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Jon Kutsmeda

Inflation – What is it good for?

I also shared a similar post on this topic via Instagram.

 

INFLATION … what is it good for?

Absolutely nothing (say it again y’all).

 

Inflation is measured as a rate of change; the most recent year-over-year inflation numbers are the highest in decades.

The Federal Reserve has a “dual mandate” – maximum employment and stable prices.

One way to appear as though the first has been achieved (full employment) is while calculating unemployment to ignore the labor force participation rate (62%), which is the percentage of the population that is either working or actively looking for work.

The current tally is the lowest since the 70’s, and more importantly signifies that 38% of the population are no longer even calculated in the unemployment rate despite being “unemployed”.

 

The same method of data manipulation is also used in the measurement of inflation, the Consumer Price Index (CPI), which approached 8% from last year despite excluding all the things that matter to everyday people, like food and energy.

 

After all, who really cares about skyrocketing oil and food prices? It’s not like people eat, power their homes, or drive cars anymore.

 

The CPI also excludes most assets, such as stocks, bonds, and real estate.

That is a good thing too, because otherwise the Fed might need to acknowledge that it has inflated (again) a giant bubble in … EVERYTHING.

 

So, yeah, tell us again about the 2% inflation target, as if an annual dilution of purchasing power is somehow good in aggregate when wage growth has barely budged in over 30 years.

 

The real comedy, or tragedy, in all of this, is the Fed is behind the curve again and is about to embark on one of the most aggressive rate hiking cycles in their history, despite the economy already showing signs of contraction.

 

Get ready, The Fed is going to crash the market, intentionally.

More on that later…





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