eNewsletter

RIP 2% Inflation

Manufactured economies never end well. I recently wrote to our paid subscribers about the manufactured economy that we’re all currently living in… I called it a “fake” economy.  Real economies thrive by producing value. Fake or financial (i.e. manufactured) economies thrive on debt.  Debt becomes more and more necessary when you can’t pay your bills with …

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Why “Unanchored Expectations” Aren’t Driving Inflation

A lot of people are obsessed with appearances.  That includes the folks at the Federal Reserve. I’m not talking about their personal appearances. All of them look perfectly fine on TV in their tailored suits. The appearances they care about are economic. Specifically how people’s financial futures appear to them. In other words, what people …

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Welcome to Recession-ville

Time for a pop quiz… Q. What’s the sworn enemy of inflation? A. Recession. Recessions aren’t just the enemy of inflation, they’re its natural antidote.   That’s because recessions slow everything down. People buy less stuff. Manufacturers produce less stuff. Farmers plant less stuff.   If nobody’s buying, prices can’t go higher. The fact of the matter …

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A Bottomless Pit of Debt

Captain Jerome Powell of Air-Fed has the US economy on final approach for what he hopes will be a “soft landing.” The phrase “soft landing” (if you’re not familiar, it’s because it’s been shelved for a number of years) means hiking interest rates to cool the economy without crashing us into a recession. But just …

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