|
|
As we have been forecasting for several months, but as the Federal Reserve and The Street have been denying, inflation is real. And if it was “temporary” as the hucksters keep claiming, prices would not have surged in June at its fastest pace in nearly 13 years. The U.S. Labor Department reported today that the consumer price index spiked 5.4 percent.
The core CPI which excludes food and energy prices, had its sharpest increase since 1991, rising 4.5 percent. The estimates were for a 3.8 increase and on a monthly basis. The headline and core prices rose 0.9 percent compared to The Street’s 0.5 percent estimate.
Yes, there will be sectors where prices will go down, but on the broad scale we maintain our forecast for sharp price spikes in various sectors.
And as currencies and wages decline, for the plantation workers in Slavelandia, inflation will, for years to come, be a part of the New ABnormal.
Indeed, the Labor Department’s Bureau of Labor Statistics data proves that, while wages have moved up a bit, rising consumer prices translated into negative real wages for the plantation workers. In fact, as CNBC noted, real average hourly earnings fell 0.5 percent for the month, as a 0.3 percent increase in average hourly earnings was more than negated by the CPI increase.
Inflation continues to rise and yet, the White House and Fed Banksters keep selling the line that, despite the sagging wages and much higher prices, the numbers are stronger than what they had forecast and that the worst is over and inflation will ease.
And though a Fed report on Friday shows that the risks of rising prices are increasing, Fed Chairman Jerome Powell remains adamant that inflationary pressures are temporary.
TRENDPOST: As we have been reporting, the government’s inflation numbers are artificially rigged lower since they want to keep interest rates low to keep the equity markets high and because the lower the CPI number the less they have to pay social security benefits which are tied to the consumer price index. However, according to the June ShadowStats Alternate CPI Measure, real inflation hit 13.38%, which they noted is a 41-Year peak.
TREND FORECAST: The Fed and Washington will continue to sell the line that inflation is temporary since, to keep the overinflated equity and housing bubble from bursting, they must keep interest rates at their near negative range.
And, with Washington racking up a $3 trillion budget deficit for the second year in a row, they will do all they can to keep interest rates low, since the higher rates rise, the more it costs to service the debt… which will reach 102 percent of Gross Domestic Product by the end of 2021, the highest since the end of World War II.
As we have continued to detail, should the Fed raise interest rates to the 1.5 percent range from the near negative current rates and the cheap money flow dries up, the nation will sink into the Greatest Depression.
But will they raise the rate, and if so when?
To find out, read Gregory Mannarino’s article, “The Fed Is Already Moving Goalposts, Stocks Hit New Record Highs.”