It’s Official: Reflation Is Here

The Epoch Times Header

For months and even years, the mainstream news has sought to spin terrible inflation news. It’s not so bad, it’s just transitional, it’s getting better, it’s not really a problem, and all your gloom about the value of the dollar is in your head. Truly, in the past fortnight, we have been inundated with articles suggesting that the public is dumb as rocks for thinking that inflation is still a problem.

This morning: boom! The upward trend for the entire first quarter was solidly confirmed. We could be entering a second wave. It was so bad that not even the two most influential venues could deny it. The New York Times reported, “Inflation Stronger Than Expected.” The Wall Street Journal reported, “Hot Inflation Report Weakens Case for Fed’s June Rate Cut.” The accompanying editorial is even better: “The Inflation Thief Rises Again.”

Truly, I’m stunned by the highly unusual and rather brazen truthfulness of these headlines. I don’t think we’ve seen that in three years. Which makes me wonder: Maybe the problem is even worse!

Here is a look at the inflation data as we see it now. The upward trajectory even from last summer is becoming apparent. The total loss of purchasing power in three years is easily 20 percent, but probably closer to 30 percent or more.

And that’s just from the official data, which is highly manipulated by messing up the pricing of housing and health insurance while excluding the cost of borrowing entirely. Adding those easily gets us back to double digits and perhaps exceeding what we experienced in 1979–1980, especially once you consider the sheer longevity of this mess.

In the 1970s, the devastation occurred in three distinct waves. Each time the trend improved, elites declared victory and the Federal Reserve moved in with rate cuts, thereby causing yet another round. Absolutely no one in charge anticipated the next wave. It came anyway.

Are we about to repeat this pattern?

It’s extremely spooky that the Fed has been angling for a rate cut for the past six months, just waiting for the chance. It’s bizarre. The whole idea of cutting rates comes from the notion of “countercyclical monetary policy.” You do it to stop a recession or dig out of one when it is happening.

Why would they talk about cutting rates now? Officially, we are doing well, in an upswing. To be sure, I don’t believe a word of it. The jobs data is a joke, and so is the output data. This is not recovery. It is possible to reconstruct the numbers in a way to show that we never left the recession of March 2020 and never recovered from lockdowns.

By Jeffrey A. Tucker

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

DOGE and Musk Recover Deleted Computer Files

Elon Musk and his “Geek Squad” discovered an entire terabyte of data was deleted from government servers from the office of the “Institute of Peace”.

A Simple Question

What is a woman? Anyone with an IQ above room temperature can answer the question. Everyone, that is, except Democrats.

Democrats Tesla Takedown is a Proven Astro Turf Movement

Elon Musk and other journalistic leaders like Joe Rogan have been asking the critical question, “Who is behind the organization of these Tesla protests?”

Can Ramaphosa and Trump Come to Terms?

Whether South Africa can quell the hostility emanating from Washington, without compromising on its national priorities, is a formidable test for a country

Maddened Europe

Viable prospects for peaceful settlement of conflict between Moscow and Kyiv exist, but Europe obsesses over threat of incursion onto European territory.

News

Trump Admin Ordered to Restore Legal Aid for Unaccompanied Minors

Judge in CA ordered Trump admin to restore funding for nonprofits providing legal services to unaccompanied illegal immigrant children who entered US.

How Trump’s ‘Liberation Day’ Tariffs Are Set to Reshape Global Trade

President Donald Trump is set to announce reciprocal tariffs for all nations starting April 2, the date he has dubbed “Liberation Day.”

4 Takeaways From April 1 Elections in Florida, Wisconsin

Voters in FL and WI went to the polls to decide races that could significantly impact the composition of the U.S. House of Reps and the Trump agenda.

Crawford Defeats Musk-Backed Rival to Preserve Liberal Majority on Wisconsin Supreme Court

Judge Susan Crawford, backed by in-state Democrats and supported by millions in out-of-state donations, won most expensive Supreme Court seat in state history.

Victory! Federal Court Orders Parental Notice Laws Restored to Protect Minors Seeking Abortion, in a case almost 40 years in the making.

Teaming up with public officials, the Bopp Law Firm and Nevada Right to Life, PJI took a stand in federal court to restore protections for young girls, the preborn and parents.

Trump Says Agency Heads Will Work With DOGE After Elon Musk Leaves

President Donald Trump said adviser Elon Musk will eventually have to depart from the DOGE and go back to running his companies.

FTC Chairman Raises Concerns Over Sale of 23andMe DNA Data

FTC said it was worried about the safety of the personal data of Americans who were previously customers of genetic testing company 23andMe.

Judge Dismisses COVID Lawsuit Against Former New York Gov. Cuomo

Judge dismissed class-action lawsuit against former Gov. Andrew Cuomo that blamed his admin for COVID-19 deaths in nursing homes across NY.
spot_img

Related Articles

Popular Categories

MAGA Business Central