The CPI numbers just came out, and they tell you what you already know from all your grocery shopping, your gas-tank-filling, and your bills-paying. We have 0% inflation. Absolutely.
Look, this is simple: the members of the FOMC are human beings and, as such, as innately political. They want to be left ALONE, and if the current administration loses in five months, the Fed is going to very-much-not-be-left-alone. It’s already been made clear by the opposition that they want much greater oversight and control over the Fed.
Thus, these government-generated numbers, which proffer the preposterous postulate that inflation is now utterly gone, will embrace this fakery and use it as an excuse to start moving rates down. As such, the market is having an absolute bullgasm right now, lurching across the board to never-before-seen values. Here’s the /ES:
As I keep saying, all assets have become one and the same. The charts below look roughly identical, even though they represent bonds and gold, neither of which are anything close to being corporate equities.
I am braced for a positively brutal opening and truly have to wonder if we’re going to have a downtick until this election takes place.
