Inflation & Devaluation

Tough Day For Our Calamity Economy

by Wolf Richter •  • Comments Off on Tough Day For Our Calamity Economy

The ugly numbers speak volumes on how the Fed’s policies hurt the real economy. But those policies enable Congress and the White House to run up ruinous budget deficits that make those of the Eurozone look benign.

That’s inflation—not jobs, wages, or GDP.

When False Premises Become Economic Policy

by Wolf Richter •  • Comments Off on When False Premises Become Economic Policy

“A shame that we can’t see Japan because of the marine layer” is an old joke in San Francisco. The premise that the fog over the Pacific keeps you from seeing Japan is just as false as the premise that running up huge deficits and printing trillions of dollars can create a healthy economy. Yet, that’s the line propagated by the status-quo media and its economists.

Deflation In Japan and its Chances in the US

by Wolf Richter •  • Comments Off on Deflation In Japan and its Chances in the US

Deflation phobia broke out again. Fed governor Bullard grumbled about inflation expectations being too low and threatened to print more money, while deflationistas paint the Japanese “deflation spiral” as sheer horror. So here is my experience with that horror.

Alas, in one category, deflation has hounded us for 10 years.

Inflation As Solution: Hosing The Middle Class

by Wolf Richter •  • Comments Off on Inflation As Solution: Hosing The Middle Class

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.

Snapshot Of Our Calamity Economy

by Wolf Richter •  • Comments Off on Snapshot Of Our Calamity 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.

Dear Ben, Please Make Us Trillionaires

by Wolf Richter •  • Comments Off on Dear Ben, Please Make Us Trillionaires

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.

The inexplicable American Consumer

by Wolf Richter •  • Comments Off on The inexplicable American Consumer

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?

Dear Ben, Please Print us More Money

by Wolf Richter •  • Comments Off on Dear Ben, Please Print us More Money

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….

Oh No, The Inventory Correction Is Confirmed

by Wolf Richter •  • Comments Off on Oh No, The Inventory Correction Is Confirmed

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.

Fed’s Policies Slam Us Again

by Wolf Richter •  • Comments Off on Fed’s Policies Slam Us Again

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.