Inflation Raging the economy going off the cliff According to Mainstream Media, the raging inflation has NOTHING to do with the collapse in consumer confidence or 1.1% drop in retail sales. It's because of Delta! People are concerned enough to bother putting a mask on, but they stopped spending money. 1.1% retail decline in July. The Fed will pump this. Yet the Dow is bouncing up, to end the day green. It’s a joke and the emperor truly wears no clothes. 36K Dow by Friday. There is no bad news bad enough for a correction. What about valuations and the fed will have to tapper at some time. that machine that prints out the paper money( which inflation is eating up) will break down soon. The laws of economics is just like the laws of physics, "what goes up, must come down". The Fed is currently between a rock and a hard place. It cant raise rates to curb inflation because if it does, it will owe more interest to all of the bond holders of the outstanding debt. If they leave rates where they are or lower them, inflation will continue to rise. Its sure nice to know we have a smart, competent leader at the helm ! The Federal Reserve is keeping interest rates at artificially low rates through their monthly purchases (80 Billion of Treasuries and 40 Billion of Mortgage-Backed Securities). If and when the FED starts to gradually reduce their monthly purchases, then there should be an increase in interest rates. The FED knows that they are responsible the surge in equities and real estate. The FED also know that equities and real estate will crash without their continued intervention. How long will this intervention go on. Your guess is as good as mine. The fall in the rate is a function of the risk-off moves in the market, probably since the fed started floating QE tapering talk. Traders fleeing risk assets and moving into treasuries - more buyers so the seller can lower the price (the rate) and still make sales. Pretty simple. Hardly manipulated. If taper talk turns into hot air and it's back to risk-on and fewer traders want treasuries then this should rise to attract buyers. For sure the Fed can stop subsidizing the 10y rate with purchases and rates would then skyrocket. The Fed has to also cooperate with the administration and its objectives. Forbearance ends in September unless its extended again. High rates would not be helpful for the administration's optics at that point. Further, fed acting out of self-preservation will not seek to kneecap Demo socialist spending programs by Bk'ing the treasury with interest payments so will need to continue treasury purchases "forever" until the system is somehow dramatically reset. The Fed and administration are support to maintain inflation at 0.2% for the sequential monthly increase (that would be annualized 2.4%). However, inflation (the CPI index) came in at 0.9% this month. That is an annualized rate of 10.8%. This is 5X of the Fed's target. Inflation is surging. There are labor shortages. Government is overspending. They are asleep at the wheel while the economy is overheating and about to head off a cliff. They should have been both suspending government treasury buying and raising rates 6 months ago. Now, huge painful steps need to be taken to rapidly raise rates. This will tank stocks. Stocks can easily fail 50% now that things are gotten so overvalued. What’s the actual inflation rate again? Oh yeah like 20% annualized. Buying a bond at these rates is essentially the equivalent of throwing all of your cash into a paper shredder after adjusting for real inflation. The government will go bust if they keep issuing more and more debt. At some point, the cards may fall. That will be the next financial crisis. The US Government. One Trillion dollars on deck, and 4 Trillion at minimum to be debated in the house for health and welfare stimy. your chicken sandwich is headed to $10 and you will give thanks with your mask on, of course. metal holding, guns, and so forth will be outlawed. Private property with fed back stopped rent next up. Add couple zeros to that benjamin. The US Dollar is on the brink of collapse. The US produces less and less goods per year and devalues the Dollar more and more to make it look like GDP is growing. There's not much left here. This is quite characteristic of failing empires. When the aggregate of the populous seeks more to consume than produce as a society, the governments/banks spend in excess of their ability. As has been historically standard, the governments have a difficult time saying no when the populous demands more spending, once in a cycle of over expenditure. It is more likely than not at this point that the society will continue to spend faster than value growth, until the monetary system collapses. Generally it is (a) foreign group(s) that supersede(s) the largest empire, but this could potentially be the first time of a total world collapse which would be interesting to see, though quite deplorable for all. Thanks to the Federal Reserve Goldman Sachs is the most powerful company in the world. Good thing the Feds turned them into a bank in 2008. Plus most of the Fed chairs are Goldman executives. The game is rigged folks. I feel sorry for the 90% of us poor. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to hit the like button, hit the subscribe button, and don't forget to also hit the notification bell. Thank You. For the first time this year, CPI data came in within expectations. Many in the mainstream took this as a sign “transitory” inflation might be cooling. But many prices continue to increase. The BLS Consumer Price Index (CPI) has become one of the most anticipated data points each month. The CPI has become a controversial measure over the years. Many correctly point out that it is continuously refined to lower the inflation readings using mechanisms like Owners Equivalent Rent and goods substitution. This makes sense from a strategic standpoint as inflation expectations have shown that they can cause inflation to increase. Thus understating inflation can rein in expectations. Even though the inflation methodology is controversial, this analysis uses the data within the CPI (indexes and weightings) to recalculate the inflation rate from a sub-category level. This allows better insight into what is driving the price changes as the charts below show. For more detail on inflation based on the way it used to be calculated before the modifications, search for Shadow Stats. Note: Inflation by definition is the expansion of the money supply, but for this video, it will refer to rising prices. The Consumer Price Index came in much hotter than expected last week. The mainstream chalks rising prices to supply chain and production issues caused by the pandemic. There’s more to it than that. Prices are rising because a surplus of printed dollars is bidding up prices. It’s not that a slowdown in production is irrelevant. I was talking about this early on in the pandemic. A lot of people weren’t going to work, and so they weren’t on the job helping to make things. So sure, the supply chains got backlogged. But of course, you always have a supply problem, or a shortage of supply, when you have a surplus of money.” the primary culprit behind the rapidly rising prices. All the money that’s being printed is being used to bid up products. You have a lot of people who have a lot of money to spend, but they didn’t earn any of it. They didn’t go to a job where they helped produce goods and supply services. They just stayed at home and received a government check. So, the government can print money, but it can’t create products for the money to buy. So, that’s the problem. Not so much a shortage of goods but a surplus of dollars.” The CPI understates the true level of price inflation in the economy. And I think that’s deliberate. I think it’s by design. The government doesn’t want to report honest numbers on inflation. It has a vested interest in pretending inflation is less than it really is, and so I don’t believe these CPI numbers. But even if you accept them on face value, prices have risen by 4% during the first four months of the year. So, if you annualized that, that’s a 6% rise in consumer prices.” And if you look at the monthly numbers, there is a clear trend. Every month is higher than the month before. January – 0.3% February – 0.4% March – 0.6% April – 0.8% The 0.8% increase in April was the biggest jump in the CPI since 1981. If you extrapolate the monthly trend to the end of the year, you’re looking at a 20% year-over-year rise in consumer prices in the United States. That’s 10 times the Fed’s official 2% target.” So, what can the average American do? “stock up!” Go out and buy everything you’re going to need. But buy it now. Things that are non-perishable, items that you’re going to need around the house, whether it’s toiletries, cleansers, food, things like that, just buy it now. Because, number one, a lot of this stuff might not even be available in the future because other people had hoarded it before you got a chance to buy it. But there could also be price controls in the future, which will really result in shortages. But why wait to buy something in a year where it may cost 10, 20, 30 percent more — why not just buy it now? What’s the point in sitting on the cash? It’s just going to depreciate in value. You might as well turn it into something that you can actually use.” Could we see price controls in the US? We saw price controls in the 1970s. Why wouldn’t we have it again? You know, the government never learns from its mistakes. And it was a mistake for Richard Nixon to introduce price controls in the 70s, and it would be a mistake for Joe Biden to introduce them now. But that doesn’t mean they won’t make the mistake. Governments have a habit of repeating their mistakes.” The anchor pointed out that enhanced unemployment benefits seem to be discouraging people from working. Will there be any kind of resolution to all this? No. We’re just going to have much higher prices in the foreseeable future — and the immediate present. But yes, those very generous unemployment benefits are highly inflationary, because number one, the government has to print the money to fund the benefits. But number two, those benefits are directly resulting in fewer people going to work. And so those people are not helping to produce goods or provide services. But they’re spending a lot of money. So, you have fewer goods and services to buy, but more consumers trying to buy them with more money. And so that pushes prices way up.” This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my backup channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe, sane, and healthy friends!
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