The insanity over the U.S. inflation data illustrates just how braindead analysis has become. The price of eggs grabbed a lot of headlines – up 15%. But supply shortages are to blame for that surge – avian flu kills chickens. Raising interest rates will not stop the bird flu. The Fed cannot do anything about that. Raising interest rates would only make inflation rise, not decline. Like the former Biden Administration, the analysis seems to have no common sense anymore. Inflation = economic growth, which is inherent in all systems and is distinguished from hyperinflation when the confidence in government collapses. Deflation = economic contract and decline. So, are we to fear inflation and cheer asset depreciation?
No correlation shows rising inflation is bearish for the economy. In fact, it is exactly the opposite. Deflation takes place during bear markets, and interest rates decline – not rise. It seems that the analysis has been turned upside down thanks to Keynesian Economics. What is really taking place is the expectation that inflation is up, regardless of the cause, so the Fed will be angry and raise rates to punish us for our speculation and investments, which have nothing to do with the price of eggs.
Interest rates decline during recessions or depressions. Yet these mindless analysts just mouth the standard lingo without ever examining whether what they are saying is true or false. It makes me embarrassed to even be an analyst, The myths these people put out are just stupid. Mainstream media will NEVER interview me because I would challenge what they say. OMG – we can’t have that!
In January 1990, I was named economist of the decade for the ’80s. I was asked if I would debate the top economist from the Bank of Canada. When he started comparing the GDP and CPE of one country to another, I would say you can’t do that because they all have different formulas for their statistics. He became so frustrated that he lost his cool and said he was sick and tired of us Americans coming to Canada to tell them what to do. I was then asked if I would debate the top economists on national TV in Australia. I said sure. They all declined.
The Australian did at least explain why rates would fall in Australia against all the analyses of the various economists. That led a number of them to contact me and opened their mind to looking at economics from a different perspective of capital flows.
Now we have these Democrats screaming Trump will cause inflation with his tariffs. Not even for a single moment did they ever consider their endless hatred and warmongering against Russia was inflationary. They put sanctions on Russia, stole their reserves, and then dared to call it Putin’s inflation.
Instead of admitting that sanctions on Russia sent inflation higher worldwide, Democrats were pushing to have people arrested for putting Biden stickers on gas pumps—”I Did That.” The Democrats were transforming the law into a weapon not just to discredit Trump but against anyone discrediting Democrats. Accordingly, law enforcement in Democratic regions was pursued to bring charges against people putting stickers on gas pumps, ranging from vandalism to defacing private property or even the destruction of private property in a desperate attempt to silence freedom of speech. But it’s only a sticker, right? Not when it goes against the Democrats.
The Democrats released one of the most debatable politicians on Capital Hill; they sent in “the Schumer.” Thus, Trump’s tariffs are inflationary for his billionaire friends. Still, Biden’s sanctions were Putin’s inflation and for national security but did not help the energy industry give the Democrats more money for their campaign. Big Pharma also made it mandatory to get a vaccine or lose your job. When has Schumer ever cared about the people rather than retaining power for life? There is over a 2-mile homeless camp in Marin, California, since people lost their jobs thanks to Biden’s mandated vaccines.
Where was Chuck Schumer when his city locked businesses down preventing them from earning income, but did not do the same for their real estate mogul who kept charging rents? They destroyed countless small companies, and one of the lifelong places Mama Leone’s that my parents took me to is gone. Thank you, Schumer, for protecting small businesses and protecting your real estate friends for the donations.
They had the audacity to call any billionaire who supported Trump an oligarch while handing medals to the most notorious George Soros, who has now been exposed as using USAID money to fund revolutions as in Ukraine.
Did USAID also funnel money to Soros to try to prevent the BREXIT vote in Britain? We are lied to with statistics, theories, and covert use of taxpayer money to manipulate the very seats of power to further this Marxist agenda worldwide. Seems like they took up Khruschev’s old object of spreading Marxism to the world. Guess they were closet supports of his agenda afterall.
