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Stocks See Worst Day in Years, Get Prepared for Hell
The Federal Reserve Banksters have rigged the game
As we would say in The Bronx, “Bullshit has its own sound.”
And the ongoing bullshit spewing out from The Street, which pushed equities higher over the past four sessions, was that inflation in the United Soviet States of America (U.S.S.A.) was on a downtrend and happy economic days are here again:
Stocks Rise Before Inflation Data S&P, Dow and Nasdaq Composite notch their fourth consecutive day of gains Stocks rose ahead of inflation data that are expected to show further cooling of consumer prices.
Stocks rose ahead of inflation data that are expected to show further cooling of consumer prices. - Wall Street Journal, 13 September 2022.
Or how about this from today’s Financial Times:
Consumers’ inflation and home price expectations ease US consumers’ economic outlook eased further in August as inflation and home price growth expectations declined, an improvement that is still unlikely to lead the US central bank to loosen monetary policy at its next meeting. Analysts polled by Reuters expect August’s consumer price index to register a reading of 8.1 percent year on year, down from 8.5 percent in July.
Thus, with the belief of lower inflation on the near horizon, equities kept moving higher as fear eased that the Bankster Bandits, i.e. U.S. Federal Reserve, would only raise interest rates .50 basis points rather than .75 basis points when they meet next week.
Instead, despite sharply falling gas prices which had economists surveyed by Dow Jones predicting a 0.1 percent decline for overall inflation and a rise of just 0.3 percent for core inflation... month over month, headline inflation rose 0.1 percent and core inflation rose 0.6 percent.
Costing more to live in an apartment or home, shelter costs went up 0.7 percent for the month.
The price for buying a new vehicle and receiving medical care both rose by 0.8 percent. Hitting Americans in their stomachs, the food at home index, which represents grocery prices, shot up 13.5 percent over the past year... the sharpest spike since 1979.
TRENDPOST: Year on year, overall inflation is up 8.3 percent... yet U.S. Fed interest rates are just 2.50 percent. And even with a 75 basis point rise, real interest rates, when taking inflation into account, will still be deep in negative territory. Thus, even with rates still relatively low, the artificially pumped up economies and equities will deeply dive without more cheap money.
Before today’s inflation data was released, Dragflation—rising inflation, declining economic growth—was hitting Wall Street and Main Street. And now, the worst is yet to come.
FactSet reported that analysts had lowered their third quarter growth projections by 5.5 percent... the sharpest cut since the second quarter of 2020, when the world’s dictators (aka politicians) locked down the plantation workers of Slavelandia to fight the COVID War and brought economic activity to a halt.
Bad to Worse
Totally absent in the mainstream business media inflation overview is how and why inflation keeps spiking.
Not a peep of the more than $14 trillion that Washington and the Federal Reserve pumped into the economy and the Wall Street Gang to artificially prop up the economy they killed when they launched the COVID War!
Not a word about the zero interest rate policy that artificially boosted the housing markets.
There’s also silence about the massive sanctions imposed on Russia by the United States and NATO and how their pumping scores of billions to ramp up the Ukraine War have sharply driven up a series of commodity prices that have hit consumer’s pocket books.
TREND FORECAST: Week after week, we have provided hard data which accurately illustrates the dire socioeconomic and political straits that lie ahead. The reality is front and center on Main Street and will be hitting Wall Street, driving all indexes deep into bear territory as the Federal Reserve keeps raising interest rates to bring down inflation... measures they should have imposed a year-and-a-half ago when inflation began to rise. (Subscribe to The Trends Journal to keep reading our exclusive content.)