Tag Archive: Consumer Price Index
Weekly Market Pulse: Are Higher Interest Rates Good For The Economy?
Interest rates surged last week on the back of a hotter-than-expected inflation report that wasn’t actually that bad (see below). Not that my – or your – opinion about these things matters all that much to the market.
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And Now Three Huge PPIs Which Still Don’t Matter One Bit In Bond Market
And just like that, snap of the fingers, it’s gone. Without a “bad” Treasury auction, there was no stopping the bond market today from retracing all of yesterday’s (modest) selloff and then some. This despite the huge CPI estimates released before the prior session’s trading, and now PPI figures that are equally if not more obscene.
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Gold Hedges USD Devaluation, Rise in Oil, Food and Cost of Living Since 1971 – Must See Charts
Gold hedges massive ongoing devaluation of U.S. Dollar. 46th anniversary of ‘Tricky Dicky’ ending Gold Standard (see video). Savings destroyed by currency creation and now negative interest rates. Long-term inflation figures show gold a hedge against rising cost of fuel, food and cost of living. $20 food and beverages basket of 1971 cost $120.17 in 2017.
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Bi-Weekly Economic Review: Ignore The Idiot
Of the economic releases of the past two weeks the one that got the most attention was the employment report. That report is seen by many market analysts as one of the most important and of course the Fed puts a lot of emphasis on it so the press spends an inordinate amount of time dissecting it.
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Key Events In The Coming Busy Week: Fed, BOJ, BOE, SNB, US Inflation And Retail Sales
After a tumultous week in the world of politics, with non-stop Trump drama in the US, a disastrous for Theresa May general election in the UK, and pro-establishment results in France and Italy, this is shaping up as another busy week ahead with multiple CB meetings, a full data calendar and even another important Eurogroup meeting for Greece.
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Could Inflation Break the Back of the Status Quo?
Political resistance to the oligarchy's financialization skimming operations will eventually cripple central bank giveaways to the financial sector and corporate oligarchs. That inflation and interest rates will remain near-zero for a generation is accepted as "obvious" by virtually the entire mainstream media.
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End Of The Bond Bull – Better Hope Not
It’s been really busy as of late to cover all of the topics I have wanted to address. One topic, in particular, is the bond market and the ongoing concerns of a “bond bubble” due to historically low interest rates in the U.S. and, by direct consequence, historically high bond prices.
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Real vs. Nominal Interest Rates
Calculation Problem. What is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into what they mean by inflation. You can’t add apples and oranges, or so the old expression claims. However, economists insist that you can average the prices of apples, oranges, oil, rent, and a ski trip at St. Moritz.
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Real vs. Nominal Interest Rates
What is the real interest rate? It is the nominal rate minus the inflation rate. This is a problematic idea. Let’s drill deeper into what they mean by inflation. You can’t add apples and oranges, or so the old expression claims. However, economists insist that you can average the prices of apples, oranges, oil, rent, and a ski trip at St. Moritz. This is despite problems that prevent them from agreeing on what should be included.
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