INFLATION

Another 20% Dollar Tree Inflationary Warning

by John Galt May 2, 2016 20:20 ET A little over a decade ago, I pointed out the hypocrisy of product size inflation in an old article about my Dollar Tree inflation indicator. I noted, of course simple things like 4 packs of batteries being changed to 3, 16 oz. of dry cereal being reduced to 12 oz., and candy bars being reduced from 6 oz. to microscopic specs of something wrapped in paper. Today, I encountered something amazing at the U.S. discount retailer the Dollar Tree which should alert everyone…


Your Pre-Thanksgiving Hyperinflationary Warning Sign that Most Will Ignore

by John Galt November 30, 2015 20:50 ET Should Treasury Ditch the Penny? It’s Under Review The Treasury Department, which has already announced plans to put a woman on the $10 bill, is also conducting a review to see if it still makes sense to keep the penny. This article from November 24th under the Wall Street Journal’s Real Time Economics blog should be a warning of to what is coming for America’s future. Yet it hardly caught a wince or a smile as most of us were getting wasted on…


Think the Fed has a Clue? Let’s Review 2008 and Think Again

by John Galt September 27, 2015 02:30 ET In the past week, Federal Reserve Chairwoman Janet Yellen endured a health scare which sent shudders throughout the financial world. Thankfully she later reported it was just dehydration and everything was fine, however her immediate health related issue should not be what terrifies investors; it should be the fact that the Federal Reserve has no clue as what is happening or what to do with the current economic situation. Let us review recent history, say way back in 2008 for a historical guide….


Did the Fed Trigger Another Stock Market Crash on Monday August 31?

by John Galt August 30, 2015 19:00 ET As of this past Friday, August 28th, the Federal Reserve, the Plunger Protection Team (PPT for short), and the financial infomercial media had been screaming “Mission Accomplished” as they helped to goose the Monday and Tuesday disaster into a gain for the week. Unfortunately for the financial media and more of the cheerleaders, futures are down again as this article is being published: (courtesy of FinViz.com 15 minute delay): If anyone pays attention to the Jackson Hole, Wyoming conference this weekend hosted by…


The Federal Reserve’s Hidden Warning in the FOMC Statement

by John Galt July 30, 2015 04:30 ET Yesterday the Federal Reserve’s FOMC released the following statement triggering another cyber rally along with more promises of nirvana on Wall Street: Release Date: July 29, 2015 For immediate release Information received since the Federal Open Market Committee met in June indicates that economic activity has been expanding moderately in recent months. Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft. The labor market continued to improve, with…


Russia’s Collapse Demonstrates Why One Should Own Gold in One Simple Chart

by John Galt December 16, 2014 19:10 ET The naysayers on CNBCFBNBBGCNN and various “financial” experts have long proclaimed that gold is a worthless investment, that over the years it provides little if any return, and that the risk of a collapse in the United States is so low why waste one’s time or money on purchasing risk insurance like precious metals when paper alternatives are better. What they did not tell you is that many of the same pundits were lying through their teeth and buying physical gold, land, guns,…


TSHTF Inflation

  by John Galt March 21, 2014 20:15 ET 20 cans of Tuna? Check 100 MREs? Check. 20 bushels of Corn? Check. 2 rolls of pre-1964 ‘Junk’ Silver dimes? Check. 400 rounds .22 LR? Check. 500 rounds .223 ammo? Check. Sounds like a nice stash of survivalist/prepper goods to start with doesn’t it? I could continue on with the list but it only begins to belie the myth that sadly so many members of the prepper community believe to be their ideal that they are 100% prepared for the collapse of…


Chinese Inflation Eases Unexpectedly as Economy Slows

  by John Galt June 9, 2012 07:15 ET   The Chinese Communist Economists learned from the best and in the tradition of the American Bureau of Labor Statistics, the mythical Consumer Price Index inflation data was released this morning (From Xinhua):   China’s inflation eases further, more monetary easing expected   BEIJING, June 9 (Xinhua) — China’s inflation unexpectedly eased to a 23-month low due to falling food prices and base effect, providing ample room for the government to boost slower-than-expected growth in the world’s second-largest economy.   The consumer…


CPI is “Tame” but not for the reasons the Media would have you believe

by John Galt May 15, 2012 22:30 ET   The usual suspects are at their propaganda inspired best with the monthly BLS report on consumer prices. The mainstream media has the usual headlines:May 15, 2012 22:30 ET   US Consumer-Price Index Unchanged; Core Rate Climbs 0.2% US April consumer prices flat as gasoline drops US consumer prices flat as gas costs fall   In other words, gas distorted reality as the reality is that the impacts on things the average American need or use every month increased except for electrical utilities…


Silver Mirrors Gold’s Decline but a Massive Rally will Follow

by John Galt May 9, 2012 19:00 ET   If one is led to believe the usual nonsense on the Bubblevisions, gold, silver, and anything that is considered “real money” will be smoked in the weeks to come.   For once, this esteemed, or full of steamed clams, blogger agrees.   The markets are indicating the following for long term paper silver bulls (I emphasize PAPER SILVER BULLS)   1. Severe correction.   2. Deliberate price suppression for industrial purposes.   3. A move to prevent a delivery crisis from various…


Why Gold will go up 100% by the end of 2013 (if not sooner)

by John Galt March 30, 2012 05:00 ET   The world is on fire, the banking system in total confusion and preparing for another great consolidation, Europe is teetering, and what does the Federal Reserve Chairman, aka “America’s Financial Academic,” decide to speak on during some collegiate lecture series? The Federal Reserve and the Financial Crisis (click on the title to read the story in full) Any of my readers can click on the link above to watch the series or read the program in detail, but to save everyone the…


It’s Time to Accept Reality that it’s Too Late

by John Galt February 26, 2012 21:55 ET Hard as this to believe, I’m no longer going to pound my head on an exposed nail in the wall and preach to the insane that the world is about to end. In fact, I have no intention of any longer telling the foolish that the world is about implode. I’ve warned. I’ve preached. I’ve provided the warning signs. The financial system is irrevocably broken and the idiots in charge continue to preach that all is well, keep moving. Why should I or…


The 1-3-6 Month Treasury Bill Yields are not Signalling the All Clear

by John Galt January 8, 2012 20:45 ET The incessant screaming that the markets are fine, the economy is recovering, and don’t worry about Europe as we’ll bail them out and life will move forward into a new era of unicorns flying across the skies, painting them purple as they poop rainbows and Skittles. Of course what the bubblemedia, economists, and some biased news broadcasters, er, scratch that, all biased newscasters, will not tell the average viewer is that literally hundreds of billions of dollars are tied up in short term…


12.30 V of Galt: Predictions 2012 Live and in Color

By John Galt December 30, 2011 07:50 ET Buckle up. 2012 is almost here. Last year I was so-so in my predictions and for 2012 I probably will be also. If you are meek put on your Depends for this show or just assume the fetal position when the theme music stops. In the first half hour I’ll cover the news of the day, the financial news and then begin the prognostications which cover geopolitics, sports, U.S. politics, the economy, weather, and whatever else I feel like. There are no guarantees,…


11.30 BREAKING NEWS: World Central Banksters announce another Inflationary Bailout

By John Galt November 30, 2011 – 08:05 ET Breaking news on all the financial media outlets: Global central banks announce interest rate cuts on dollar swaps to boost liquidity. The Federal Reserve plus banks in Canada, Switzerland, Japan, England, and European Central Bank are all participating. Needless to say the pump monkeys are going wild in world equity markets. More information as it becomes available. And yes, gold is going nuts:


October C.P.I. for Necessities – Operation Occupy Inflation in your Wallet

By John Galt November 16, 2011 – 08:45 ET The big buzz today will be “see, we’ve tamed inflation” but the reality is that it was a month over month drop in the overall rate of inflation, not a decrease in prices for the things the average person needs to survive. Since the average American has fallen prey to this propaganda and believes that a 0.1% drop in the headline number suddenly means their 16 oz. cereal box will return any day now at the same price (wish in one hand,…


FOMC in Summary: Welcome to the United States of Sisyphus

By John Galt November 3, 2011 – 13:00 ET Instead of making your teeth itch and your brain hurt, the bottom line is this: There will be no more Quantitative Easing in 2011. This leaves the American economy wide open to any liquidity shocks created by the Eurocircus which is now entering its most dangerous phase as the U.S. central bank and government fail to understand just what it means not only to subjugate a population against their will, but how to finish the process without using military force. The Greeks…


Monthly CPI Necessities Update: Glad I don’t Eat, Drive, Smoke, Live in a House, Get sick, go to college, or wear deodorant

By John Galt October 19, 2011 – 12:30 ET Thankfully inflation is under control. Good job Ben! Of course if you do anything but wash your car daily, get some sort of legal service (Sorry Congress, she doesn’t count; Barney he doesn’t either per the BLS) buy a new home every month, buy a new computer every month, OR use “video services” then this month’s CPI report might hurt. But politicians, Federal Reserve officers, people investing in anything but precious metals, and morons telling you that a negative 0.4% yield after…


August 2011 C.P.I. Data: Don’t Drink, Don’t Smoke, Don’t Eat, Don’t Drive, No Problemo

By John Galt September 15, 2011 – 17:00 ET Of course even Goody Two Shoes had to eat, live in a house, and maybe, just maybe, got the sniffles. Unfortunately for the American consumer, and somewhat to my shock, the BLS was unable to manipulate the Hedonic Horror known as the Consumer Price Index and create a deflationary indicator to validate the Fed’s wave of liquidity and next shove against the string to save their precious banks while destroying American citizen’s ability to earn a dime on their savings or purchase…


Food Crisis Update: S. Korea Rice Output to hit 10 Year Low

By John Galt August 28, 2011 – 22:45 ET From the South Korean news agency Yonhap August 29, 2011: S. Korea’s rice output to hit 10-year low this year SEOUL, Aug. 29 (Yonhap) — South Korea’s rice production is forecast to hit a 10-year low this year due to shrinking farm land and lower yields caused by unfavorable weather conditions, a state-run think tank said Monday. According to the Korea Rural Economic Institute, rice production is expected to reach 4.12-4.24 million tons this year, down 1.2-4.0 percent from the previous year’s…


CPI Necessities & CPI Cash for Clunkers Chart Updates

By John Galt August 22, 2011 – 10:00 ET The charts that I have been maintaining for over a year now are available within the economic charts pages to the right for permanent review and of course, after the releases on these pages. Now that my schedule has gone from just madly insane to regular insane, these charts will be updated in a more timely manner. No commentary really is necessary because the Federal Reserve doesn’t eat, doesn’t drive or pay for their own gas and vehicles, and medical care is…


1-3-6 Month Treasuries adjusted for CPI-U Core Rate Reflect the Economic Devastation

By John Galt July 20, 2011 The economic situation began to deteriorate in February of 2007 as mid-sized lenders in the mortgage and finance industry began to collapse as has been documented for years now by this blog and many others. However the situation which indicates the strongest evidence of a lack of recovery for the economy as a whole has been the yields on the 4 week (1 Month), 3 month, and 6 month Treasury Bills which have been trading near zero for years because investors and nations have been…


New Zealand becomes the latest Victim of Transitory Inflation

By John Galt July 18, 2011 The headline from this morning’s New Zealand newspapers like ThePress says it all: Inflation hits 21-year high With a 4.5% inflation rate and a projection that it will go much higher as the nation recovers from those horrific earthquakes earlier this year, it is little wonder that importing inflation from the bankrupt financial systems of the world is the last thing they need as the country rebuilds. This chart created with the official data from the Royal Bank of New Zealand shows a C.P.I. on…


No Picture

Chinese Food Prices Skyrocket after Drought and now Flooding

  By John Galt June 19, 2011 The crisis of the drought causing massive problems within Chinese agriculture in the central and northwestern portions of the country are now being complicated further by floods in the Southern part of the nation. Meanwhile, as outlined in a story from Xinhau this morning, Heavy Downpours damage farmland, inflates food prices in Eastern China, a substantial portion of production has already been impacted with little relief in sight. From the story: “This is the biggest flood I’ve ever seen in 20 years,” Fu said,…


No Picture

Q1 Revised GDP: Welcome to Stall Speed

By John Galt May 26, 2011 All you need to know why this report from the Bureau of Economic Analysis is indicating the economy is at stalling speed: – 2nd revision was the same as the advanced report at 1.8% despite a consensus of 2.2% and some estimates it would be revised as high as 2.5% or more. – Core PCE was 1.4% revised down from 1.5% indicating fading demand in the face of inflation for consumer necessities. – Current-production cash flow (net cash flow with inventory valuation adjustment) decreased $11…


No Picture

CPI Necessities Chart for April 2011 – It’s Transitory

By John Galt May 15, 2011 It is becoming somewhat spooky when the words of Ben Bernanke haunt the mind, week after week, thus I shall do the best that I can to escape this transitory trap he has placed most commentators into. Except in this case the “official” CPI report from last Friday was without a doubt seriously a transition before a major commodity crash brings the prices down the BLS creates out of thin air and allows the Fed even more room to monetize every living thing, dead thing,…


No Picture

Gas and Diesel Prices Indicate Another Economic Crash: 2008 Redux

  By John Galt April 11, 2011 The myth that the American consumer is back being perpetuated by the financial infomercial networks and our government is about to be shattered once again. The proclamations by Fed governors that we the people are participating more in the economic engine ignores the declines in compensation compared to inflation since 2002 when the Fed and U.S. government elected to inflate the system at all costs rather than face a necessary recession to flush the system. This policy continued unabated throughout the last decade with…


Prepetorial #17: “Your Change, Sir”

By John Galt May 19, 2008 Poor Mike. First his wife bounces a check at the local department store (See Prepetorial#16) and then he gets drilled with a chip into his hand to get out of jail. The chip was causing a red sore on his hand but it couldn’t be there because the charming witch used a power drill, or so he thought, to implant it. Then of course on the way out of jail every two bit thug in the “Enforcement Division” took what little cash he had out…


The Three Little Pigs (Adjusted for Inflation)

By John Galt February 6, 2008 Once upon a time there were three little pigs. Each of the little pigs had their own ideas but two of them went to public schools where they were trained in Keynesian idealism while the third little pig won a scholarship to Hillsdale and learned the Austrian economic theory. The first little pig took one look at the other two and walked off muttering “you two are so ignorant! I’m taking advantage of my agricultural subsidies to build my house.” And with that he elected…


Prepetorial#8: End of the System

By John Galt November 28, 2007 The final vote was Yeas 398, Nays 21 and with that announcement on the floor of the House of Representatives, the motion was forwarded to the U.S. Senate in a rapid manner. The date was November 3, 2011 and the legislation was on the fast track to pass both houses and to be signed by Madame President the moment it hit her desk. The business community lobbied hard but considering the economic conditions drastic action was necessary. The newspapers blared the headlines the next morning…


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