CPI Index Rises over 43% per decade on Average - Don't be Fooledby the Politicians, Talking heads and Bankers.
Governments can only Tax, Borrow & Spend
Central Banks can only Print & Lend.
If this index were to rise by the average of 43%
You are looking at the CPI Index hitting 372 by Jan 2030
There is every likelihood this decade, will be a higher than average inflation rise.
You must save in scarce Assets #Gold & #Bitcoin
You must continue to in invest in #Technology #ETH & #LINK come to mind.
CPIAUCSL trade ideas
CPI % Increase already close to 3 Prior crashes in 1/3rd timeVisualizing CPI within the timeframe of boom and busts.
I believe we will continue to melt up in Asset prices as printing still continues and the common investor begins to feel the missed the boat and are getting priced out of the market. They see their buying power deteriorate and will continue to rush to assets i.e stocks.
we could see this melt up continue all the way into the first quarter of the next US President Jan 2025.
🏆🖨️💰 When the Champions of Inflation hate Bitcoin 🌴 ₿🌴👨🏽🦳💪 Dan Peña has made a name for himself as a successful entrepreneur, investor, and business coach. However, he has also been a controversial figure, with some of his opinions and actions drawing criticism.
🌴 ₿🌴 One example is his stance on Bitcoin, which he has publicly stated will go to zero.
While many experts and investors believe that Bitcoin has the potential to revolutionize the financial industry, Peña has been highly critical of the cryptocurrency. He may not fully understand or appreciate the unique features of Bitcoin, such as its deflationary nature nor does he seem able (or willing) to navigate a rapidly changing economic landscape.
🏆Now let's dive into how this 'CHAMPION OF INFLATION' has created his legacy:
🥁Dan Peña has created jobs and achieved great success through his bold and unconventional approach to business. However, his success has not come without consequences, and I tend to think that Peña's activities have contributed to both inflation and environmental degradation.
🏗️🏢🌇🏢🏭
One of the ways the many Peñas has contributed to inflation is through investments in the real estate market.
By investing in properties and then selling them at higher prices, Peña has been able to generate significant profits. However, this has also led to higher property values, which can make it more difficult for middle-class families to afford homes. In turn, this can lead to inflation as the cost of housing and other goods and services rise. I think you should agree....
🏦🏧🖨️💸💰💰💰💰💰💸
Dan Peña is the GURU of loans. A true LEGEND in borrowing.
A Legendary contributor to Printing and Inflation. Could had been nominated for the 'Federal reserve Client of the year' award.
☞Hear it from the man himself: www.youtube.com
🤦 Simple: Loans means printing = Inflation (on steroids....)
⛽🛢️🏭🚢☢️☠️
Peña's activities in the oil and gas industry have also been a source of concern. While his company, Great Western Resources, was successful in producing oil and gas, it also contributed to pollution and environmental degradation. Oil and gas production is a known source of greenhouse gas emissions and air pollution, and it can also have negative impacts on local ecosystems and wildlife. He doesn't seem like the 'Go green guy' to me (probably still drives Diesel).
🆗👍
While Peña's success in business cannot be denied, it is important to recognize that his activities have had real-world impacts on Inflation and the environment .
As such, it is crucial that we consider the long-term consequences of business activities and work to minimize any negative impacts. By doing so, we can create a more sustainable and equitable economy that benefits everyone.
In conclusion, Dan Peña's success in business has come at a cost, and he can be seen as a case of ''Inflation impersonated'' and environmental impact.
While we should celebrate the achievements of successful entrepreneurs, we must also hold them accountable for their actions and ensure that their activities do not harm society or the planet.
🏆👨🏽🦳💪
Dan Peña, I hereby honor you with the Title of '🏆CHAMPION OF INFLATION🏆.
May you have only great days forth and may your children and grandchildren understand and fix any damage that you have caused to the Economy and the world. For sure you been buying Bitcoin lately despite what you say.
One Love,
The FXPROFESSOR
ps. It is important to note that Peña's activities in the oil and gas industry may have also had positive economic impacts, such as creating jobs and generating revenue. However, it is crucial to balance these benefits against the potential negative impacts, such as pollution and inflation, and to implement policies and regulations to mitigate any negative consequences. As we navigate a rapidly changing economic landscape, it is important to remain informed, open-minded, and committed to building a more sustainable and equitable future for all.
Inflation has not peaked nor slowed down..!I remember last month's forecasts of Goldman Sacks for a lower expectations Inflation rate, but the actual number was hotter than expected and also 1.5x of the average of the past 24 months..!
In 2 days, CPI data will be out (August 10), and with the current momentum, we should not expect a much lower number for July.
The consensus for the July Inflation rate is 8.7. This is a -0.4% rate of change, while the previous month's rate of change was +0.535; I think it is very unlikely that we see the actual number close to the consensus number!
Why is this important?
Because all those speculators who predicted FED will pivot its hawkishness, can not back their claim with any data..!
Inflation is a global phenomenon..!
The most reliable narrative is coming from England: the prediction of Soaring prices is likely to drive consumer price inflation to 13.3% in October, from 9.4% in June, the bank of England said. That will push Britain into recession later this year, with economic output declining each quarter from the fourth quarter of 2022 through the fourth quarter of 2023, bank forecasts show.(npr.org)
I think this will be the scenario for the US too..!
But according to Bloomberg:
"The rate on swap contracts for the September Fed meeting rose as much as 12 basis points to 3.03%, some 70 basis points above the current effective fed funds rate of 2.33%. That implies a hike of at least 50 basis points is seen as definite and a two-in-three chance that it could be 75 basis points.
The surge in short-maturity yields briefly saw the two-year 44 basis points higher than the 10-year, a degree of inversion last seen in 2000, before stabilizing at around 40 basis points higher."
Fed Governor Bowman sees ‘similarly sized’ rate hikes ahead after three-quarter point moves
“My view is that similarly sized increases should be on the table until we see inflation declining in a consistent, meaningful, and lasting way,” she added in a speech Saturday. August 6th.
Conclusion:
The predictions for FED pivoting hawkishness in July by many is premature and not supported by data!
Action plan:
I will bet on higher Inflation, Higher interest rates, Lower GDP, and the possibility of the stock market and Crypto market breaking below their previous lows!
Best,
Marching toward Stagflation..!Stagflation, or recession-inflation, is an economic phenomenon marked by persistent high inflation, high unemployment, and stagnant demand in a country's economy. During a particularly severe period of economic conditions in the 1970s, rising inflation and slumping employment put a damper on economic growth in the United Kingdom and seven other major market economies, and investors in equity markets suffered greatly as a result. (Investopedia)
www.investopedia.com
CPI and Inflation data will be out tomorrow!
"The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers in urban households for a basket of goods and services.
Changes in the CPI reflect changes in the cost of living in the U.S.
The CPI is an economic indicator that is most frequently used for identifying periods of inflation (or deflation) in the U.S.
While the CPI is the most widely watched and used measure of the U.S. inflation rate, many economists differ on how they believe inflation should be measured.
For a more accurate and comprehensive measure of inflation rates in the U.S., look to the Personal Consumption Expenditures (PCE) Price Index, or use the Producer Price Index (PPI) and the gross domestic product (GDP) deflator in tandem along with the most recently reported CPI measurements." (Investopedia)
www.investopedia.com
Now let's look at PCE in the past 2 years:
GDP:
The growth rate of real gross domestic product (GDP) measured by the U.S. Bureau of Economic Analysis (BEA) is a key metric of the pace of economic activity. It is one of the four variables included in the economic projections of Federal Reserve Board members and Bank presidents for every other Federal Open Market Committee (FOMC) meeting. As with many economic statistics, GDP estimates are released with a lag whose timing can be important for policymakers.
What is the FED solution for controlling prices(demand side)?
Nothing but increasing rates..!
Lest look at historical data:
Forecast:
If CPI keeps rising at the same pace as the past 24 months, by the end of October 2022 YOY Inflation rate will be 10.1%..!
Then,
I think it will be highly likely we experience a similar scenario to the 1970-1980
Best,
🏆 CPI: Greatest Bull Of All Times 🏆CPI report is being released in a few minutes and it's expected to be INFLATED...
Inflation is the Greatest Bull of All Times, something like Michael Jordan of the Chicago Bulls:
The trade we like to take at every CPI report is Bitcoin LONG:
Just remember to have some patience (buy a dip if you see it?) and most importantly: HEDGE witha short on Nasdaq (That's what we do here and it works nicely, do your research and do as you please at your own risk).
Americans blame it on Putin but this is partially the truth... CPI was exploding anyways, it has to do with printing more than it has to do with invading Ukraine: nypost.com
let's wish for PEACE. The professor is EXTREMELY DISSAPOINTED by the World Leaders and all the nonsense. US and Russia need to come to reason and stop fighting till the 'Last Ukrainian'. All this horrible situation must stop NOW before more people die and before inflation destroys everything..unless that's what the big bosses are aiming for...
..in the meantime, Buy some Bitcoin maybe?
Do as you please and as you know.
One Love,
the FXPROFESSOR
PS. This is NOT the planet we signed up for! I want to post about geopolitics here soon, even if many will disagree with all I want to say:
I am furious with Russia and the US, with Europe and Greece and also Zelensky. There is a LOT of shit on all sides, just sad. Very sad!
Inflation has not peaked nor decelerated..!Year-over-year (YOY) is a method of evaluating two or more measured events to compare the results at one period with those of a comparable period on an annualized basis. (Investopedia)
The United States Inflation Rate YoY
Food (14% of total weight), energy (9.3 percent), commodities less food and energy commodities (19.4%), and services fewer energy services (57.3%) comprise the unadjusted Consumer Price Index for All Urban Consumers in the United States. The final category is subdivided into three subcategories: shelter (32.1%), medical care (5.8%), and transportation services (5.5%).
A higher than expected figure should be seen as positive (bullish) for the USD while a lower than expected figure should be seen as negative (bearish) for the USD. (Myfxbook)
These factors will cause higher than expected inflation in the coming months..!
Food
Energy
Housing
Soon you should learn a new terminology:
Stagflation
Stagflation can be alternatively defined as a period of inflation combined with a decline in the gross domestic product (GDP). (Investopedia)
I predicted this on June 2021:
Best,
Dr. Moshkelgosha M.D
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Be ready for a very Agressive Federal reserve..!The real economy slows down according to Fed chair Jerome Powell since November 2021..!
Inflation is at a record high in the past 4 decades and could become double-digit (above 10%) in 2022 if the Federal Reserve keeps pumping liquidity in the system..!
If you review my articles about inflation since May 2021, you will see how this pattern was detected before it happens..!
Current situation: we have passed the gate of Hyperinflation thanks to the passive Fed, Now we should wait and see how aggressive Fed will act???
When the Federal Open Market Committee (FOMC) changes the interest rate, it impacts both the economy and the stock markets because borrowing becomes either more or less expensive for individuals and businesses.
Any impact on the stock market to a change in the interest rate changes is generally experienced immediately, while, for the rest of the economy, it may take about a year to see any widespread impact.
Higher interest rates tend to negatively affect earnings and stock prices (with the exception of the financial sector).
For further information read the below article:
www.investopedia.com
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Answer to all the questions you have about Inflation?These days everyone talks about inflation, Hyperinflation, Stagflation,..etc.
You may want to know how you could protect yourself in the high inflation era?
What would be the best assets?
What are the measures governments would take to control inflation?
What is the definition of Inflation, Hyperinflation, Stagflation?
What history tells us about high inflation?
If you are an avid reader you just need to review my past 7 articles about inflation in the past 8 months! (links are provided in the chart)
I am pretty much sure you will find the answer to your questions and also links to good articles for more information!
On May 31, 2021: I warned about accelerated Inflation (my very first Editor's Pick) when Jerome Powell talked about transitory inflation and Cathie Woods talked about Deflation..!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
Debt-Demand-Inflation-Crypto- ! WHAT HAPPENED IN FEBRUARY ! This is CRYPTOFILIO - Your dark knight in the lightness... Your peaches and cream, your crypto dream
Sometimes it's best to look under the bed to find the economic boogeyman!
This chart illustrates the interesting correlations between various macroeconomic factors. There are two key moments of recent divergence. The beginning of the pandemic and recently, February 2021. The first is rather obvious - THE PANDEMIC - but the second event... not so obvious!
Pre-pandemic these economic macro-factors were dancing in lockstep. Debt,Consumer Demand, and Inflation - Then you can see the wild divergence at the beginning of the pandemic. What's not so explainable and kind of interesting is the recent, very noticeable shift in February of this year. The bottom pane is the total crypto market cap (in a different scale). The percentage increase is very dramatic - showing just how much money has moved into crypto.
░▒₿▒░ SATOSHI VS FRED ░▒₿▒░ INDEX:BTCUSD
FRED:CPIAUCSL
Bitcoin vs USD FRED.
35-50% on any given area, already. Hyper-Inflation is akin to the frog in the boiling water. . . As soon as you realize you are being cooked, it's too late! Venezuela dropping zeros (moving decimal places) due to inflation. Now they are backing 70% USD. LLLUUUUULLLLZZZZZZ
i.pinimg.com
We are at the gate of a Hyper Inflation..!In less than 48 hours, we are going to see a new high inflation record in the past 3 decades!
Let's go back a few months ago, on May 30, 2021, I published my first article about Inflation: It was a contrarian view compared to Jerome Powel chair of the Federal Reserve of the united states who believes inflation is temporary and COVID related.
Title: Accelerated inflation in the past year entered a new phase!
On October 13, 2021, I published another article and mentioned my reasons why this Inflation could not be temporary! In that article I mentioned:
I strongly believe anyone who talks about "Deflation" at this moment is either a fool or tries to fool others..!
Title: Inflation Temporary or Lasting?
Now estimations are around 6.7 for US Inflation Rate YoY and this is above 6.4 which could lead to a recession or Hyperinflation!
I think Hyperinflation is the more likely scenario..!
For the reasons you can read my article on June 2nd, 2021 article:
Title: How the government could control inflation?
Anyone with basic mathematical knowledge can see the acceleration in the chart unless try to ignore it:
Conclusion:
I believe the monetary policy of this administration so far is putting fuel on the fire..!
Best,
Moshkelgosha
DISCLAIMER
I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA , an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site.
⏰ Inflation Report Today: Consumer Price Index Accelerating 😧Consumer prices likely surged last month at their fastest pace in about 30 years
Key points:
-Economists expect the consumer price index rose 0.6% in October and 5.9% on a year-over-year basis, the most since 1990.
-The CPI is hotter than economists initially expected it would be, and they now see it staying elevated into next year.
“What we’re seeing is there’s this second wave of inflation that appears more broad based, and it’s also backed up with a sharp increase in wages,”
The consumer price index is expected to have risen nearly 6% in October, the most in three decades. Inflation could remain elevated into early next year, as rents and other costs continue to increase.
The Labor Department will report the latest CPI reading Wednesday at 8:30 a.m. ET. Economists polled by Dow Jones are expecting a jump of 0.6%, or a year-over-year gain of 5.9%. On a core basis, excluding food and energy, economists expect a gain of 0.4% or 4.3% year over year.
“There’s a risk it could be even higher,” Grant Thornton chief economist Diane Swonk said.
“We’ve got some unusual distortions with used car prices, airfares going up and hotel room rates rising,” she added. “You could get some surge prices in services, at the same time you had a snapback in used car prices and new car prices also went up because demand went up with the flooding” from summer hurricanes.
Used car prices were a culprit behind rising inflation in the spring. They fell down in the summer and declined last month, but they could begin to rise again, Swonk said.
If the CPI reaches 5.9%, it would be the biggest year-over-year gain since December 1990. Consumer prices were 5.4% in September year over year.
Rising prices that stick
The spike in consumer prices is hotter and more enduring than many economists, and the Federal Reserve, had initially expected. Inflation has become the top concern of stock market strategists, who say much higher or stickier inflation could lead the Fed to speed up the wind down of its bond-buying program and move on to raise interest rates sooner than anticipated.
“The main theme over the past few months has been that the inflation pressures seem to be broadening out,” Amherst Pierpont chief economist Stephen Stanley said. “The big increases in the spring were driven by just a handful of categories.”
“Those categories started to reverse, but we’re starting to get high readings because a lot of things are turning higher, whether it’s shelter costs, or other service categories, like recreation,” he added.
Stanley expects a 0.7% gain in headline CPI and a 0.4% increase in core prices.
Shelter is about a third of CPI, and it has already been rising. Rent was up 2.4% year over year in September, and the owners’ equivalent rose 2.9%.
Much of the inflationary pressures have been blamed on supply chain issues and the rising cost of commodities, particularly oil.
Stanley said he does not expect the high year-over-year gains in CPI to subside until comparisons are easier in the spring.
“What has the Fed concerned is they thought we’d get three or four months where used car prices and airfares were shooting up and then we’d go back to normal,” Stanley said. “What we’re seeing is there’s this second wave of inflation that appears more broad-based and it’s also backed up with a sharp increase in wages.”
“When these commodities prices rise sharply like this, they usually reverse once the rising force dissipates,” he added. “But when wages accelerate, wages are not going to reverse, but the pace of wages might normalize.”
Stanley said inflation has proven more persistent than he had initially expected. One example he cited was the new car market: Manufacturers have had difficulty building enough cars because of parts, particularly semiconductors.
“When you went back and heard what the automakers were saying, we were always two or three months away from trying to unwind the chip problem and here we are a year later, it’s just as bad as it was at any point,” he said. “Nobody expected the magnitude. You had the easiest fiscal policy ever in response to Covid, and you had the easiest monetary policy ever.”
In other words: Inflation might be transitory or not, we will find out but both Gold and Bitcoin can rise today. Hedge against inflation.
One Love,
the FXPROFESSOR