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

https://straightlinelogic.com/2021/05/13/its-getting-serious-dollars-purchasing-power-plunges-most-since-2007-but-its-a-lot-worse-than-it-appears-by-wolf-richter/

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%:

Swedish-Danish front at EU meeting: Stay away from our model | VikingLifeBlog

https://vikinglifeblog.wordpress.com/2021/05/09/swedish-danish-front-at-eu-meeting-stay-away-from-our-model/

Sweden and Denmark will unite during an EU social summit on Friday in defence of the labour market models unique to the two Nordic EU countries. The pressure from the other EU countries is considerable.

It is the struggle between, on the one hand, collective agreements that are well functioning in Denmark, Sweden and a few other EU countries, and, on the other hand, a statutory minimum wage.

  • We are driven by the same ambition: everyone must be able to live off their wages and live on it. But how do you get there? From the Swedish side and from the Danish side, we believe that it is best done according to each country’s culture and tradition. For us, it is collective agreements that are crucial, Sweden’s Prime Minister Stefan Löfven told news agency TT on his way to the meeting.

In other words, keep your hands off our model. Labour market policy should not be a matter for the Eu ropean Union.

In recent weeks, there has been a tug-of-war between EU diplomats over what should be said about social policy in a statement from the Porto Summit.

It is currently a text that the two Nordic countries can live with, as nothing is promised or a path towards their wishes is indicated.

The Danish Government has stubbornly fought against measures that can sneak the EU in through the back door of labour market policy.

Prime Minister Mette Frederiksen (Social Democratic Party) is confident that the Danish and Swedish models are not under threat as it stands.

  • I am in this way, and now I just greeted the responsible European Commissioner that I can feel a great awareness, and it is Denmark and Sweden in particular, that we have very strong labour market models that the EU must not be allowed to undermine, Frederiksen says.

On Friday, she will take part in a working session on social issues with other Heads of State or Government and representatives of the social partners.

  • I am very aware of this, and the Minister for Employment is very obscene about this, so that we do not suddenly get to say yes to something that could undermine our Danish labour market model. Because it’s world class. We should be allowed to keep it, says the Prime Minister.

The countries of the European Union can work well together in the social field, she stresses, but when it comes to labour market policy, it must remain a national matter

Beijing’s Elusive Bid For Pricing Power On Rare Earths

https://www.nationandstate.com/2021/05/08/beijings-elusive-bid-for-pricing-power-on-rare-earths/

Authored by Damien Ma via MacroPolo.org, From ventilator and chip shortages to what kind of ships traverses through which canals, the linkages and nodes of the global economy have rarely been in the spotlight as much as they have over the last 12 months. Many of these disruptions are short-term ones, but they […]

The federal budget’s forecasts have relied on dodgy assumptions for years – ABC News

https://www.abc.net.au/news/2021-05-09/federal-budgets-forecasts-have-relied-on-dodgy-assumptions/100126156

Back in 2017, when the national unemployment rate hit a then four-year low of 5.5 per cent, the Reserve Bank governor, Philip Lowe, said workers should start asking for pay rises because the labour market was tighter than people thought.

But while he was saying that, the trend underemployment rate was sitting at a historical high of 8.8 per cent, having just risen for six consecutive quarters…

South Carolina Follows Montana In Ending All Supplemental Unemployment Benefit Programs

https://www.nationandstate.com/2021/05/06/south-carolina-follows-montana-in-ending-all-supplemental-unemployment-benefit-programs/

It appears we were overly cynical when we said just an hour ago that we won’t be holding our breath to find out if any other state will join Montana in ending many unemployment benefits in response to the unprecedented worker shortage. Just moments…

DC District Judge Rules Nationwide Moratorium on Evictions is Beyond Authority of CDC | Centinel2012

https://centinel2012.com/2021/05/06/dc-district-judge-rules-nationwide-moratorium-on-evictions-is-beyond-authority-of-cdc/

U.S District Judge Dabney Friedrich has ruled the CDC has exceeded its authority with the federal ban on evictions during the COVID response. [pdf ruling HERE]

The issue at the heart of the matter is one of private property rights.  As the judge stated: “The question for the Court is a narrow one – “Does the Public Health Service Act grant the CDC the legal authority to impose a nationwide eviction moratorium? It does not.

(WASHINGTON) – Federal Judge Dabney Friedrich struck down on Wednesday the national eviction moratorium, potentially leaving millions of Americans at risk of losing their homes.

The Centers for Disease Control and Prevention has banned most evictions across the country since September. President Joe Biden extended that protection to renters until July. Some 1 in 5 renters across the U.S. are behind on their payments amid the pandemic, and states are scrambling to disburse more than $45 billion in rental assistance. (read more)

Judges in Ohio and Texas have previously ruled against enforcement of the ban based on property rights.  The federal government cannot block evictions for failure to make payments to private property owners.  The Washington Post reported that officials in the Treasury Department were “racing” to distribute COVID relief aid before eviction moratoriums were struck down; the Biden administration knew what they were attempting would be overturned by the courts.

In a related note….

Production Falls, Prices Up, Trade Balance Worsens…Welcome To OBiden’s New Normal…Despited Trillions In Stimmy Candy – Nwo Report

https://nworeport.me/2021/05/05/production-falls-prices-up-trade-balance-worsenswelcome-to-obidens-new-normaldespited-trillions-in-stimmy-candy/

Source: CD Media Staff

With well over $8 trillion in Federal spending being worked through Congress this year, the ‘stimulus’ sugar high is already beginning to wear off, after a few good months of low-information voter optimism.

The age-old socialist pattern of ‘take from the rich (and destroy small business) and spread the wealth (to people who don’t work) simply doesn’t work long term. Margaret Thatcher was of course right — eventually you run out of other people’s money.

Yesterday’s economic numbers showed a massive drop in American production as almost all analysts now agree inflation is coming.

Today saw the month’s trade imbalance numbers increase negatively for America yet again.

There is something our readers need to realize — OBiden is not about economics. He is not about a better future. He is not about fixing anything, or making your life, or your family’s life better.

He is about destroying the greatest economy ever known to mind. He is doing the bidding of his communist Chinese masters in their prosecution of ‘unrestricted warfare’.

Once you fully embrace that fact, everything that is happening makes complete sense.

Financial markets are falling on inflation fears this morning.

—————————

Goods and Services Trade Balance (Mar) printed at -$74.4B vs -$74.5B estimate.

Goods Trade Balance (Mar) printed at -$91.6B.

Markit Manufacturing PMI (Apr) printed yesterday at 60.5 vs 60.6 consensus estimate.

ISM Manufacturing Employment Index (Apr) printed yesterday at 55.1 vs 61.5 estimate.

ISM Manufacturing PMI (Apr) printed yesterday at 60.7 vs 65 estimate.

ISM Manufacturing Prices Paid (Apr) printed yesterday at 89.6 vs 86.1 estimate.

ISM Manufacturing New Orders Index (Apr) printed yesterday at 64.3 vs 66.6 estimate.

Construction Spending (MoM) (Apr) printed yesterday at 0.2% vs 2% estimate.

Uber Blowout Earnings Smash Expectations, Stock Barely Budges

Comment by tonytran2015: This is another sign of irrational market before the loss of confidence by investors.

https://www.nationandstate.com/2021/05/05/uber-blowout-earnings-smash-expectations-stock-barely-budges/

Uber generated over $48BN in revenue by burning $10BN in cash. It has never been profitable, and this is not the quarter it will change that. One day after its its biggest competitor Lyft reported impressive numbers only to see its stock […]

Verizon to sell Yahoo, AOL for $5 billion, turn focus to 5G network growth

https://www.nationandstate.com/2021/05/03/verizon-to-sell-yahoo-aol-for-5-billion-turn-focus-to-5g-network-growth/

Verizon Media has sold its digital technology businesses to Apollo Global Management as the company struggled to keep up with Google and Facebook ad revenue. Go to Source Author: {Just The News}… Read more

Mortgage interest rates may soon be on the way up as the Aussie dollar falls – ABC News

https://www.abc.net.au/news/2021-03-10/mortgage-interest-rates-may-soon-be-on-the-way-up/13230942

The bottom line is you can’t have any level of sustainable economic growth, and the inflationary pressures that come with that, and, at the same time, emergency level interest rates.

… Something has to give, and markets are betting it’ll be higher interest rates, and that means more on your monthly home loan repayments…