Different States, Different Prices
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.
Two Ice-Cold Reports
There we have it: back-to-back reports of inflation data which indicate that rising prices have pretty much left the building. Both the CPI and PPI came in below even the lowest estimates offered by any economists. No one seems to be considering the prospect of the U.S. getting mired in a deflationary economy, but all eyes will be on Powell next week to see if he drops rates. The BEST outcome for bears – – and mark my words on this – – would be if he DOES drop rates and, at the end of the day, the market still falls.
Ice Cold CPI
Equity bulls have been getting nothing but good news for over two months, and this morning was just icing on the cake, as the CPI came in vastly below expectations.
Deflated
The PPI numbers rolled out this morning, and in a massive divergence from expectations, not only is there no inflation, but the numbers were deeply negative. I suppose the mainstream media, which can spin any data into good news, will celebrate this, although last time I checked with Ben Bernanke, having persistent deflation enter into our economy would be really, really bad.
What a Long, Strange Trip It’s Been
Since Nixon Took USD Off the Gold Standard
The chart of SPX and gold shows that volatility was hard-wired into a macro market situation that had been relatively normal prior to August, 1971
I love looking at pictures. Pictures are how I form words, thoughts and stories.
This picture is a story of the time since the US removed the last bastion of soundness to its money, it’s funny munny that in its near-infinite ability to be printed at will (due to no hard asset backing) has funded all manner of societal and financial progress, as Keynesian policymakers no doubt hated dragging that heavy rock around, anchoring their lofty aspirations.
Since 1971 the stock market has been set free to create wealth as the economic funding mechanism became pure finance as opposed to sweat equity and productivity. Take a loan, build it… and they will come. Boy will they ever. Take another loan, and another, and another.
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