Postcards: What Isn't the Fed "Breaking?"
We keep hearing this argument that the Fed will eventually break something. Has anyone been paying attention to food, housing, energy, and education prices for the last 30 years?
Market update: We’re in a tricky period, with high selling pressure and many questions about the Fed’s rate policy. Insider buying remains low on a dollar-for-dollar buying/selling basis and on a Form 4 filing basis. That said, monetary inflation remains strong while the dollar is at a 34-year high against the Yen. Central banks continue to pour into gold and silver while investment funds keep Bitcoin and other hedges elevated. Investors should be skeptical today, however, about the Producer Price Index reading. The report showed a 3.6% drop in gasoline prices, ignoring seasonality. The truth is that gasoline prices increased by about 6% for the month. Tack on blatant manipulation in natural gas prices via public policy, and you have a nation still facing inflationary challenges.
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