Homes? You mean their manufacturing labs and professional sales offices.
hehehe. Thanks for the set up.
Oh, yes. ???
They are also demanding and difficult for their landlords.
They are also building new housing developments all over the country that are rental only, like apartments but single family homes. “You will own nothing and you’ll be happy”.
They are building a multi-housing unit up the street from our community, rentals only. They were turned down three years ago, but now are moving ahead with the building. We figured a few palms got greased. We are trying to buy land and get out of here before that happens. We are firmly middle class, so we have a lot of hoops to go through, but we want our own space. This is all happening so fast.
In Tallahassee, FL, they build huge apartment complex after huge apartment complex–I mean acres of four and five-story buildings where cow pastures used to be. Who will rent these cribs at $1400 a month for a 2 bedroom 2 bath unit? That’s nearly half of what I make a month!
Same thing in central VA. They are building more apartments then we have population. Why?
In North Scottsdale, Arizona in the past two weeks, the federal government took over an entire hotel, Homewood Suites, in a very nice neighborhood (tony zipcode 85253) right next door to the arguably best high school in the State and converted the whole thing into a “Migrant Detention Center.” There have been picketing protests, petitions and letters to the Mayor of Scottsdale and City Council ad infinitum but they refuse to listen. (Maybe they all have Dominion machines for the next election.) There is one lone security guard walking around.
What can go wrong? It’s not like the people there don’t all owe the drug cartels/coyotes for their passage which they could make good on by selling fentanyl.
There are many houses in the $700,000-several million dollar range in the neighborhood. Undoubtedly, some owners are liberals who consider themselves part of the elite. Can’t resist a little schadenfreude.
Could this be a way of destroying the neighborhood so they can scoop property up and turn it all rental? Rent some of those big houses to multi-families from Central America.
Boy, they are trying to destroy this country quickly.
I’m sure that the wealthy and Progressive libtards will be thrilled at the multi-cultural experience that their children will be ‘enlightened’ with in the local schools.
Before Trump sounded the alarm that Democrats are trying to destroy the suburbs via usurping local zoning laws & he issued an EO to stop this, the damage had already been done in CA. We were notified by our City that the state was taking over zoning ordinances, superseding any local jurisdiction over what will be built and where. It is clearly a plan to destroy the peace and safety of the suburbs . For example, there were plans afoot to build low income housing near the golf courses in the Pebble Beach area, which relies on tourism for its economy. There are already gangs and crime starting to encroach into the area, which if allowed to succeed, would be a threat to the tourist economy. Trumps’s EO put a stop to this Democrat scheme, but who knows what will happen to permanently alter suburbia now that the Democrat Communists are in power on the federal level & also have free reign locally in CA. It is clear that the Democrats want to destroy any chance to escape the squalor and crime they have created in most American cities even if is only for a brief vacation in a tourist town.
The American Community Survey (ACS) helps local officials, community leaders, and businesses understand the changes taking place in their communities. It is the premier source for detailed population and housing information about our nation.
https://www.census.gov/programs-surveys/acs/
Our family was hounded for two years to fill out this survey. The census takers were very determined to get into our home.
They wanted to know everything, and I mean everything, about your property and family. We fought them off with many letters, with legal and constitutional arguments, and had a few shouting matches with the census takers. One drove up our driveway in her oil dropping beater. We were sufficiently intimidating. with facts, to get her to leave.
You have a right to be more than a little uneasy. Combine illegal aliens, with no homes, and the “white supremacy” of having a home. The goal is to confiscate property backed by the mobs and the usual low info and IQ Democommunists.
When I gave birth to my first child, the nurse said they wouldn’t deliver the baby until I told them all these things about my house: number of levels, bathrooms, bedrooms and what type of heat and AC did I have or not, etc. I was under extreme duress and the nurse was awful threatening not to take me to the OR until I gave them the info.
I lied about everything. I also happily lied to the census guy this year – told him I lived alone because I live in a blue state/city.
I live in a very close knit neighborhood. Most of us have lived here for decades. I warned everyone in the neighborhood about this today.
You are correct to feel uneasy. Any time you have foreign money manipulating American real estate markets you should be more than uneasy – you should be alarmed. Watch and see what happens to the blighted urban centers where liberalism has turned cities into 3rd world ghettos and then watch what happens to the suburban neighborhoods where these investors start.
I used to watch HGTV a lot and kept wondering why the home prices in Canada were so outrageously high. Then I read that the Chinese had swooped in, bought tons of residential real estate for jacked-up prices, and the market has remained inflated ever since.
You should be “uneasy”. They are going full bent in destroying America. My advice, if you wish to sell your home sell it. What you don’t do is buy another home right now.
Fangdog, I live in So Cal. My husband was murdered 8 yrs. ago. Took me a l-o-n-g time to recover. I was strongly thinking of putting my house on the market and moving back to Ohio, intending to buy. Please explain why not to buy another house now. I have very little knowledge base on such issues. Thanks in advance.
Nancy…see my comment above ^^^
If you have enough equity in your home to purchase Ohio real estate “free and clear” then inflation will not figure into your transaction.
However, if you come up short and require a bank loan/mortgage then waiting too long will be costly.
Not only will your cash-out money depreciate, lenders will demand an “inflation premium” be added to the subsequent loan. This forces interest rates higher and more of your loan will be allocated to pay interest at the expense of equity.
Housing costs are high in California and comparatively low in Ohio.
Selling high there and buying low elsewhere is a reliable means of remaining solvent.
Don’t wait until interest rates increase because it will result in fewer bids on your existing property and a lower sales price.
Also, don’t rely on free advice you get on the internet. (I’m lookin’ at *you* Fangdog.)
Hire a financial advisor, who will have the requisite training and experience to guide your decision.
Exactemundo.
Do it. Do not hesitate.
Yes NancyB (so sorry for your loss). I don’t understand not buying another home (before rates go up). You would be at the mercy of a landlord. Brutal.
Disagree…all Real estate is local.
Everyone needs a place to live…can’t say that about other RE sectors. My advice is to take advantage of the low rates and buy…not in a City but in rural locations yet close enough to medical centers…say within a 30 minute drive to hospitals. Also, look in low tax red states…TX, FL or even the south such as AR, Al, TN or SC.
Many Red states are also high tax now, sales taxes alone are ~10% where I live, on food and everything else.
That would be big mistake in inflationary times. The value of the property you should have bought will continue to increase. The value of the dollar you do not spend will continue to decline, perhaps drastically.
Wealthy George Soros made millions from the Dutch working-class neighborhood: ‘Vulnerable people are screwed’ | Living (netherlandsnewslive.com)
Even here in the Netherlands these Fed subsidized scrooges are making money at the expense of the working and middle classes.
The market is immoral. It tends to favor those who allready have a lot. There should be laws along the lines of: one person can not own more than a x-amount of money.. Or a company can not dominate a market like google does.
Or even better. The two companies that own everything: Blackrock and Vanguard can no longer own everything.
So basically, you favor socialism/communism.
Off course not..
I suggest you read Adam Smith’s the Wealth of Nations and tell me if you think Smith was a socialist/communist…
My son signed a contract to purchase a new house last October and closed in late May with a $150,000 in equity due to rising home prices where he lives.
My sister and BIL, in Truckee Ca, bought their house for 450k in about 2003.
They put it on the market this year for a cool million…someone knocked on the door and offered cash…they didn’t take it…they rethought selling the house for a while and have now put it back on the market for over a million.
Nice house, very middle class with some extras…. but no where near being a mansion or luxurious. I thought 450k was insane….little did I know!
All by design. Marxists need to destroy the middle class in order for them to seize power. It’s in their playbook. Question is when will we rise up and actually DO SOMETHING about it?
We did wake up in 2016 and they seize power via fraudulent election in 2020. The peaceful solution is to significantly improve the integrity of the election system and replace Marxists with MAGA via the ballot box.
Failing that, I don’t see unpeaceful solutions gathering the level of anger required until the financial collapse occurs, which also cuts off the ability of uniparty to pay for armed stooges to defend them.
They will still pay the US Military.
We are not going to rise up or do a damn thing or we would have already done it. We will live as they say you will own nothing and be happy and we are laughing all the way there instead of trying to stop it. Sorry to be a downer just very tired of we are going to…………and never do it.
Wake up America as Dumb and Dumber are destroying your country and making YOU pay for their incompetence and idiotic policies everyday!
This is what happens when you go with Cruella DeVille and Elmer Fudd as your leaders.
Buckle up! It is only going to get worse, a lot worse!!!!
I told all my family and friends the crash test dummy in the White House is going to drive the USA into a depression with sky high inflation.
Some earlier discussion about gas pricing noted that we were coming out of the shutdowns so demand for gasoline increased greatly, thus the price increases.
It was also explained to me that the prices went up so fast because the holders of oil set the prices at their “replacement prices”. Both of these explanations made sense to me.
Then I heard that gas prices were the highest they have been in 7 years (I’ve not seen verification of this).
This is coming off the U.S. noted as being energy independent for the first time in my lifetime.
It seems to me that there are things going on that are beyond the reasons for the market price increases noted above.
Is big oil sufficiently invested in “green” technologies such that they (and the American people) will allow themselves to be destroyed by the evil cabal?
I am an admittedly slow learner. Thank you all in advance for allowing me to share a branch on the tree.
Actually many prices are near all time lows priced in real Constitutional money.
https://pricedingold.com/
The issue remains though, because you can’t save excess currency purchasing power in the form of real money if your cost of living is growing faster than your income. The only choice is to reduce your lifestyle by lowering consumption.
Which is exactly what the Davos crowd wants, smaller populations (forced sterilization injections) and lower consumption among the survivors due to incomes not keeping up with expenses.
9.3 million jobs available?
during 2008/2009 the banks were bailed out but they did not lend this money out because they were afraid the economy was going to get worse.
is it possible that companies know the real issues and do not want to hire because things are going to get much worse?
is there going to be a cyberattack on the Financial banks?
hmmm?
Dunno. Here in FL, the entertainment and restaurant/bar industries are begging for workers. Meanwhile, I and workers like me who don’t even earn the average American annual income have to put fuel in our daily drivers and get our butts to work wearing clothes that we’ve been wearing (in my case) for ten years or more just to feed the greed of the elites and the lazy Americans who lounge around on benefits.
I can see a bad moon rising.
Its the little guy that owns a lot of the entertainment and restaurant business, so who is suffering?
The local owners of Billy Bob’s Oyster Bar and similar are suffering. Wages are stagnant in my area. And the people I talk with all day every day concerning their reemployment benefits want to cower under the bed because COVID (like they’ve been doing for nearly 18 months). Every one of the claimants has a billion pre-existing conditions and insist that they MUST keep cowering under the bed because CDC guidelines. Or something. It’s less stressful to get free money than waitressing or being a short-order cook or barback.
In 2007-08, they did not hire, either. I think you are on to something as we are approaching the end of many companies budgetary year. Taco Bell has all sorts of adds that they are hiring and advertising a competitive wage. This is an area with lots of teens, first jobs etc? Yet they ‘say’ their indoor dining room is closed due to lack of employees. The drive thru is a nightmare at lunch and dinner time, so bad, I don’t go anymore.
15 months ago, grocery stores cut their hours for the public, so they could clean and disinfect…yet I saw no evidence of said cleanliness. I believe it was a way to reduce payroll expenses across the country…in favor of globalists bottom line. Payroll is a big budget buster in business.
Zero Hedge ran an article about “shrink-flation” and used the candy bar as an example….shrinking sizes AND raising prices at the same time. I think we’ve been ‘had’.
I think this is a double edged sword.
I agree.
I ran my own contracting business for years and started noticing that homes that were built on 1/2 acre lots were soon divided up into 4 homes on that same 1/2 acre lot. They sold these homes using the narrative of maintenance free.
So yes, shrink-Flation is exactly what has been going on. Pretty soon you’ll have to add an engine to that brand new car you buy for $30,000, with add-ons like the engine for an extra $15,000. Of course I’m kidding but I wouldn’t be surprised.
real yields are -3% on ten year U.S. Treasury. There was a post yesterday about reverse repos which are overnight loans but the banks are actually loaning money to the fed. Fed is paying 0.00% on 1 day storage of cash. That overnight rate would be negative unless Fed propped it up to zero.
If rates were to go negative in reality the Fed would be liable for the interest on an $8 Trillion balance sheet of Treasuries. I bet you a dollar they wouldn’t pay it though. The Government bond market is telling the Fed to raise interest rates. But I am pretty sure the are trying to fail the U.S. dollar to introduce their own Crypto currency.
A digital currency is coming but it will not be Bitcoin or central bank maintained. This is also a reason people are buying houses. They are converting depreciating U.S. Dollars to real estate.
This is not a recommendation but I prefer silver. Physical Silver
My understanding is there is concern on the interbank rates dropping below 0% which is due the later half of 2021, June? I can see that the FRA-OIS seems good but…
They have too much cash and have to reserve some or park it at the Fed. Fed doesnt want negative rates in America. Germany was at -.65% for last 2 years and U.S. at +2%. Why? we are a better credit. Fed is subsidizing global yields from the U.S.
BTW Trump authorized up to $1 Trillion/ day and yesterday Reverse Repos was s 500 B still some room but something to watch.
Right, my understanding is the cash deposit at the banks is already topped out on balance sheets and therefore creating a reverse repo situation. Plus the banks have regulations placed on them that supposedly won’t be able to accept more deposits.
Yes, I knew about that but the Fed has “Tools”, lol…
we are in for a world of hurt I think.
A re-read you question . And I dont think I did a good job answering it the first time. The forward rate (FRA in your comment) is a 3 month rate that replaced LIBOR. The OIS is overnight swaps. Like repo rate. The FRA-OIS spread is the difference between overnight and 3 month yields
Overnight stays pretty stable 0.00%-.005% what moves is the FRA (Forward rate) and the lower that number is the higher the liquidity in Cash markets
Yes, that’s the way I understood it. I think the article I read back a few months talked about this exact situation with the interbank lending and I also noticed that the Intercontinental Exchange, the authority responsible for LIBOR, will stop publishing one-week and two-month USD LIBOR after Dec. 31, 2021. All other LIBOR will be discontinued after June 30, 2023.
is this a concern?
Trading Futures I understand fully, but when it comes to these type of situations is where I get a little foggy.
so I appreciate you taking the time explaining this.
The Fed used to take high interest rates till Ronald Reagan. Then they increased the deficit and lowered the yield. I think Long Term Capital (1998)really spooked them and that they(the Fed) lost it in 2008 and have not recovered yet.
Fed is in it for themselves and not here to help us. They are toast. You might research quantum financial system
I most certainly will, thank you.
I think they finally realized that no matter how much money they throw at the markets, it’s the confidence in government that drives the economies of the world.
and clearly, we see it playing out. Just like Europe, negative rates and still nothing.
so yes, they are trapped.
again, thanks for that info and I have it up ready to explore. QFS…
Silver cast in hollow nose increments, perhaps.
Man I so appreciate this site, and for so many reasons.
As a Canadian neighbour my perspective is understandably different from the average American.
While Silver is a “ good hold” one would be advised to remember what happened to its price when the Hunt family tried unsuccessfully to “ corner” the Silver market.
Suncor Energy a large heavy oil producer located in Alberta has soared in value since “the fraud” was given the keys to your W.H.
Suncor must have contributed to your fake Presidents campaign
A previous poster mentioned a relatives house sale.
We have owned properties of different types here in Greater Vancouver and Vancouver Island since the early eighties, and have witnessed several massive swings in property values.
However we have never witnessed anything like these last six to nine months.
CTH readers may be interested to hear that Americans that shrewdly ( IMO) bought property on Vancouver Island shortly after your scam election not only have seen an appreciation of maybe 30 to 50% in their property.
But the U.S. dollar has depreciated by approximately 15% since their purchase.
Who, other than CTH readers would have believed we could see such a rapid shift in sentiment.
Cheers to all, and God Bless PDJT
What a great post I value this site too. So much. I am not recommending Silver. I think that what you referenced with Hunt brothers goes on today with the bullion banks in the city of London. The Rothschilds actually set the price of Gold and used to do so every afternoon at 4:05. Right now the price of an ounce of Silver is around $27 to sell and $33 to buy. That spread means it will go up or down in short order. I happen to think up for many reasons but I cannot recommend things to folks I do not know.
But I will type out a story.
Two farmers lived a ways out in the country. The one farmer told his neighbor that he would sell him his old horse for $200,000 and that he wanted to buy it right back for $200,050. The next week a certain farmer had a $200,000 thoroughbred for sale.
That is what is going on in the PAPER Silver Market. I buy coins and rounds with my wife and kids. It is a great way to spend family time and you can invest for $33
Especially with Basel III finally coming at the end of the month and fully implements January 1, 2022.
100% now on the banks books instead of paper that was 50%.
QFS will be a metals backed currency I think. I do not have any express knowledge of this.. Tier 1 for Gold is huge but will free up even more cash.
I had one last thought for you the lower the FRA-OIS spread the more backwardation there is. It is a very short term yield curve.
?
see my just above regarding Fed and QFS.
Cheers,
My hunch is that many CTH readers grew up with very little by way of financial assets. Just as my brothers and I did.
As a result we appreciate money, and will have forever a sense of economic insecurity.
We still collect stamps, coins, invest in stocks, real estate.
Sure to make a profit hopefully, but just to stay up to speed and not get complacent.
Here in British Columbia we get 10 cents per used beverage container upon return.
We collect ours, a few of our neighbours and my retirement job helping a friend tidy up commercial/business parking lots ensures a paid for holiday every year?
“Waste not want not”
Silver is very manipulate by the World Bankers. Their current problem that they did not have with the Hunt Brothers is that a growing group of people trying to invest in silver for insurance for their families economic future have developed over that past 4 months. This group wallstreet silver on reddit have massively bought up like the Hunt brothers did the available physical silver supply. The price over the manipulated spot price by the bankers is $5-$12 elevated to take possession in your hands. The global storage facilities are being drained of the physical metal faster than it can be mined or replaced. (Hence the increased price for the real metal in your hand) Paper metal (Not backed by real metal only cash settlement) is pushed by the investor banks for purchase by retirement funds. Something has to give if the real metal can’t be obtained. Banks will have a hard time selling paper metal and the price of the real metal owned will have to Go Up to meet the demand of industrial users in this high tech Green deal world. Are you going to sell them your silver at the manipulated price?? Remember silver is one of the best electrical conductors, used in medicine, disinfectant, micro chips, batteries, and it is shiny.
And no one is mining it. I also think it will be part of good guys digital currency. Space Force put in 24 quantum satellites last year. These satellites will replace the SWIFT global payment system and ultimately become the network for worlds currency
precious metals have historically been an inflation “hedge” but do not pan out long term for a profitable investment….an old rule of thumb is an oz of gold will buy a decent suit at any set time holds true today as much as 1848
All the Physical Silver is gone.
You can buy it as Silver Rounds or bars from a reputable dealer for about $33. 99 % silver. All thoughs ETFs are going to have to get it somewhere. Not to mention J.P. Morgan. I am not in that business
No. If you want to buy silver, go with silver producing company equities that are increasing their reserves. Way bigger payout by multiples.
I am in that business and it is always smart to diversify and measure risk v reward, so a stock would be good. I cannot recommend a stock to purchase but i will tell you the silver ETF $SLV is all paper. I dont think the silver futures market is not in good shape right now
My god you are the first person to mention the Physical Silver asset that you can hold and store that has met the test of time in economic situations like we are entering. Paper and crypto are only as good as the paper or 011000101010 that make them up. Those of you who are concerned should go and learn a bit about silver on reddit wallstreetsilver.
I’m having a real hard time viewing the 12 month numbers on meat products as anywhere approaching reality. Given what’s gone on in government in recent times, I’d encourage a healthy sense of skepticism.
Regardless though, I see the target demographic similar to the bio-weapon operation, older/disabled/infirm on fixed incomes. The working middle class can adjust through reallocation of assets and earning power, feeding the Communist beast in the process. They still have value. Will they be affected? Sure. Will the effect end in their demise? Doubtful.
IDK, eugenics of a different sort? I’ve been around since Eisenhower and IMO this is unprecedented in my lifetime, in total. God be with us.
You should be very skeptical of the government’s official numbers because its completely in their best interest to understate inflation.
Second I recently repriced my bulk stored foods, from 2011 until Now, same stuff same amounts. The inflation rate is 6.3% per year for food, even though the price of many of the bulk food items on the exchanges are near flat.
That is another part of the inflation number beyond just currency expansion. Namely the rise of food Cartels parasites that sit between the producers (flat prices) and consumers (faster than official inflation prices).
Some of the items I buy from the store went up 30% immediately as Biden Stole the WH in January.
It’s intentional, this what the Fed, the Treasury and globalist want. Those Fed rate decreases were easy and often, a rate increase seems an impossibility. One can only surmise they don’t want to control the money supply.
The $8 T of Treasuries on Fed Balance sheet was not paid for by the Federal Reserve or by the banks that bought the bonds from the Federal Reserve (Federal Open Market Committee – in NY Fed) . A trade desk manager or operations person (FOMC) called up the Treasury and had U.S. Bonds delivered as a digital credit. At maturity the bonds are simply rolled over. It was only a line item no money changes hands
The Federal Reserve is entitled to the interest on these assets. I guess it is 2.5%- 3 % average yield on $8 Trillion. That is $200 B per year. Twice what the most profitable company in the world makes, Apple.
it has been a scam since its inception and unconstitutional to boot…the US Constitution calls for CONGRESS to manage monetary policy…I have not seen an AMENDMENT allowing them to palm it off to another PRIVATE entity…what you describe is what they commonly refer to as “monetizing the debt” in the FED…it is virtual creation of money supply to float new debt
The Great Reset is ongoing.
That’s right, can’t “Build Back Better” unless you destroy everything first.
Thank joe and the DEMocRATs.
“Never was so much owed to so few”: Every aspect of America’s economy, culture, global respect, and basic human dignity is being damaged by a small cabal of progressives, freakshow dropouts, and America-haters of every stripe.
I know I’m going to sound like a racist, but Congress has been abdicating their power for decades. The structure of our government is at a point that it is legal to confiscate property, 4 th amendment is run over and the so called president is a king . When tar and feathering became a crime was the first encroachment against the citizenry. The last five months have been hell. Inflation is the cherry on top . All of our politicians are spineless and have worried more about re-election than duty to God and country.
money is their god and they steal it from the country – it may be the most inclusive act by any group in history. Nary a pocket goes untouched by these cretins of theft
It does not hurt THEM. That’s the reason they don’t care. That’s the reason they decided on a career in politics in the first place.
inflation is and has always been an official policy of the illegal FED…their stated objective is to keep inflation to an average level of 2% a year…this is a hidden tax that has eroded 98% of purchasing power since their birth and it is planned that way….it is easier to steal taxpayers’ financial wherewithal stealthily through inflation than through a public gesture of raising taxes
All in accordance with the DNCCP plan…
Real estate bubble? What happens if interest rates jump?
On top of this our installed President Jill Biden has plans for Trillions more in Government spending.
Clowids& Pivens (spelling?) have as a part of the transition from capitalism to socialism a societal collapse by way of bankrupting the nation….again it is a design feature and is no coincidence
“What happens if interest rates jump?”
The stock market crash of 1987 will couple with the real estate crash of 2008.
The resultant baby will be uglier than Rosemary’s.
Isn’t it interesting, this is Exactly what our Communist Enemies Would “Wish” to happen.
Was anyone really expecting any other result from a man with almost 5 decades in public office who accomplished absolutely nothing other than lining the pockets of his family members? More so now in his decline state he is a puppet of his handlers. He and his detestable wife are there simply to bask in the glory of the office. What about his cabinet? His transportation secretary is conspicuously absent likely more concerned with “pride month”and telling religious people what they should believe. What about his economic advisors? They’re saying this is transitory and full steam ahead on the profligate spending agenda. What about his DHS director and VP un charge of the border which affects jobs and wages? Lip service while another record month of illegals flooded over the border? What about the Fed? Artifislly low interest rates forcing higher inflation. Deuschter Bank today is expressing a lot of concern about this level of inflation and conditions abroad. Meanwhile we have Biden and his wife telling us climate change is the big problem and a VO ar home being openly contradicted by Latin presidents she just met with. I believe the globalists can5 believe their luck right now.
Another theorem I’ve been stewing on concerning the homes being bought by BlackRock and other investment groups; they are doing so under the guise of moving folks from inner cities to suburbs to change the electoral landscape in those areas.
All the dems concentrated in the same housing project in the Bronx is no good to them. Move some of them to a suburb in Florida, Texas or Arizona and now some CD’s might get flipped.
It never ends their scheming.
How do they get to the retirement accounts of Americans, without going directly to the retirement account of Americans?
Purchase the houses then take federal loans against 80% of the value, then drive the system higher, then collapse the system and take the bailout money.
You are spot on! They tighten and loosen supply as they see fit then buy on the cheap or repossess when there is no money in the system. They also spark off wars and conflict to increase government borrowing
If anyone would have told me this when I was in business school i would have scoffed at them. Now if someone tried to convince me the other way I’ll think they are a nut
First I would like to say that I never thought i would have Sundance respond to one of my comments. You have been doing this so long and no one does a deep dive better. I hope I am adding some value to the comment section. Don’t do it enough as I have young children at home. You do a great job and even my wife now reads The Last Refuge everyday and shares it with her coworkers.
If you do see this I just want to say thanks for doing all the work you do in helping to educate, share and make us laugh almost daily. You are a good American and person Sundance.
he is on here pretty regularly…other than his large investment in time to research and source his articles I think he is a lurker and responds when the need suits him
Sundance,
I read the book The Rise of America: Remaking the World Order” by Marin Katusa, a natural resource investor/mining expert. He has an interesting take on the Dollar. Through SWAP lines, the US government is able to dictate what other countries do on policy terms. He divides those into SWAP+ countries, those with a SWAP line with the Fed and SWAP-, those that don’t. These SWAP lines essentially allow the Fed to back the SWAP+ countries central bank through the infusion of dollars.
Katusa describes the 2% inflation as being grabbed out of line air by the New Zealand Reserve bank which had high inflation (7.9& in 1989) and wanted to bring it down to 2% – the historical gold mining annual growth rate from 1834 to 1971: that’s where they got 2%.
He thinks we’re heading into a deflationary environment with some pockets of inflation which he terms a crossflation environment. The velocity of money was 2.198 at its peak in 1997. It was 1.374 in the 1st quarter of 2020 and hit its all-time low of 1.104 in the 2nd quarter of 2020, and the 3rd quarter ticked up to 1.146. The velocity of money has been trending down since 1997.
Deflationary areas he discusses are slowing population growth: China is peaking soon and will end the century with about half the population they have now where the US will only slightly decrease from ~360 mil to ~330, the baby boomers spending less, savings rate increasing is deflationary.
It’s an interesting read. He firmly believes the Fed and Treasury are going to move from Fiscal Monetary Coordination (FMC) to MMT (Modern Money Theory) where the Fed can’t have any “debt”. He said it’s not a matter of wanting it or not, but knowing that’s where the puck will be and how to make the most of it.
Our problem is the consumer and corporate debt. Those entities need inflation – pay off/down debt with more dollars that are easier to get – and deflation would be disastrous in that they would have fewer dollars to service the debt. It’s an interesting predicament.
In the long run, I believe we will prosper as a nation if we can rid Washington DC of the swamp. What that will take is the unknown. I’m sure we all prefer being able to take the country back through elections. That may or may not be the case. Hope and work for the best while preparing for the worse.
We need some breakthroughs in the ongoing election fraud cases and audits, but we also need to focus on winning every single off-cycle and midterm election at the local and state level in 2021 and 2022.
the proposed wealth tax also gets at unrealized stock gains that would impact mutual fund holders as much as large corporate investors…they hit you with a tax for your market”profits” before you have even sold them or locked in that gain
Don’t buy stocks on the last trading day of the year (they’ll coordinate the devaluing to reduce paper profit). The first trading day of the year would be when to buy.
As we know, the lib billionaires don’t like paying taxes.
In case anyone already doesn’t yet, THEY, is Obama.
Doesn’t know.
Every policy this illegal occupant of the White House has done is to intentionally destroy this Nation. In courage abortion and replace with illegals to replace Patriots.
Borrow money they can never be paid back, increase taxes to the maximum, give money to every country, waste money like it’s water.
Destroy the schools and dumb down students with racial studies, class warfare, Earth studies and other BS.
Destroy jobs,close down industry and replace with service jobs with low wages. Negotiate create agreement where America loses everything and export your jobs to China our number one enemy.
Keep God out of everything in schools, churches and destroy morals, destroy the Military and replace Patriots with scum that hates American. (That way they will shoot the American people when they are reduced to servitude and begin to rise up!
The communist haters of everything good want to destroy the planet and please there father Satan not knowing that in the end Satan will destroy them. Because he hates God and God died on the cross for humanity and paid for our Sins with his blood. That’s how much God loves the humans that he died on the cross so that we may live.
America has always known freedom since the beginning I do hope that we take back this country and get rid of the communist but who knows.
Meanwhile Black Rock is buying up all the single family homes for over asking making it impossible for the middle class to buy homes.
Still think this isn’t happening on purpose?
Strap on to your seat belts. This is the aftermath from the pandemic that was used to destroy Trumps economy. As usual no heads will roll.
People need to remember the point that Comrade Obama had 8-years plus some help from the end of the Bush II administration to create his economic disaster of pre-election 2015-16.
Sock Puppet Joe’s pen and cell phone have been used to re-set clock to Obama’s 2015-16 disaster in just 6 months. The shock to the main street economic system of such a rapid change could take us back to the hyper inflation and unemployment of the 1970-80’s.
We need to get the Joe-ke and his administration out of the WH NOW!
All by design. They must destroy America to implement their New World Order Tyranny.
The cabal knows their time is short. The Great Reset is facing the Great Awakening
People are on to their evil.
Who do I have to write a strongly worded letter to?
Armalite
/s
Regarding the wealth and housing prices, this is a great read to help those understand the BS coming from the Fed and BLS.
https://mishtalk.com/economics/how-the-feds-inflation-policies-benefitted-the-top-1-in-pictures-part-2
The people has fantasy of socialist/communist system will wake up until their belly tell them so. Very sad.
…….will NOT wake up until belly tells them to….
The rule of “3” applies : Guns, Gold and Getaway.
Yet, the local “news” while “reporting” occasionally that gas prices are through the roof, NEVER follow through and ask the all important “why“.
Journalism is supposed to be: Who, What, When, Where and Why
But the local
newspropaganda machine is ignoring the why… of course.Democrat voters and sadly, some Republican voters, saw the Trump policies benefiting everyone. Not just little select special groups. Everyone. They saw lower middle class blue collar workers doing better than we’d done in many years. That was unacceptable to them. That is what they voted against, not mean tweets. And in their typical inability to think about consequences, they failed to realize that the economic policies they voted for were going to harm them as well. But they will accept it as long as people they hate get hurt.
Why the hell do People vote for Democrats. Its killing my Pocket pook. Trump Pompeo 2024
More and more I feel betrayed by President Trump. He claimed to be a “very stable genius” yet he failed to clear out the rats and traitors who had completely infiltrated his
administration. And he knew they were going to steal the election, yet he did NOT invoke his EO to deal with the TREASONOUS COUP! He slunk away to Mara Lago and abandoned us all to Obiden and his goons! Our Republic has utterly fallen. How can this much rot, corruption and pure EVIL ever be removed?
Posting grandiose statements, criticisms and complaints online will do nothing to overcome the Demons running our country into the ground.
This was a COUP! Where is our vaunted military who are ostensibly the last line of defense?! They’re too busy purging all Patriots from their ranks and making sure men can wear skirts and pretend to be women.
God alone can help us. But why should He? We, as a nation, have rejected Him.
60 million + aborted tiny souls cry out for justice.
We must pray, and beg for God’s mercy if we would see deliverance from the evil which is overtaking the world. ????
I hate to see Christians write comments like this because OTOH you claim to be a Christian but OTOH display a lack in faith in God’s sovereignty. He’s in charge. He allowed all this to happen. There are many secular/worldly explanations addressing your concerns, and they have been posted here ad nauseam, but a Christian with such questions should study God’s word and pray for wisdom to understand and accept God’s sovereignty then you might grasp what has happened in God’s world – not the secular aspects.
So the leftists plans are going along just as planned, only at a faster pace than they dreamed of!
His Fraudulency II already the worst President ever.
Only president we’ve ever known that was a guaranteed failure.
Joe B and porpaganda Democrat and Big Tech and fake news media are destroying our country and president Trump accomplishments,
Whadaya think libturds? Happy with your vote?
Sundance told us that Biden/Obama’s plan to destroy the U.S. economy is progressing as planned. At, this rate, it won’t be long. When people can not feed their families, crime will go up too.
You have a choice, fight back now or later.
At the minimum this is purposeful inflation as a method of dealing with dept. On a more sinister level it may lead to the great reset. Either way it is in fact stealing from the average Joe.
Commodities may be a safe harbor
Biden the “uniter” wants working class people to pay dearly for supporting Trump.