A month ago, Joe Biden stood in front of America and
said we have “Zero Inflation”. He said inflation was done and there would not be a
Recession. He continued to tell
Americans that the policies implemented by his administration were working and
we have a stronger economy that ever before.
He also said the Southern Border is closed and secure. Furthermore, more Americans than ever were
working. He spoke with a forked tongue.
The Propaganda Media over the last three or four weeks
have been telling us since gas prices are down that inflation will be going
down and all is right with the world.
Even after the horrific inflation numbers reported yesterday, the media is
still trying to get you to think inflation went down.
The Elephant in the room has reared its ugly head and
shows us that the administration and the media have their heads in the clouds
and will not recognize the truth when it slaps them upside the head.
And yesterday’s inflation report and numbers were a
big slap in the head to America. The
administration, the Democratic Socialists, the media, many in the GOP, and Wall
Street believed, wishfully, that all is right with the world.
But that is not so.
The
numbers tell the story.
CPI: 8.3%; still a 40 year high; last 3 months
inflation is up 6.5%.
PPI: 8.7% YOY; core rate up 7.3% (MOM minus food and
energy); .04% MOM;
Gas has gone down but still up over 25%. But that was the only item that went
down. Everything else has increased in
price. And the American consumer knows
it. But watch this, the predictions are
for prices to increase again.
Food costs: up 12.2% in the last 3 months
Restaurant costs: up 13.5% in last 3 months
Rent cost: up 6.5 % in last 3 months
Healthcare costs: up 4%
New and Used cars: up 10% and 13% respectively
Electricity is up 13%
Home fuel oil will go up significantly this winter.
The real
kicker for Americans is the decline in real wages. They have gone down now for
the 17th month in a row. That
means that inflation is eating up your money.
The
agency said real median household income last year was down about $400, making
it "not statistically different than 2020."
From 2020
to 2021, inflation rose 4.7%, marking the largest cost-of-living increase since
1990, data shows.
2 yr bond rate: 3.82%
10 yr bond rate: 3.425%; 30 yr bond rate: 3.52%
Mortgage rates are up to 6.5%. Homebuyer demand falls 29% from last year. The housing sector is already in a recession.
The Federal Reserve will raise the Fed Funds rate
either 75 or 100 basis points next week.
With those rates going up, the increase to the interest
payments on Federal Debt will go up $300 Billion per year. And more as rates continue to rise over the
next year or two years.
Joe Biden, his administration, and the propaganda media were out yesterday celebrating and pushing a false narrative about the inflation situation. And celebrating the passing of the Inflation Reduction Act. Americans know it will do just the opposite of what its name implies. Just the spending alone in the bill will drive up costs and inflation. In the bill, taxes will go up on businesses and investment. Energy companies’ taxes are going up under this bill. All these increases flow to the consumer. Small businesses will get hit the hardest.
Corporate earnings have already been hit hard. Third quarter earnings reports will not be too pretty. Right now, the report is showing by take energy companies out of the report, overall earnings are down 1%. Retail sales are slowing. People are buying, but very selective in their purchases. Food and necessities are taking the priority right now.
Other
inflationary moves coming:
No comments:
Post a Comment