There is no doubt that the American economy is slowing and that we may have some bumpy days ahead of us. Our consumer prices have posted their biggest gain in 1.5 years and yet our government and the Feds deny we all are being hit with inflation. Excluding food and energy (DUH!) the core inflation rate today was posted at .3% I have always said, believe your own eyes rather than what we are being told in the daily news. What do you see going on around you?
I’ll just take my recent, weekly shopping trip to Aldi, the so-called discount grocer of all time, as an example. It’s so ingrained into my brain that Aldi offers the lowest prices on food, that I almost automatically believe them. But a recent shopping spree told me a different story. I like to buy re-fill foods before I run out of them. Not after. By doing so, I was able to compare my current shopping trip to my last shopping trip.
Here’s what I uncovered:
The stock market hit an all time high yesterday, rising above 27,000 for the first time ever (click here). This rise was based on the presumption that The Feds are going to lower the interest rates by at least .25% at the end of July at The Feds next meeting. This cause will effect people’s borrowing powers, IMHO, not a good place to be. Just because our government is deep in debt, doesn’t mean that We The People have to do the same. Cheap borrowing powers can get all of us into deep trouble as the economy continues to slow.
These facts reveal an uncomfortable truth: Cheap money has not resulted in sustained new growth, but it has produced an unprecedented explosion in debt. And the Fed’s solution is now to offer more cheap money by cutting rates again.
Anyway, that was yesterday’s news (click here) Today, barely one day later, and the news emerging is a bit different. Apparently, inflation can’t be denied for much longer click here) Because of this rise in inflation pricing, doubt is being tossed about on whether The Feds really are going to lower interest rates at the end of this month.
To better understand what is actually going on AND how We The People can survive the upcoming onslaught of economic woes, take a good look at last nights’ NBR PBS July 11, 2019 episode. (which BTW, I think NBR is thee best economic recap of the daily news televised as of today!) Fast forward to the 10:38 time line and listen to the advice Bob Brusca, Chief Economist & Opinion Economics Maker gives the interviewer, when pressed as what people can do when facing higher inflationary coffee prices at Starbucks, Dunkin’ Donuts etc. Brusca states people can buy their own beans, grind them at home and drink a nice cup of coffee there. Really? Then what about the companies, such as Starbucks and Dunkin’ Donuts? What about their employees and distributors? What happens to them when no body shows up at their front doors to buy coffee or anything else for that matter? A complete collapse?