“No Resistance” to Price Increases: The Restaurant Industry in a Messed-Up Economy Plagued by Shortages & Transportation Snags | Wolf Street

https://wolfstreet.com/2021/07/20/no-resistance-to-price-increases-the-restaurant-industry-in-a-stimulated-economy-plagued-by-shortages-and-transportation-issues/
There is plenty of meat, but meatpackers are having one heck of a time hiring staff and filling orders, amid red-hot demand, and prices are jumping.

Quantitative-Easing: How The World Got Hooked On Magicked-Up Money

https://www.nationandstate.com/2021/07/20/quantitative-easing-how-the-world-got-hooked-on-magicked-up-money/
Quantitative-Easing: How The World Got Hooked On Magicked-Up Money Authored by Ann Pettifor via ProspetMagazine.co.uk, Going cold turkey would finish off a dysfunctional global financial system that’s now hopelessly addicted to emergency infusions. The only solution is surgery on the system itself… The world economy is a mess. The system, notionally governed by the invisible…

Buyer’s Strike In America: Explosive Inflation Leads To Record Collapse In Home, Car Purchase Plans | Jim Campbell’s

https://whatyouthoughtiwentaway.wordpress.com/2021/07/19/buyers-strike-in-america-explosive-inflation-leads-to-record-collapse-in-home-car-purchase-plans/

It gets even worse because as the UMich director noted, “consumers’ complaints about rising prices on homes, vehicles, and household durables has reached an all-time record”. Simply put, due to skyrocketing prices, America is going on a buyers’ strike!…

Soaring Debts and Plummeting Yields… by David Stockman | STRAIGHT LINE LOGIC

https://straightlinelogic.com/2021/07/18/soaring-debts-and-plummeting-yields-by-david-stockman/

It should be a supply-and-demand thing—an increasing supply of debt should drive interest rates up to attract marginal funding. Not, however, when yield-insensitive central banks can buy unlimited amounts of debt. From David Stockman at davidstockmanscontracorner.com via lewrockwell.com:

After decades of unhinged money-pumping, the Fed has driven real interest rates so low that there are no more bond investors — just traders and suckers.

The former have driven the 10-year yield in recent days to just 150 basis points in nominal terms (and deeply into the red in real terms in the face of surging monthly inflation numbers), because they are “pricing-in” one thing and one thing only: simple and supreme confidence that the spineless fanatics who occupy the Eccles Building will keep buying $120 billion per month of government and quasi-government debt.

Real Yield on 10-Year UST, 1985–2021

…graph…

These are no longer even “markets” by any historical sense of the term. The bond markets and the stock exchanges are just mindless gambling casinos.

Inflation-adjusted yields had previously meandered around the 10%+ level for several decades. But no more. The real yield is so low that yield starved fund managers are throwing caution to the wind and setting themselves up for massive future losses.

That’s not an honest price discovery. It’s the crazed trading that has been fostered by fanatical central bankers who have literally lost touch with history, reality and every canon of sound finance.

Continue reading→

This “Temporary” Inflation Is Turning into an Inflation Spiral, by Wolf Richter | STRAIGHT LINE LOGIC

Comment by tonytran2015: Inflation of fiat money is a stealthy way of taxing people. All fiat money issuers are tempted to enjoy their power of taxation by stealth and cannot resist it (, The lesser-known costs of inflation).

https://straightlinelogic.com/2021/07/15/this-temporary-inflation-is-turning-into-an-inflation-spiral-by-wolf-richter/

The inflation won’t be temporary because the fiat debt creation that’s fueling it hasn’t been. From Wolf Richter at wolfstreet.com:

Get Used to Higher Inflation. My Thoughts on the Biggest Mess I’ve Seen in Decades.

his year, inflation blasted off with a vengeance, and the last four months have seen the hottest pace of inflation since the 1980s.

The consumer price index – the CPI – rose 5% year-over-year for May. The June reading will come out in a couple of days [update: June CPI came in at 5.4%]. 5% of annual inflation is bad enough. But the pace of inflation over the past four months has been much higher, clocking in at over 8% annualized.

Surely, some inflation measures will tick down in the near future, giving everyone false hopes, before rising again. The first bout of inflation always looks temporary. But during those first bouts of inflation, that’s when the triggers of “persistent” inflation – namely the inflationary mindset and inflation expectations – are being unleashed.

So now the Fed keeps repeating time after time that this is temporary and that it will go away on its own because it was caused by temporary factors, namely a demand shock that occurred because the government spread $5 trillion in borrowed stimulus money since March last year; and because the Fed printed $4 trillion over the same period and repressed interest rates to 0%.

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Inflation Data Released Today Shows White House July 4th Price Claims Were Total Crap, Gas Prices Doubled, Annualized Total Inflation Rises to 5.4 Percent and Climbing | Centinel2012

https://centinel2012.com/2021/07/14/inflation-data-released-today-shows-white-house-july-4th-price-claims-were-total-crap-gas-prices-doubled-annualized-total-inflation-rises-to-5-4-percent-and-climbing/
On July 4th, a little more than a week ago, the White House made the preposterous claim that holiday food was cheaper than last year. Everyone who buys groceries knew that level of propaganda was unmitigated nonsense and the consumer pricing data released today shows exactly that...

This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy — The Economic Collapse | Truth2Freedom’s Blog

https://truth4freedom.wordpress.com/2021/07/13/this-is-the-worst-inflation-since-the-1970s-and-the-stage-is-being-set-for-the-total-collapse-of-the-u-s-economy-the-economic-collapse/

How does it feel to live in a country with double-digit inflation? On Tuesday, the Bureau of Labor Statistics told us that the consumer price index has risen 5.4 percent over the past 12 months, and such a high number shocked a lot of people. But in order to make a fair comparison to the past, we have to account for the fact that the way inflation is calculated has been changed literally dozens of times over the past several decades. According to John Williams of shadowstats.com, if inflation was still calculated the way that it was back in 1990, the official rate of inflation over the past 12 months would be about 9 percent. And if inflation was still calculated the way that it was back in 1980, the official rate of inflation over the past 12 months would be well into double-digits.

Everyone that has been warning that we could soon see inflation rise to levels that we haven’t witnessed since the the Jimmy Carter years can stop, because we are already there.

The Bureau of Labor Statistics is committing fraud, because the numbers that they give us are almost meaningless. For example, U.S. home prices have risen 20 percent over the past year, but the “shelter component of inflation” makes up only a tiny fraction of the overall consumer price index…

We’ll get the latest read on inflation Tuesday, when the Bureau of Labor Statistics puts out its consumer price index for the month of June. As you may recall, the May report showed the biggest annual increase in consumer prices, 5%, in 13 years. But if you’re looking for the recent jump in home prices to show up in that number, you’re likely to be disappointed. The shelter component of inflation, as measured by the CPI, has stayed pretty steady, from around 2% to 3.5%, for the past decade. And some economists have a problem with that.

Wouldn’t it be wonderful if your mortgage payment accounted for only 3.5 percent of your overall budget each month?

Needless to say, such a figure is completely and totally unrealistic.

For most of us, housing is the single biggest expense that we face on a regular basis. And as I have documented in many previous articles, housing costs have been soaring into the stratosphere in recent months.

Car prices are also rising at an extremely alarming pace. According to CNN, the average price of a new car has shot up 12 percent over the past year…

In May, the average new car price hit a record $38,255, according to JD Power, up 12% from the same period a year ago. About two-thirds of car buyers paid within 5% of the sticker price in May, with some paying even more.

Instead of buying a new vehicle, you could purchase a used one instead, but used car prices increased 10.5 percent in just the last month

Last month alone, average used car prices soared 10.5 percent – the largest such monthly increase since record-keeping began in January 1953. That spike accounted for about one-third of the monthly increase for the third straight month.

Renting vehicles has gotten a lot more expensive as well.

In fact, average rental rates are up a whopping 86 percentsince this point in 2020…

Daily car rental rates have increased 86% compared to this time last year and 140% more than 2019, according to Julie Hall, a spokesperson for AAA.

The “5.4 percent inflation” fairly tale that the Labor Department is trying to sell us is absolutely laughable.

And as long as they keep putting out such doctored numbers, they are going to have zero credibility.

Everyone can see that prices are skyrocketing all around us. In such an environment, a restaurant in New York can charge 200 dollars for French fries and some people will actually pay that price

Serendipity3, the iconic Upper East Side restaurant, set a Guinness World Records title for making the “Most Expensive French Fries” — just in time to celebrate National French Fry Day Tuesday!

Serendipity3’s Creative Director and Chef Joe Calderone and Corporate Executive Chef Frederick Schoen-Kiewert are the masterminds behind the “Creme de la Creme Pommes Frites,” which cost a whopping $200.

Our leaders thought that they could pump trillions upon trillions of fresh dollars into the system without any serious consequences.

Sadly, they were dead wrong.

Inflation is wildly out of control, and one economist just told Breitbart News that the U.S. is starting “to look a little bit like a Latin American country”

Desmond Lachman, an economist and senior fellow with the American Enterprise Institute (AEI), told Breitbart News on Sunday that the U.S. is beginning to resemble a Latin American country given its inflation, government spending, and printing of money.

“[The U.S. is] in [a]very bad position from a long-term point of view. I don’t see how this can end well when we’re running — now — budget deficits something like 15 percent of GDP,” Lachman said on SiriusXM’s Breitbart News Sunday with host Joel Pollak. “This is beginning to look a little bit like a Latin American country.”

It is actually much worse than that.

The truth is that we are in the terminal phase of the greatest debt bubble in the history of the world, and at such a critical moment U.S. officials have decided to systematically destroy the value of the reserve currency of the planet.

Prior to the pandemic, the U.S. government was stealing more than a hundred million dollars an hour from future generations of Americans, but now our politicians have upped that rate to more than 300 million dollars an hour.

And when the next major crisis comes along, they will pass even more “emergency packages”, because spending money is the only solution they have.

Meanwhile, the Federal Reserve continues to pump giant mountains of money into the financial system. Since September 2019, the size of the Fed balance sheet has more than doubled, and that should be considered a crime against humanity.

Unfortunately, the vast majority of Americans don’t even know what the Federal Reserve is, and only a small fraction of the population actually understands what they are currently doing to our financial system.

Facing no significant resistance, our politicians will continue to get us into staggering amounts of debt, and the Fed will continue to transform the U.S. dollar into toilet paper.

Sadly, what they are doing is setting the stage for the collapse of the late, great U.S. economy, and the economic pain that is ahead will affect every single man, woman and child on the entire planet.

This Is The Worst Inflation Since The 1970s, And The Stage Is Being Set For The Total Collapse Of The U.S. Economy — The Economic Collapse

Does the Biden Administration Understand Inflation? – Nwo Report

Comment by tonytran2015: Inflation is a vicious game run by the government (https://survivaltricks.wordpress.com/2017/03/29/inflation-is-vicious-to-fiat-money-users/).

https://nworeport.me/2021/0: 7/11/does-the-biden-administration-understand-inflation/

Source: Jim Hollingsworth

There seems to be a lot of confusion today about inflation. Pick up the paper or follow an internet site and you will read that the inflation rate this year is expected to be 2% or 3%. What they really mean is that prices are expected to rise 2% or 3%.

But is that inflation?

Inflation is an increase in the money supply. So why is the difference in definition critical? Prices rise because of inflation; they are the result of inflation but they are not inflation, nor are they the cause of inflation.

This is important because the government is the only one that can increase the money supply. This is done in a number of ways, but for the moment just think of it as printing more money. That is what countries have done when they ran out of money; they just printed more money until it came to the point where their money was almost worthless, where a wheelbarrow load of money would just barely purchase a loaf of bread.

Prices rise as a result of inflation. But if we just think of prices rising, we are apt to blame different vendors who we think are just getting rich off of circumstances. We recently had a gasoline shortage and politicians wanted to be sure that there was “no price gouging.” As prices rise, we tend to blame people rather than the government.

We have had a number of “gifts” from the government.

BIS warns on house price rises, run-up in government debt amid ultra-low interest rates – ABC News

https://www.abc.net.au/news/2021-06-30/bis-annual-report-house-prices-economy-interest-rates/100253260

  • The Bank for International Settlements is optimistic the global economy has weathered the worst of the COVID storm
  • The BIS warns that a global surge in house prices may lead to lower economic growth in the medium term
  • It also warns governments not to count on continued low interest rates to stay on top of their growing debts

And Now Prices Are Really Soaring: June Rent Jump Is Biggest On Record

https://www.nationandstate.com/2021/06/29/and-now-prices-are-really-soaring-june-rent-jump-is-biggest-on-record/
And Now Prices Are Really Soaring: June Rent Jump Is Biggest On Record With BofA predicting that the US is facing a period of “transitory hyperinflation“, one which could last as long as 4 years, as a result of soaring commodity prices in everything from metals to food and beyond, in what increasingly more warn […]