Posted on 07/13/2023 7:47:45 AM PDT by Kaiser8408a
There goes the economy!
As The Federal Reserve is poised to continue it inflation-fighting crusade, the US economy is rapdily approaching DEFLATION. US Producer Price Index FINAL DEMAND fell to 0.1% YoY in June.
Bidenomics, the combination of insane monetary stimulus and insane directed Federal spending towards going green at all costs, is running out of steam. M2 Money growth was last measured to be -4% YoY and the US Dollar is down -8.2% since September 2022.
The good news? Silver is up over 2% today!
And Bitcoin is up almost a percent today.
Speaking of the Biden White House ….
(Excerpt) Read more at confoundedinterest.net ...
Correct me if I’m wrong, but though SS can be increased with bumps in the CPI, it can’t be decreased when the CPI tumbles.
Is that correct?
The last two years my wife and I saw our SS increase by ~$500 per month, yet our personal cost of living didn’t go up at all. I love Kentucky!
Why is a constant inflation say (2%) a good thing?
Remember when unemployment would never be below 5%?
With an inflation up as sharply as it was some deflation can be expected. The inflation was fueled by stimulus and oil prices. Stimulus is ending and oil prices are down significantly.
Those things will impact producer prices, leading to tamer inflation and eventually the reversal of interest rates. The Fed rate is now above the PPI. This continues to suck excess liquidity out of the markets.
Now, whether we have a little recession or a big one has yet to be seen. I cannot imagine the Fed allowing things to fall apart during an election year. The S-Storm would get put off until Q1 ‘25.
YoY!
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