Inflation

Peter Schiff: Inflation Is Really A Tax

Via SchiffGold.com, Peter Schiff recently spoke at the January 2021 Virtual Money Show. He explained why the coming financial crisis will be much worse than 2008, and how the Federal Reserve and the US government are driving us toward this crisis with their inflationary monetary policy. Peter is well-known for predicting the 2008 financial crisis. Today…

Loonie Surges After Hawkish Bank Of Canada Sees Faster Recovery, Warns Of Upside Inflation Risk

As expected, the Bank of Canada today held its target for the overnight rate at the effective lower bound of ¼ percent, with the Bank Rate at ½ percent and the deposit rate at ¼ percent. The Bank also kept its guidance and QE program unchanged at its current pace of at least $4 billion…

Fruits Of Inflation Are Blossoming

Authored by MN Gordon via EconomicPrism.com, Donald Trump got impeached – again – this week.  Big whoop! We already knew the House of Representatives at the 117th Congress is the greatest collection of political crooks, lowlifes, and losers to ever assemble under one roof.  We didn’t need a token impeachment vote to validate this. More…

What Is The Best Hedge To Hot Inflation?

Authored by Bryce Coward via Knowledge Leaders Capital blog, This week investors learned of president-elect Joe Biden’s initial bid for the next round of covid-19 relief. The number came in at $1.9tn. Importantly, included in this figure is mainly covid relief as opposed to a longer-term fiscal package that will be heavily weighted to infrastructure….

US Producer Price Inflation Slows In December

After consumer prices rose as expected (with shelter cost growth slowing dramatically but food costs surging), producer prices rose less than expected in December, up just 0.3% (vs +0.4% exp). This left producer prices up just 0.8% YoY, the same as in November. Source: Bloomberg It appears government-imposed lockdowns trumped supply chain disruptions with core…

Food Price Inflation Accelerates For Seventh Consecutive Month

By Tyler Durden Is it time to worry about food inflation? The Food and Agriculture Organization’s Food Price Index rose for a seventh consecutive month in December, led by dairy products and vegetable oils. The FAO Food Price Index averaged 107.5 points last month versus 105.2 points in November. The benchmark, which tracks global food…

Food Price Inflation Accelerates For Seventh Consecutive Month

Is it time to worry about food inflation? The Food and Agriculture Organization’s Food Price Index rose for a seventh consecutive month in December, led by dairy products and vegetable oils.  The FAO Food Price Index averaged 107.5 points last month versus 105.2 points in November.  The benchmark, which tracks global food prices of cereals,…

Breakevens Soar To 2-Year High As Inflation Expectations Spike, Real Rates Crater

The breatheless rally in the 10Y Breakeven rate since the March lockdown lows has continued, and on Tuesday morning it hit a high of 2.03%, the highest level since December 2018. This even as real rates – which are determined by TIPS – have cratered to -1.09%, the lowest level this century. Validating expectations for…

Home Prices Soar At 3 Times The Fed's Inflation Target Across All US Cities

The Fed’s most frequent lament is that no matter how many trillions in bonds (and stocks and ETFs) it buys or how much liquidity it forehoses into the market, it just can’t push broader inflation higher. Well, here’s an idea: maybe all the central-planning megabrains at the Marriner Eccles building and 33 Liberty Street can…

Inflation Expectations Solidly On The Rise

Authored by Bruce Wilds via Advancing Time blog, Inflation expectations appear to be solidly on the rise and that spells big problems for the financial system. For years the central banks across the world have claimed deflation has driven or allowed their QE policies to remain. This is central to their ability to stimulate. The…

UBS Chief Economist: There Is No Inflation, Consumers Are Just Imagining It

Yesterday we asked if it was time to start worrying about food inflation while discussing recent notes by both Goldman and SocGen’s Albert Edwards, who highlighted the current burst in food inflation across the globe and especially emerging markets, pointing out troubling similarities to the period of soaring food inflation in late 2010 – sparked…

“Where’s The Inflation?”: Wayne Gretzky Hockey Card Expected To Fetch $1 Million At Auction

While the Fed has a monopoly on most printed pieces of paper that have been assigned ridiculous valuations, they may not have the entire total addressable market. That’s because a Wayne Gretzky hockey card – in fact, a 1979 Wayne Gretzky O-Pee-Chee rookie card – is set to fetch more than $1 million at an upcoming auction. “Where’s the…

Breakeven Inflation Is Breaking Out

Authored by Bryce Coward via Knowledge Leaders Capital blog, Inflation expectations as priced by the Treasury market are hitting 18 month highs just now. As the reader can see, inflation expectations across all treasury maturities are at cycle highs. This is happening coincident with growing expectations for the $908bn bipartisan stimulus deal and widespread expectations…

Here’s How Central Banks Will Finally Unleash Inflation: The Shenzhen Case Study

Back in 2009, when the Fed first launched QE, a majority of traders and strategists were convinced that the Fed would spark an inflationary inferno as a result of the hundreds of billions of dollars (back then, that was a big number) of liquidity injected into markets and which – using the Weimar Republic as…

Global Inflation Watch – The Case For Gold As Future Money

Authored by Alasdair Macleod via Goldmoney.com, This article posits that fiat currencies are on the path to hyperinflation and looks at the evidence in the prices of financial assets and commodities. So far, gold has notably underperformed, which indicates that the early signals of hyperinflation are confined to the cryptocurrencies, whose participants broadly understand fiat…

Home Prices In Every Major City Jump More Than Double The Fed’s Inflation Target

While various Fed speakers are vowing this week that there will be no rate hikes until at least 2023 or 2024, the Fed may be surprised to learn that if it were to broaden its definition of inflation, it would find it is quite ample already. One month ago, we looked at the housing market…

No Wonder The Super-Rich Love Inflation

Authored by Charles Hugh Smith via OfTwoMinds blog, Asset inflation benefits the super-rich more than anyone else because they own the vast majority of these assets. With the reflation euphoria running full blast, maybe central banks will finally get all that inflation they’ve been pining for. So let’s ask cui bono–who will benefit from inflation? The Super-Rich…

Inflation Is Not A Social Policy

Authored by Daniel Lacalle, Central banks continue to be obsessed with inflation. Current monetary policy is like the behaviour of a reckless driver running at 200 miles per hour, looking at the rear-view mirror and thinking “we have not crashed yet, let’s accelerate”. Central banks believe that there is no risk in current monetary policy…