Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Biden’s Alternate Inflation Universe

Economics / Inflation Jun 02, 2021 - 11:16 AM GMT

By: Gary_Tanashian

Economics

As Biden Speaks, remember the economy is run by the Fed and it is run by inflation

Of course, a career politician will be adept at framing the narrative just right, adding to it, tweaking it and layering on fancy words and concepts in order to veil the true and unbelievably simple fact that the inflation started under a very different presidential administration and continues to this day. The only difference is that the party that won the election gets to take a bow for the broad results that have little or nothing to do with them.

Biden goes on offensive against economic critics, argues rising wages show his agenda is working

Well, his agenda was to push rising employment costs into the economy with the inflation the Fed created out of thin air. So that is true. I am not against raising minimum wages under this vile inflationary system because low income people cannot keep up with the pace of the inflation the Fed has created. Under an inflationary regime, an inflationary (Keynesian) system, you can’t go with the old conservative method of letting each earn his or her way based on merit. At some point – due to inflation – the goalpost has been moved too far away.


Trump was so 2020, and that book is closed for now. What Biden is doing is taking the (funny) munny printed out of thin air by the Federal Reserve, and feeding it into favored areas of the economy, much of it as agenda-driven (some of it radical) pork. Trump was pushing the pork too, but much of that went to the already hefty pigs in corporate board rooms. It’s just a matter of realigning where the pork is going, but in the American system we have now, regardless of party affiliation, it’s all about the pork, baby. “It’s inflation all the way, baby!” (from the late Jonathan Auerbach).

And it is all born of desperation. Take a step back in time with me if you will, to March of 2020. Casino patrons were terrified and puking up stock holdings. The economy was being shut down and in a system that had already been driven to sublime levels of debt under Trump (merely continuing a tradition, regardless of party) all that debt must not be allowed to unwind or else there would be no society left. Nothing other than discord, violence and well, some scary shit that 2020 only hinted at.

There are people who think that the liberals – a global liberal elite cabal – manufactured the Coronavirus…

…to eliminate Trump and resume control over whoever is left after the vaccines depopulate a majority of the world’s human residents. Ha ha ha, but seriously, if it were a creation it was designed to trigger the next inflationary episode because after all, as we documented back in 2019…

…the yield curve had bottomed, the Trump reflation was starting to decelerate and well, if I were to wear a tin foil hat in the belief that COVID-19 was man made for some reason, that would be my guess. Inflationary operations like the one we’ve been riding for the last year need a trigger because the Fed operates in the shadows and needs to be invited to the party or in this case begged to come in.

For what it’s worth, I don’t think COVID-19 was willfully created, but work with me here. The salient point is that the Fed needs economic fear, decelerating prices and at least a strong whiff of deflation in order to work its inflationary magic.

The Fed is a vampire that sucks the economy’s life blood little by little over decades. But it operates in the dark of night and most effectively when under cover of deflation.

Reference from 2019:

So just as Trump’s bullshit was tuned out for proper market management, so too will be Biden’s. They are politicians, after all. They have favored beneficiaries and customized messages to the people. Trump’s beneficial choices pissed off many. Biden’s are now pissing off many. But it’s all one system with different figureheads placed on top as mouthpieces.

The economy is run by the Fed and it is run by inflation.

For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed interim market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar. Follow via Twitter ;@NFTRHgt.

By Gary Tanashian

http://biiwii.com

© 2021 Copyright  Gary Tanashian - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Gary Tanashian Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in