The FOMC’s often and clearly stated policy of creating sufficient inflation has been effective: up 36% from January 2000. But there are victims: the middle class and ultimately the economy.
The economy is going back to hell, but stock markets are surging. Nothing new. It always ends in tears. But this time, the Fed’s money-printing strategy will make things only worse. Today’s horrid numbers show us why.
Trillionaire. Just the sound of it! It’s beautiful, Ben. But without your help, we’ll never get there. So, at your meeting next week, think about us. Because the way you make trillionaires is by printing money.
Consumer confidence fell off a cliff and hit levels not seen since April 2009, and yet, consumers spent with abandon and made up the difference by piling on debt, at least for now. What gives?
We want you to prop up the stock market. Everybody knows it’s a Ponzi scheme that will collapse without your support. You don’t want us to end up like Bernie Madoff’s clients. No, Ben, we love Ponzi schemes. We get in early and get out before they collapse. That’s why we’re rich. The bad thing is that they sometimes collapse before we can get out. But you’ve bailed us out twice in the last couple of years….
Awful economic data and corporate announcements confirm: orders are plummeting, the dreaded inventory correction is here, and a recession is now guaranteed. In our already miserable economy, this is going to be a rough ride. Fasten your seatbelt.
July inflation is red hot, real wages are down, and real yields are more negative than ever, exactly what the Fed wants. The destruction of the American middle class continues.How these policies will pull us out of our economic debacle is mathematically unclear.
Chinese inflation numbers just came out, and they’re sizzling. But those are the official numbers, and even officials admit that actual inflation is much higher still. Labor costs are spiraling out of control. And it’s all blowing our way. Exactly what we need.
… if you can print money and are in control of the credit markets. Look at Japan. That doesn’t mean the underlying problems don’t matter.
For those who’ve been trying to swallow all the hype of a miraculous V-shaped recovery in post-earthquake Japan, there are some new numbers out: Just don’t expect the consumer to do any pulling.