Federal Reserve Bank Chairman Jerome Powell and his junk pseudo-economics posse used the cover of Covid-1984 to facilitate — via massive money printing — the transfer of trillions of dollars into the hands of Crime Syndicate plutocrats. At the same time, he has allowed the buildup of an enormous financial bubble that’s totally dependent on malfeasant dovish activity from the posse.
Another Powell trick of the trade is to pretend to be blind to increasingly intense inflationary signs. Inflation too “soft”? The only thing soft about inflation is the way the BLS calculates it and what Powell does about it.
“You have faulty price measurements and policy makers linking their decisions to faulty price measurements,” says Joseph Carson, a former Alliance Bernstein and Commerce Dept. economist. The evidence of higher than BLS reported inflation is overwhelming.
This is all before the impact of a $1.9 trillion stimulus orgy. Thus, the population will learn what the Great Reset is really all about — namely, impoverishment in the form of a Weimar or Venezuelan inflationary inferno.
Inquiring minds would like to know: Where are the credit rating agencies in all this? It’s criminal to maintain a AAA rating on U.S – typically post-truth world behavior as government debt heads for the $30 trillion mark (125% GDP).
Meanwhile: Domestic steel prices have risen more than 160% since last August, lumber prices more than doubled, house prices are up 14% Y/Y, oil is at $64 a barrel, gasoline prices are up over 70% since November, and shipping costs are “skyrocketing.”
Food prices up by double digits, industrial inputs are up over 30%, tin is at a 10-year high, copper at a 9-year high (nearing a record), iron ore is up over 65%, rubber is up 40+%, Walmart is raising wages (again), there are $15 federal minimum wage proposals with multiple states implementing their own $15 level, and M2 +26%.
Propane costs are up 30%, and the worst semiconductor shortages ever are leading to across-the-board price hikes.
The S&P GSCI spot index, which tracks price movements for 24 raw materials, is up 17% this year.
According to a report from Bloomberg, hog, cattle and poultry raisers are struggling amidst the highest prices of corn and soybean that they have seen in seven years. The prices have driven up the costs of feeding animals by at least 30%.
Last June, the United Nations warned that the world is on the brink of a food crisis worse than any seen over the past 50 years. This is before accounting for the impacts of the developing Grand Solar Minimum cold sun.
Brazil, the top chicken exporter in the world, saw the cost of raising chickens go up by 39% last year due to pricier feed. Last month, costs rose again by 6%.
Consequently, meat producers have had little choice but to raise their prices in order to stay profitable.
Burry compared the current situation here in the United States to 1920’s German hyperinflation, quoting several passages from the great 1974 Ronald Marcks/Jens Parsson book “Dying of Money: Lessons of the Great German and American Inflations.”
And the similarities are striking, particularly in the period just prior to the highly destructive hyperinflationary episode.
Prosperity, much like ours now, belied a great divergence of economic outcomes for different socioeconomic classes.
“Side by side with the wealth were the pockets of poverty. Greater numbers of people remained on the outside of the easy money, looking in but not able to enter. The crime rate soared.
“Accounts of the time tell of a progressive demoralization which crept over the common people, compounded of their weariness with the breakneck pace, to no visible purpose, and their fears from watching their own precarious positions slip while others grew so conspicuously rich.
“Speculation alone, while adding nothing to Germany’s wealth, became one of its largest activities. The fever to join in turning a quick mark infected nearly all classes. Everyone from the elevator operator up was playing the market.”
Dr. Burry then added the reminder that this book was “written in 1974 re: 1914-1923.”
And for the coup de grace, he implied that the proper analog to the current market is that our future inflation has been gestating for an 11-year period from 2010 through 2021.
“We are in a blow-off top in all things,” Burry continued, referring to a chart pattern that shows a steep increase in asset prices and trading volume, followed by a rapid price decline.
“Markets have now bubbled over in a dangerous way,” he said in an earlier tweet. Burry hinted in yet another tweet that he expects a market crash.
Perhaps in a response to the standard kill the messenger psychotics Burry has since removed all of his tweets.