This wasn’t a good week for the “pivot” people and asset gatherers who have been begging the Federal Reserve for lower rates. We got a higher-than-expected CPI and PPI. Making things worse, the short-term monthly numbers have started to accelerate meaning the disinflation story might be dead for now. Retail sales and manufacturing numbers were … Read more
Introduction: We’ve noted in the past that many market participants are eagerly waiting for the “Fed pivot”; the time when they expect the Federal Reserve will reassure investors that it’s done raising rates and can get back to more of the fun zero-interest rate combined with trillions of dollars of quantitative easing. Of course that … Read more
As “expected” the Federal Reserve raised the fed funds rate by another 75 basis points (.75%) today. We put “expected” in quotation marks because when we started writing about inflation ten months ago, the big Wall Street firms thought we’d get a total of 75 basis points of rate hikes for all of 2022. We … Read more
Introduction: We’ve noted two related market trends over the past few months. The first is bad economic news is good for the market. That’s because the Fed is more likely to slow rate hikes into a weaker economy. Click the link for a more detailed description. The second is the market has been trading based … Read more
We have warned, and warned and warned that the design of the anti-Russian sanctions are impairing the value of the dollar as the world’s reserve currency. In particular, we have been concerned about the status of the petrodollar. The US made a deal with Saudi Arabia in the 1970s where in exchange for the US … Read more
Gary Brode, Founder of Deep Knowledge Investing, discusses “The Strategic and Economic Implications of Anti-Russian Sanctions,” as well as how U.S. policy is failing to protect the dollar’s reserve currency status and its effect on American consumers. This event took place on June 29, 2022 as a part of The Institute of World Politics’ lecture … Read more
