I’m Fed Up With The Fed’s BS

BS Alert - Miller on the MoneyThey claimed inflation was too low, shooting for an “average 2%”. Inflation raged and they called it “transitory”. Now they are pretending to deal with it, predicting a “soft landing.”

Peter Schiff asks, “If the Fed is fighting inflation, why is the balance sheet still expanding?”

World News reports Jamie Dimon, CEO of JPMorgan (part-owner of the Fed), told shareholders:

“He did not envy the Fed for the steps the US central bank would need to take to end its ultra-loose policies….

If the Fed gets it just right, we can have years of growth, and inflation will eventually start to recede. In any event, this process will cause lots of consternation and very volatile markets.”

MarketWatch tells us Fed Gov. Waller says inflation may have peaked in March:

“Inflation may have peaked in March and there could be some relief on the way….

I’m forecasting that this is pretty much the peak, it is going to start to come back down.

Higher market interest rates should start to take a bite out of demand, and oil prices have already retreated after spiking when Russia invaded Ukraine, he noted.”

Enough with the BS, they are lying to the public.

It’s time to contact Fed Expert, Chuck Butler. Chuck writes the Daily Pfennig and pulls no punches. While the Fed instituted a ¼% increase in interest rates, and announced (without a formal vote) they may get out of their bond business, Chuck isn’t buying it:

“I truly don’t expect that the Fed/ Cabal/ Cartel will carry out their plans to reduce their bond holdings by $95 Billion a month for very long before aborting that mission. ….

I believe they need to reduce their balance sheet, but this should have been done long ago, not now…. And what happened to the plan to deliver us a soft landing for the economy?

DENNIS: Chuck, on behalf of our readers, thanks for your time. The Waller and Dimon comments made me angry. I want to share some information with our readers.

"Whip Inflation Now"In 1974 inflation reached 10%. Remember the stupid WIN (Whip Inflation Now) buttons. The government felt encouraging personal savings and disciplined spending habits with the public would get the job done. Inflation dropped temporarily and they claimed victory.

This FRED chart shows it was a political farce:

FRED Chart: Inflation, consumer prices for the US

 

Inflation peaked at 14.8% in March 1980. It took a massive effort by Fed Chairman Paul Volcker, raising rates to almost 20%, to bring inflation under control. It caused a recession, raising unemployment to nearly 11%.

The BLS (Bureau of Labor Statistics) now gerrymanders the calculations for political purposes. To truly compare inflation in 1980 with today we need to go to ShadowStats.com:

Shadowstats.com Chart: Consumer Inflation - Official vs. ShadowStats (1980-Based) Alternate

Using the 1980 calculation method, inflation is now higher than the Volcker years.

Chuck, the numbers show the real challenges we face. Waller says we may have peaked and Dimon says “If the Fed gets it just right, we can have years of growth, and inflation will eventually start to recede.”

Twofold question. What is your reaction to these remarks? Is a soft landing, meaning to me a short recession, even possible?

CHUCK: Thanks again Dennis for allowing me to opine for your readers. This is a perfect example of the Fed deliberately misleading the public.

I too was angered by Waller’s remarks… Didn’t he hear that China was in lockdown, which included their ports? No exports… That creates shortages, and shortages create price increases.

The next day, the Fed releases their Beige Book, which is a record of the pulse of each Fed Region. They all said that “Inflationary pressure remained strong since the last report. Multiple Districts reported spikes in prices in energy, metals, and agricultural commodities following the Russian invasion of Ukraine, and several made note of Covid-19 lockdowns in China, worsening supply chain distributions.”

So, my question to Mr. Waller would be, Didn’t you read your own organization’s report? What a dolt!

As to the second question, let’s stop bailing out Dimon’s bank and see how long before it goes under. Much of inflation deals with expectations. Despite Powell’s tough talk, his actions don’t match, few believe he is serious. I just don’t see a “soft landing” happening, the bubble is just too big.

DENNIS: CNBC tells us:

“Supplier prices rose 11.2% from a year ago in March, the biggest gain on record. ….

PPI is considered a forward-looking inflation measure as it tracks prices in the pipeline for goods and services that eventually reach consumers.

Wednesday’s release comes the day after the BLS reported that the consumer price index for March surged 8.5% over the past year, above expectations and the highest reading since December 1981.”

The government can blame the Russians, Covid, whatever until hell freezes over, but the Fed created $8 trillion in fake money since 1999; half of that in the last two years.

The public is fed up. What will force the Fed to act responsibly?

CHUCK: Remember when Janet Yellen was the Fed Chair, and she was headstrong to raise rates and then she got a call to report to the White House? It would take immense pressure from the White House on the Fed to act responsibly.

Emoticon making deny signLet’s not forget unemployment hit 11% and Carter was a one term president. Even if a president was in his second term, and wanted to do what is right, I doubt his party would support him.

For the (theoretically independent) Fed to act responsibly would put them into Paul Volcker mode. When Inflation hit 13%, he raised rates to 20%. Even if we use the watered down 8.5% CPI measure of inflation, that means the Fed would have to hike rates to 15%. Our internal rate is less than 1%. Even IF the Fed regularly raises rates 50 BPS (1/2%), as they say they will, rates will still be below 2%… How’s that going to fight inflation?

It will take something radical to force the Fed to change course.

DENNIS: Wolf Street reports on various types of inflation:

“WHOOSH, Dollar’s Purchasing Power Goes to Heck

Energy costs exploded by 11.0% for the month and by 32.0% year-over-year. …. Among them:

  • Gasoline: +18.3% for the month and +48.0% year-over-year.
  • Utility natural gas to the home: +0.6% for the month and +21.6% year-over-year.
  • Electricity service: +2.2% for the month, +11.1% year-over-year.”

Gas prices are based on supply and demand. The government killed the Keystone Pipeline, and discourages domestic drilling and production. The cost of transportation affects most everything we buy.

Isn’t the government contributing to rising inflation?

CHUCK: The simple answer is yes. Last time around OPEC cut production and oil prices skyrocketed affecting the cost of everything we buy.

So, why is the government doing this?

Ahhh grasshopper, come sit, and listen to what I’ve been saying to my readers for over a decade now… There’s no way in hell the enormous U.S. debt will ever be paid down… The CBA says that it will be $50 Trillion in less than a decade…

What to do? Oh! I know, I know, call on me Mr. Kotter! The government will allow inflation to eat away at the debt. If we have 10% inflation, and $50 trillion in debt, the purchasing power of the debt dropped by $5 trillion.

So, the government needs some inflation, not runaway inflation, but some to help eat away the debt… But this inflation we’re seeing now has gotten way out of hand, and it’s like trying to put toothpaste back in the tube…

DENNIS: One final question. Let’s put the numbers aside.

Thomas Jefferson warned, “The end of democracy and the defeat of the American Revolution will occur when government falls into the hands of lending institutions and moneyed incorporations.”

It looks like it is us or them. Will the government allow the “too big to fail” banks to fail? If not, what happens?

CHUCK: Thanks again, Dennis.

Last year, I wrote a special Pfennig describing what I felt would happen globally. With all the debt in the world there eventually will be a default in a country. Once that happens, there will be a domino effect of defaults, and I wouldn’t exclude the U.S.

Today I feel it just may happen sooner than I first thought… Especially IF, the Fed goes back to square one and start bailing out banks again, running up more debt, and making things even worse!

I predicted that once the default comes, the Fed and the Gov’t would introduce Digital currencies. The Gov’t will tell us they can defeat criminals and bad behavior in finances… But that’s all baloney… They will be doing it to divert attention that we just defaulted! Also, expect cuts in Social Security and other “unfunded” government promises.

I’m with you on the BS. The Fed knows what must be done. The government and Fed don’t have the courage to bite the bullet and do what is right.

roman emperor cartoon isolated on whiteDennis here. Many thanks, Chuck. It’s time to stop the BS and serve America. The Fed/government knows what must be done but chooses to fiddle while the nation burns. The political class will suffer if they act- or if they do nothing. Stay tuned….

FREE: A 7-Step Questionnaire – Am I A Candidate For An Annuity?For more information, check out my website or follow me on FaceBook.

Until next time…

Dennis

www.MillerOnTheMoney.com

“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken

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i forget
i forget

Apex predator/carnivore always gets FED … cuz institutionalized apex’s & antapex’s is immortal … I can’t get set so I guess I’m here to stay
Till someone comes along and takes my place
With a different name oh and a different face ~ which is all that “changes” – even when it doesn’t (young Greenspan, the goldbug, versus old Greenspan, the quant-fiat redfloodmeister).

Cuz homo ain’t the social animal s/he loves to counterclaim … homo’s the martial animal (war is the continuation of politics by other means ~ von Clausewitz) – & nuthin’s more antithetical social than martial…Dillon…& no amount of picklejuice soaking alchemizes the one into the other.

ran t 7
ran t 7

“war begins with defense.” clausewitz

i forget
i forget

Nonsense. Defense against what? Acts of war, no matter the scale, or the “temperature,”or the fight/lack-of-fight in those aggressed against, begin with aggression, offense, trespass.

Avuncular Sam, the squinty-eyed would-be shanghaier ~ & not the “domino-tilting” Vietcong ~ committed no less an act of war, for calling it “induction,” against Ali in ’67, for an example among multitudes.

ran t 7
ran t 7

“If the Fed (says it) is fighting inflation, why is the balance sheet still expanding?”

simple. because they’re lying.

by law the “federal” “reserve” fiat debt dollar is backstopped by all u.s. assets and collateral. if the dollar defaults then the fed’s owners move to confiscate all u.s. assets and collateral.

so they’re driving us to default. simple.

Steve Z.
Steve Z.

They were creating currency to the tune of 120,000 piles of $1 million dollars per month. Now, it’s down to “only” 95,000 piles of $1 million dollars a month. That’s what we know of (?).
How about the $Trillions sent to support other Central Banks that we know nothing about but can only surmised and
their litany of special purchase programs.
It’s mind boggling and theft of the grandest scale from all Americans.
Yes, the FED is more dangerous than a standing Army.

Anonymous
Anonymous

WOW !!
Dennis is finally fed up!
Perhaps now things will get better.

Stucky

Glad you’re “fed up”.

Whatchya gonna do now? Open your window and scream “I’m mad as hell and I’m not gonna take it anymore.”?

Marky
Marky

Single qualification? Someone who actually adheres to the constitution. Good luck with that. I’m guessing but maybe 5% of all elected officials actually believe in defending and adhering to it and the Bill of Rights. Probably to optimistic.

Anonymous
Anonymous

Inflation is just a new form of an old scam: coin clipping. They’re just doing it to the entire money supply simultaneously.

There is only one way to end it.

https://www.haaretz.com/jewish/.premium-1278-all-english-jews-arrested-by-crown-1.5291031

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