Guest Post by Martin Armstrong
“I don’t see the ‘stag’ or the ‘-flation’,” Fed Chairman Jerome Powell said during his Wednesday address.
Powell believed inflation would be “transitory.” He believed that the economy would come down for a “soft landing.” He believed we would enter the year and see numerous cuts due to waning inflation coming closer to the fictional 2% target. Yet again, Chairman Jerome Powell has missed the mark on stagflation.
Continue reading “Jerome Powell on Stagflation”
Guest Post by David Stockman
What do you expect? According to Joseph Biden, as conveyed through the teleprompter, we are already in the clear:
“No,” Biden said when asked by CNN’s Jake Tapper if Americans should prepare for a recession.
“It hadn’t happened yet,” the president added later. “I don’t think there will be a recession. If it is, it’ll be a very slight recession. That is, we’ll move down slightly.”
No, not even close. The virulent inflation that has been unleashed on the world by the central banks and the Washington war machine is now so deeply embedded that it will require what President Eisenhower’s Treasury Secretary back in the day called “a hair-curling recession” to bring it to heel.
Today’s PPI report for September should remove any cause for doubt. That is to say, the Fed has raised interest rate by 300 basis points in the last six months, yet the upstream inflationary pressures embodied in the producer price index have not even budged.
Continue reading “Inflation and Recession are Becoming Entrenched”