Good morning, everyone. Well, the hotly-anticipated CPI numbers are at, and equity bulls have breathed a sigh of relief. CPI came in a little cooler than anticipated, which means Powell’s hands are not tied if he needs to use a salad-shooter to distribute more trillions of stock buyers.(more…)
Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
Powell has continuously offered the canard that, yes, trillions of dollars of fresh fiat have been thrown into the market (mostly his banking buddies), but, magically, inflation will just be a blip. Well, month after month of data seems to be contradicting that, as this morning’s latest report indicates.(more…)
Our usual Italian deli sandwich, in better times: Bresaola, arugula, sliced Parmesan, olive oil, and fresh-squeezed lemon juice, on Italian bread.(more…)
Our 30 year Treasury yield ‘Continuum’ chart indicates that deflation is the dominant trend, but…
Steve Saville has written a post that got me thinking about carts and horses and more precisely, which comes before which. Is the inflationary horse pulling the deflationary cart up hill or is the deflationary cart leading the horse to drink from the shrinking liquidity pool periodically?
In conclusion to this short post Steve asserts…
“The crisis-monetisation cycle doesn’t end in deflation. The merest whiff of deflation just encourages central bankers and politicians to do more to boost prices. In fact, the occasional deflation scare is necessary to keep the cycle going. The cycle only ends when most voters see “inflation” as the biggest threat to their personal economic prospects.”
And over the course of decades now that is exactly the case. Every damn time that the public becomes terrified of declining asset (especially equity) prices the Fed springs into action.(more…)
Market liquidity is draining from different vantage points
On Wednesday I made a post that showed the “metallic credit spread” (as coined by Bob Hoye) known as the Gold/Silver ratio (GSR) flipped on its head (to Silver/Gold) to indicate a dangerous situation for the S&P 500, if past is prologue. Here is that post and here is the Tweet that followed…
You can see the tweet and expand the chart here.(more…)