‘Fed policies absolutely don’t add to inequality.’ — Jerome Powell, Chair of the Federal Reserve Bank
Fed chief mucky muck Jerome Powell is looking more and more like Pinocchio every passing week. His pitch is that serious signs of inflation are only “transient” and that the Fed is not a partner in plutocratic looting operations and wealth transfers. We beg to differ.
First quarter earnings season is a week old, but the biggest theme management teams are talking about is clear — higher costs.
Morgan Stanley strategist Mike Wilson writes, “Early in earnings season, cost pressures have emerged as a prominent topic of conversation,” and “this development is corroborated by a number of macro data points which suggest that a range of expenses are on the rise.”
On Monday morning, Coca-Cola (KO) served as the week’s first Blue Chip company to report its quarterly results. The impact higher costs could have on the business were a notable part of the conference call conversation.
“Coke is grappling with the commodity inflation pressures,” CFO John Murphy said.
Procter & Gamble, the huge CONSUMER products company ($75 billion in annual sales) also now planning to raise prices in September. That’s 6 months from now. But all these price increase announcements will be “transitory”? Fed: How does this help the poor? https://t.co/eBs4oCosSp
— fred hickey (@htsfhickey) April 20, 2021
Trucker wages are rising sharply: It’s “the tightest driver market we have seen in our nearly three decades of being involved in the trucking sector,” one report states. “Industry executives say enhanced unemployment benefits and stimulus checks have curbed driver availability.”
Sonic in Albuquerque says “No one wants to work anymore.” pic.twitter.com/CR128n60mM
— Patrick Hayes (@KOBPatrickHayes) April 14, 2021
April University of Michigan Sentiment one-year inflation expectation up to 3.7% versus 3.1% prior (highest since 2012). This is understated but, by itself, suggests that $120 billion a month in Fed balance sheet expansion and zero interest rates is excessively and negligently accommodative and in total la-la land.
Lumber prices are in a massive parabolic move and product is in short supply. Grain prices are surging and now there is intensifying volcanic activity that threatens to amplify Grand Solar Minimum cold in the approaching growing season.
Commodity prices over last year: lumber +265%; WTI crude +210%; gasoline +182%; Brent crude +163%; heating oil +107%; corn: +84%; copper +83%; soybeans +72%; silver +65%; sugar +59%; cotton +54%; platinum +52%; natural gas +43%; palladium +32%; wheat +19%; coffee +13%; gold +3%.
Meanwhile, another Fed mucky muck suggests that “some tapering” of the $120 billion monthly Fed largesse and zero interest rates can occur when the U.S. population is 75% vaccinated. Half of the U.S. is vaccinated now, reports claim. So sadly, that’s not far away, perhaps mid-June as the foils continue to line up in droves.
Incidentally my formerly quite healthy and robust younger brother, 67, had what appears to be a stroke or mini-stroke days after his second Pfizer vaccine. How many unreported incidents like this are there? And what are the delayed impacts? Excerpt from my other “Bro Bean’s” e mail- who tried his best to talk him out of the jabs:
He and (wife) were all ready to get “my vaccine” as he called it. I told him the straight facts about mRNA experimental vaccines and the dangers but he felt the need for whatever reason to risk taking it. I told him to look at the VAERS data before jumping overboard. Also told him he was being used as a test subject in big pharma’s grand schemes. Of course they didn’t listen.
Received text from him that he has been under going countless tests for possible stroke he had at work after his second vaccine. Totally blanked out any meaning of words or concepts he was reading while doing software programming. He said he submitted a short summary to VAERS and the doctors are at a loss to figure out what happened to him but tests ongoing
Projections for hitting the 75% level are for early June, less than two months away. However, I suggest that the Crime Syndicate’s final solution for the 40% of the population who will likely refuse the “vaccine” will be to mandate that people take it or severely curtail freedoms beyond what they do now in the Scamdemic.
Another claim of Zimbabwe Jerome is that excessive money printing does not contribute to massive wealth disparity or favor plutocrats. Here is the reality of where the rubber meets the road.
At the global level, the planet’s 2,365 billionaires have seen their wealth increase $4 trillion, or 54 percent, during the pandemic year. Their combined wealth rose from $8.04 trillion to $12.39 trillion between March 18, 2020 and March 18, 2021. All while smaller business is shuttered and closing for good. If it smells like a loot, walks like a loot, looks like a loot, it probably is a loot.
While the economy collapsed in 2020, CEO pay surged
Massive debt expansion was supposed to be a temporary buffer — more than $1 trillion of debt was taken on by U.S. companies last year to ride out the economic devastation caused by Covid-1984.
But with interest rates still near all-time lows, it’s becoming increasingly tempting for corporations, including Home Depot and Verizon Communications, to spend those cash cushions on acquisitions, stock buybacks and dividend hikes. Much of this, according to the WSJ, is flowing into junk and zombie corporations and governments.
It’s never been cheaper for the most financially fragile companies to borrow money. Yields on triple-C bonds have fallen to a record low 8%, with investors mostly shrugging off the risk of default.