Reality is all that previous excessive money printing has goosed up prices far above the long term core trend.
And only a hard landing would even have a shot at bringing it back to trend, otherwise the future is clear: Permanent higher prices and cost of living with wages not having kept up.
And the poor and middle class will end up paying for the Fed’s original policy error for many years to come while the top 1% again gets all the asset gain benefits.
But nobody talks about this for the Fed never faces consequences for its mistakes. You are.
Instead they would get celebrated for a soft landing and Powell would get his ‘Hero’ glossy magazine cover as Bernanke did.
But yea, a hard landing would also again hurt the poor and middle class the most.
That’s the system we have & that’s why the middle class keeps shrinking decade after decade.
I don’t have the answer, I can just observe reality.
Sticky Price Consumer Price Index less Food and Energy
Not anywhere near normal.
What brings them down to par historically?
Hint: Grey areas = recessions pic.twitter.com/8Xm4hdIlOn— Sven Henrich (@NorthmanTrader) August 10, 2023
He chokes on this question because it SHOULD be 0%. It was ALWAYS 0% until Bernanke
Why? Because the rich want to keep printing and inflating.
Inflation only hurts the poor and middle class. t.co/79Y6vIbdNh
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) August 10, 2023
We’re screwed.
"THE US CONSUMER IS IN GREAT SHAPE"
Really?
Revolving Credit (credit cards) breaches $1 trillion for the 1st time, +16.2% Y/Y, 2nd fastest growth ever
Credit Card Interest Rate at 22.2%, the highest in at least 30yrs
Consumer Bankruptcies & foreclosures up +17.4% Y/Y
— Hedgeye (@Hedgeye) August 10, 2023
BREAKING: The US spends another $73.3 billion on interest in July 2023 alone bringing YTD total to $726 BILLION.
We will soon see the first ever 12-month period with $1 trillion+ in interest expense on US debt. pic.twitter.com/NiIh42pRzo
— The Kobeissi Letter (@KobeissiLetter) August 10, 2023
The US government continues to spend money like a drunken sailor w/ the budget deficit widening to $2.3 trillion. This is occurring when the economy is still in an expansion with the Unemployment Rate near a 54-year low at 3.5%. What happens to the deficit when a recession hits? pic.twitter.com/bdI7luW2Ik
— Charlie Bilello (@charliebilello) August 10, 2023