Shawty is a 9.1 baddie!
No simping guys, you know what to when you spot the 9.1 baddie/hottie strutting down the street but in this case, when we saw the reported inflation data on Wednesday, she did not look pretty and we were nervous to approach.
To be clear, there is a huge difference between reported inflation and actual inflation.
The reported US Consumer Price Index (CPI), which measures the price of an average basket of goods, ruptured through the 8.8% consensus forecast and came in at 9.1%. The Core CPI (minus food and gas) came in at 5.91%. It’s the worst rate of inflation in over 40 years!
Even rapper 50 cent has to adjust for inflation:
In other words, goods are getting really expensive for the average consumer! The chart below by the FED’s economic data highlights the change.
Source: FRED
Now that inflation has come in worse than forecasted, the expectations of the Federal Reserve (Fed) to raise rates during the July 27th FOMC meeting have, in turn, increased from 75 to 100 basis points. As a result, there is a 78% probability of a 100 bp hike. The current rate sits at 150-175 bp.
Source: CME group
The inflation is not limited to the US dollar. Global inflation rates are elevated throughout the globe noted a Tweet by Charlie Bilello.
With these latest numbers, it is evident the FED will continue to wage war on inflation at the expense of markets. With the increase in interest rates, it becomes harder and harder to borrow money. That, in turn, translates into slower economic growth. And when does it all stop? Not until the FED breaks demand and inflation begins to show signs of decreasing.
A recession might be the final nail.
With little to no solutions coming from the leadership class, we appear to be in deficit of competent leaders that possess majority mandates.
Boris Johnson that had a majority mandate resigned last week and days later, former Japanese Prime Minister Shinzo Abe was assassinated. A few days passed and both the President and Prime Minister of Sri Lanka, resigned and fled the country. Then yesterday, with their ruling governments in a state of turmoil, Estonian Prime Minister Kaja Kallas and Italian Prime Minister Mario Draghi have both tendered their resignations. Lets see who is next to fall..
Not saying they are all connected but the timing is iffy and it definitely emanates from the economic fallout of the draconian scamdemic policies.
This just confirms that the legitimacy of the governing class is slipping; some might say, they have completely ‘lost’ their legitimacy altogether!
Parliamentary coalitions are fracturing as new alliances are drummed up. A recent example of this happened in the EU where the far-right and far-left in the French parliament joined forces to defeat the loose coalition government of Emmanuel Macron as he tried, and failed, to extend emergency covid rules.
“It was the first bill in the new legislature, and the Assemblée Nationale has already embarrassed the government. On Tuesday night, the Assemblée rejected one of the key articles in the bill on Covid-19 aimed at extending certain measures for the fight against the pandemic.
During the debate, the coalition backing President Emmanuel Macron was outvoted several times by parts of the left-wing Nouvelle Union Populaire, Ecologique et Sociale (NUPES), the right-wing Les Républicains (LR) and the far-right Rassemblement National (RN). But the government, represented by Health Minister François Braun, adopted what was left of the bill at 1:45 am, which the help LR votes and Socialist abstentions.”
Leaders like Joe Biden (US), Justin Trudeau (Canada), Emmanuel Macron (France), Boris Johnson (UK), Jacinda Ardern (New Zealand) and co. have implemented Build Back Better policies with a flurry of dictates, unilateral fiats, rules, regulations and unconstitutional mandates, while going around wailing to others about “democracy” and “rules based international order”. It is all the more glaring that they are frauds and puppets that are willing to sacrifice their people. All this adds up to the destruction of government legitimacy as they pretend to represent “western democracy” even as they push to extend the two years of totalitarian power given to them.
Establishment mouthpiece AP tried to spin it:
[…] “A poll conducted last year by The Associated Press-NORC Center for Public Affairs Research found that just 16% of Americans say democracy is working well or extremely well. Another 38% said it’s working only somewhat well.
Other surveys reveal how many people in the United States now doubt the media, politicians, science and even each other.
The distrust has gone so deep that even groups that seem ideologically aligned are questioning each others’ motives and intentions.”
The Inflation pressure is building up like a pressure cooker. People are growing increasingly desperate and irate, with the uncertainty of food security likely to exacerbate it.
My cynical mind not reassured by the resignations and fracturing of governments makes me rest uneasy though.
As what I identify from the patterns and recent history is that the elites seem to be reshuffling the same cards and the next one they pull out is likely to be more or less the same or even worse.
We cannot forget that BoJo hatched into his position after a “tectonic” shift–Brexit vote. And the globalists/financial elite knew what to do with that mandate–replace a broken pot with another with more wax covering the crack. All these head of states stepping down may be a very early sign of something coming, but not sure if that something is better or worse yet. It may still get worse.
It may all be hopium–expecting a compromised political process to yield changes antithetical to its existence.
If change will come, it will have to come from outside this rotten system. How that happens is beyond my comprehension.
Maybe we have to consult folks from another century.
See you next week!
- Ope