Joe Lange:
July 28, 2023
Spit Ball
A huge development.
Inflation.
Everyone is celebrating that the inflation number, minus food and gas is down slightly from expectations. What are “expectations?” Just their best guess. It came in at 4.1 instead of the expected 4.2 so the assumption is it’s going down. Really? Prices are 4.1 percent higher than this time last year and that’s a good thing? Prices are not dropping. They’re still rising but here’s what’s being missed in all this euphoria. The market mouthpieces think the Fed is done hiking rates. Not even close.
Food and gas was not included. Why? They always leave out the two things consumers depend on most because inflation would be double digits otherwise.
I made a prediction a long time ago that August would kick off the market and economic collapse on Biden’s watch.
This inflation number today just made me even more confident in that prediction. My reasoning was focused around the BRICS nations announcement of a new gold backed currency coming in August but now there’s more. This inflation number is what I like to call “fools gold.” This inflation number is from June when the gas prices were low because Biden was draining the reserves. Gas was around $60 at that time. That’s over. Oil is around $84 now and soon will be $90. Gas prices effect everything in the economy.
Guess what’s coming in August? A big jump in inflation because it will reflect the quick rise in gasoline prices through July. Do you know what the market hates? Shocks. The market thinks inflation is tamed and many think we are going to avoid a recession. Fools gold.
The real estate market is already in recession and it’s a huge part of the economy. Spiking oil prices are what helped trigger the last housing bubble burst and credit crisis. It will do exactly the same thing this time. Consumers are maxed out and cutting back. Gas prices are about to force them to cut back even further.
Companies margins are thin with continuing rising wages. We are at $3.50 for gas in Texas. That’s high for us but gonna go higher. That effects the price of all goods and services.
The market is going to be shocked into reality in August by a spike in inflation and another Fed hike. All while the dollar dump accelerates because of a new currency backed by gold to compete with it.
Come October, which is historically a month of crashes, I don’t think anybody will doubt we are in a recession. Hard landing incoming.
July 29, 2023
It’s a good story. As we know, Putin is the good guy in this war regardless of what clowns like Hannity think.
