Fed Drains $351 Billion in Liquidity from Market via Reverse Repos, as Banking System Creaks under Mountain of Reserves | Wolf Street


This is the first time I’ve seen Wall Street banks clamor for the Fed to back off QE. The Fed struggles to keep the liquidity it created from going haywire.

The Most Splendid Housing Bubbles in Canada: Even the Bank of Canada Gets Nervous and Tapers | Wolf Street


House prices in the largest markets have gone nuts amid “extrapolative expectations and speculative behavior,” as the Bank of Canada put it….

Druckenmiller: “There’s Been No Greater Engine Of Inequality Than The Fed”


Druckenmiller: “There’s Been No Greater Engine Of Inequality Than The Fed” After his status-quo-shattering appearance on CNBC this week, during which he warned that “Fed policy is endangering the dollar’s reserve status,” billionaire fund manager Stan Druckenmiller spoke to The USC Marshall Center for Investment Studies’ Student Investment Fund Annual Meeting via Zoom, and shocked…

Stage Is Set For “Dramatically Higher Inflation” As Transportation Costs Spike Even Higher


By Greg Miller of Freight Waves, 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…

It’s Getting Serious: Dollar’s Purchasing Power Plunges Most since 2007. But it’s a Lot Worse than it Appears, by Wolf Richter | STRAIGHT LINE LOGIC


There are lies, damn lies, and government inflation statistics. From Wolf Richter at wolfstreet.com:

Fed officials, economists “surprised” by surge in CPI inflation, but we’ve seen it for months, including “scary-crazy” inflation in some corners.

The Consumer Price Index jumped 0.8% in April from March, after having jumped 0.6% in March from February – both the sharpest month-to-month jumps since 2009 – and after having jumped 0.4% in February, according to the Bureau of Labor Statistics today. For the three months combined, CPI has jumped by 1.7%, or by 7.0% “annualized.” So that’s what we’re looking at: 7% CPI inflation and accelerating.

Consumer price inflation is the politically correct way of saying the consumer dollar – everything denominated in dollars for consumers, such as their labor – is losing purchasing power. And the purchasing power of the “consumer dollar” plunged by 1.1% in April from March, or 12% “annualized,” according to BLS data. From record low to record low. Over the past three months, the purchasing power of the consumer dollars has plunged by 2.1%, the biggest three-month drop since 2007. “Annualized,” over those three months, the purchasing power of the dollar dropped at an annual rate of 8.4%:

Expectations Matter Most When It Comes To Inflation


By Laura Cooper, Bloomberg reporter and Markets Live commentator Inflation expectations matter when it comes to central-bank policy, with scope for markets to ramp up hedging bets as price uncertainty extends – and more potential shock-and-awe CPI prints add conviction to the debate. While investor fears of runaway price…

Data Shows Massive Inflation Starting to Bite Middle-Class Hard, Unleaded Regular Gasoline Up 52 Percent, Fresh Fruits and Vegetables Rising Fast – The Last Refuge – Trump:The American Years


Overall prices are up 4.2 percent year-over-year, which is three times the rate of inflation under Joe Biden than under President Trump.  Inflation hurts the lower and middle economic class much harder; and the specific inflation sectors show massive increases on the goods and services that blue collar workers use most.

Great Article,Continue Reading Here: Data Shows Massive Inflation Starting to Bite Middle-Class Hard, Unleaded Regular Gasoline Up 52 Percent, Fresh Fruits and Vegetables Rising Fast – The Last Refuge

The age of entitlement is back in Australia | The Wentworth Report


It would perhaps be understandable, even desirable, if debt was being invested in productive assets that deliver long-term benefits to future generations, such as constructing more dams, coal-fired power, or nuclear power. But instead the government is borrowing money to subsidise child care for high-income, inner-city lawyers and doctors. …

The debt will never be paid back in dollars worth anything like today’s dollars. Instead, it will be inflated away, which is the only politically acceptable solution. Every paper currency in the history of the world has always ended this way. The average lifetime of a paper currency –and there have been over a thousand to date — is two generations, or 50 years. Technically, our currency because purely paper (or “fiat”) in 1971, exactly 50 years ago!

Why Modern Monetary Theory Will Destroy Money… | The Wentworth Report


Why Modern Monetary Theory Will Destroy Money… By Doug Casey.

MMT is the idea that governments should augment their tax income by printing money up to the point at which “inflation” breaks out.

“Inflation” isn’t caused by greedy butchers, bakers, and gasoline makers. It’s caused by an excess of purchasing media [i.e. money]. MMT will give the State total control of its quantity and quality.

If the government increases the money supply by, say, 10 times, general prices will go up by 10 times. The value of your dollar savings will drop 90% …

In any event, some people will get hold of a lot more of that 10x increase than others. And they’ll get hold of it earlier, before prices really take off.

Who? Inevitably cronies.

Look, absolutely every government intrusion into the economy – whether it’s taxes or regulations or inflation – always benefits the people in and around the government. And damages society as a whole.

But they’re sold to the voters, to the hoi polloi, to the “head count,” as something that will put them on easy street. Which is a lie, of course.

But that’s not what the argument should be about. The average guy doesn’t understand economics; he doesn’t think, he feels. …

This matter is essentially a moral question, not a technical question. Does somebody in government have a right to determine your economic destiny? Or not?

The fact that Alexandria Ocasio-Cortez [AOC] — an ambitious, terminally ignorant, morally crippled 31-year-old Puerto Rican bartender — is setting the tone for this whole discussion tells you how degraded the U.S. has become. It’s well on its way to turning into a giant welfare and police state.

Back in the 1970s, when inflation was last a problem, governments redefined inflation as CPI. Before that, inflation used to mean an increase in money supply. Since 1982 the money supply has been growing at over 10% per year through out the western world, while CPI runs at 2%. Perhaps 3% growth is due to population and productivity increases, so the CPI has underestimated inflation by 5% or more every year. So where has this money gone, if not into consumer goods? Into assets — the prices of houses, bonds, shares , rare arts, etc etc, are all at record highs. The CPI essentially measures wages, and they have not gone up as fast as assets.

AOC has no idea of any of this. It will take her years to learn it, at our expense, because there are several abstract or quantitative ideas.

Analysts, Money Managers Suggest Precious Metals Should Be Required Assets – One Percent Finance


As the effects of the pandemic spread like wildfire last summer, the New York Times informed us roughly half of all Americans were seriously considering the purchase of gold.