Greedy corporations are causing inflation by jacking up prices and enjoying record profits.
This has become an increasingly popular talking point on the political left. Elizabeth Warren has pushed this narrative hard.
And it’s patently absurd.
According to the seasonally adjusted data, M2 expanded by $245 billion in January. However, when looking at the raw, non-seasonally adjusted M2 data, the money supply contracted by $214 billion. That would be the largest contraction since Jan 2013.
How do we parse out this data?
What would you do if you went to the ATM and found that you couldn’t access the money in your bank account?
Many Canadians recently suffered this unsettling experience. Customers of five major Canadian banks reported mysterious online banking outages last week after Canadian Prime Minister Justin Trudeau announced he was invoking emergency powers in response to a massive trucker protest. This gave the Canadian government the authority to freeze bank accounts.
President Joe Biden has announced the first round of economic sanctions on Russia as tensions in Ukraine continue to mount. The sanctions came in response to an announcement by Russian President Vladimir Putin recognizing two breakaway republics in Ukraine and his decision to send troops into those regions.
Sanctions are meant to punish Russia, but in his podcast, Peter Schiff explained how these economic moves could also impact the US dollar and create even more inflation.
Inflation is smoking hot. As measured by the consumer price index, the inflation rate is at 7.5%. And the cooked government CPI number understates inflation.
Peter Schiff says the inflation tsunami is just getting started. The Fed is talking about an inflation fight, but it’s more likely to drive the US economy into a recession. And Schiff says that will make inflation even worse.
The Fed is supposed to make the economy more stable. But it’s clear the real impact is the exact opposite. The Fed causes great harm. And as Ron Paul pointed out in a recent article, it hurts the average American worker the most.
The markets seem to be anticipating a Fed inflation fight. They also seem to be realizing that this is going to cause a recession. But they still haven’t come to grips with the fact that this is not going to fix the inflation problem. In his podcast, Peter Schiff argues that the recession will actually end up making inflation worse.
Are we heading toward housing crisis 2.0?
That remains to be seen.
Two things are for certain. This is a massive housing bubble. And the Fed is holding the pin.
Gold and silver have both rallied in recent weeks, with the price of gold pushing to $1,900 an ounce. But is this rally sustainable?
Following is some technical analysis of both the gold and silver markets.
You have a choice. Do you take an Olympic gold medal? Or the Lombardi Trophy?
Don’t make a hasty decision that you might regret.
There was more bad inflation news this week. So, the Fed is about to ramp up the inflation fight, right? Not so fast. In this episode of the Friday Gold Wrap, host Mike Maharrey argues that the central bank isn’t set to go to war with inflation because it can’t. And he explains how St. Louis Fed President James Bullard let the cat out of the bag.
