The Fed has an inflation problem.
The CPI is running well above the mythical 2% target and there isn’t any sign that it will ease soon. To deal with this problem, the central bank should tighten its monetary policy. But that would create a whole new problem, given that it can’t tighten in this economic environment. So, what is a central banker to do?
Well, if the Fed can’t hit the target, how about just moving the target?
Wouldn’t it be cool if you could just talk and your words would alter reality?
It would elevate you to superhero status — or super-villain depending on your propensity to use your power for good or evil.
You know, there’s a real-life person who at least appears to have this superpower.
A Reuters article by Stefano Rebaudo argued that the Federal Reserve might welcome a “bond market tantrum” that pushes bond yields higher. But does the Fed really want higher interest rates? And what would that mean for the economy?
Despite the post-pandemic economic improvement and wide expectations that the Fed will begin tapering quantitative easing in the near future, bond yields have remained stubbornly low. Ten-year Treasury yields remain stuck just above 1.3%.
Today is Constitution Day.
We’re supposed to be celebrating the day the Constitution was signed and presented to the states for ratification. But it’s pretty hard to celebrate because the Constitution is dead.
The government CPI data for August came in slightly under expectations. Nevertheless, a 0.3% month-on-month increase in prices is significant. And a dig into the numbers reveals something wonky. The way the government calculates housing costs drastically understates rising prices and skews overall CPI to the downside.
The Federal Reserve is helping corporate real estate investors evict poor people from mobile home parks.
I have some sobering news for you.
Politicians lie.
No, no, not just the politicians you don’t like. I mean pretty much all of them – with a few rare exceptions. It’s like part of the political DNA.
I learned a new term this week – crypto gangster.
I have to confess — it sounds kind of cool.
“What do you do, Maharrey?”
“I’m a crypto gangster. So, don’t mess with me.”
Prices are rising throughout the US economy. Federal Reserve Chairman Jerome Powell keeps telling us this inflationary surge is “transitory.” But transitory doesn’t mean what you think it means. The truth is higher prices are forever.
Here’s just a sampling of the price increases we’ve seen over the past few months.
How about a treasure hunt?
I’ve got one for you.
Word has it, there is mobster gold buried somewhere in the Catskills.
