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“By failing to prepare, you are preparing to fail.”
– Benjamin Franklin
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Steven Mnuchin: Former Goldman partner, friend of George Soros and Skull & Bones member .
Treasury Secretary Steven Mnuchin has a degree from one of the most prestigious universities in the world (Harvard grads may dispute this); He was the CIO of Goldman Sachs; He launched a successful hedge fund; He is now Treasury Secretary. Yet he appears to barely grasp basic economic concepts (not to mention his apparent fondness for fake math).
Last night, Mnuchin transparently tried to sooth markets by telling a crowd of reporters who accompanied him to the US Mint in Philadelphia that investors shouldn’t worry about rising inflation and Treasury yields – even with the 10-year yield so close to crossing into the “danger zone” above 3%.
Quoted by Bloomberg, Mnuchin swatted away the suggestion that investors are worried about rising prices, even as the average hourly wage number for January soared the most since 2009, triggering this month’s “volocaust”. Why? Because in Mnuchin’s mind, wage inflation and rising consumer prices have only a tenuous link – if that.
“There are a lot of ways to have the economy grow,” Mnuchin said in an interview aboard a train to Philadelphia on Thursday, where he toured the U.S. Mint. “You can have wage inflation and not necessarily have inflation concerns in general.”
If that’s true – it’s certainly news to us. And judging by the tone of these dismayed Jeffrey Gundlach tweets, we’re not alone.
Over the span of 2000-2016, the amount of money spent on food by the average American household increased from $5,158 to $7,203, which is a 39.6% increase in spending..
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Irlmaier predicted in around 1950 the migrant influx, followed by high inflation, then hyperinflation and much worse coming…
From Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners
Stop worrying about the US yield curve – its a distortion. Something much worse is around the corner….
The squeeze on households intensified last month as the cost of living increased at the steepest rate since April 2012.
Inflation rose to 3% in September, its highest level in more than five years, the Office for National Statistics (ONS) said.
The Consumer Prices Index (CPI) measure of inflation rose from 2.9% in August thanks partly to higher food prices – adding to the squeeze on households as pay growth lags behind.