CPI for December comes in hot

Inflation running at 3-4% annually may look pretty good by mid 2024.

How can that be? Bidenomics is so wonderful! How dare you use real data and not stick to the Dim narrative.

quote:

---

Nah man, I have it on good authority that it only appears that our dollar is not going as far at the grocery stores... Trust the Turnip...

---

The majority of Americans, particularly those who vote Dim are unaware that 20-25% inflation over the past 3 years is akin to losing 20-25% of their purchasing power or it's like taking a pay cut of 20-25%

quote:

---

particularly those who vote Dim are unaware that 20-25% inflation over the past 3 years is akin to losing 20-25% of their purchasing power

---

Well, when you are on government assistance and it is raised and you are not having to work for it, then I would not expect them to understand what the working folks are going through...

Anyone that is working out a living in this country understands their dollar is not going as far as it was a couple of years ago... Now who they blame for their woes is another thing...

This is all by design and the electorate in general is stupid when it comes to personal finance...

quote:

---

That ship has sailed and now more recently, I've been blasted for saying rates needed to be double digits to fix it. Rate cuts in 2024? Rate CUTS? Sure, if you want to throw gasoline on a fire. FFS. I'm JAFG and I understand it. Surely the "best and brightest" do too.

---

The Fed is as much political as it is a manager of monetary policy.

quote:

---

The Fed is as much political as it is a manager of monetary policy.

---

This is true.

Another thing that is often overlooked is the relationship between Monetary policy and Fiscal policy. They are controlled by 2 different entities (FED vs. the government).

They can work together (in either direction, expansionary or contractionary), they can cancel each other out, or one can slowly overpower the other.

The FED can raise rates all they want (contractionary Monetary policy), but if government spending grows (expansionary Fiscal policy), the hikes have little effect, are blunted, or at best, they're delayed.

The FED has to have the balls to overpower this stupid government's expansionary policy. But doing so means massive rate hikes, which obviously hurts businesses and will break a few things. Even then, the government could continue to hook itself up while everyone else suffers.

Aren't we screwed with the debt situation if there are rate hikes? I came across some doom porn at the end of last year that had me thinking this.
Underestimating Washington D.C.'s debt trap.
Twas the Financial Nightmare Before Christmas podcast.

quote:

---

Powell better not take his foot off the brake.

---

JPow isn't breaking, just cruising.

Inflation is remaining extremely sticky at just under 4%, the only thing keeping it from going back up is that energy costs have dropped (and are still trending downward). That's a GREAT thing, but if the House of Saud decides to tighten production, it could send inflation back up.

The market lives on hopium, anyone expecting 6 rate cuts in 2024 is/was delusional. We'll be lucky to get 3.

quote:

---

Trust the Turnip

---

You know, I actually trust the cranial capacity of a freshly harvested turnip far more than I trust President* Potato Brain.