{"id":58330,"date":"2021-06-20T10:04:30","date_gmt":"2021-06-20T15:04:30","guid":{"rendered":"https:\/\/olduvai.ca\/?p=58330"},"modified":"2021-06-20T10:04:30","modified_gmt":"2021-06-20T15:04:30","slug":"how-to-buffer-the-fallout-from-americas-third-world-death-spiral","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=58330","title":{"rendered":"How to Buffer the Fallout from America\u2019s Third World Death Spiral"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"https:\/\/economicprism.com\/how-to-buffer-the-fallout-from-americas-third-world-death-spiral\/\">How to Buffer the Fallout from America\u2019s Third World Death Spiral<\/a><\/h3>\n<div class=\"entry-content\">\n<p><em><a href=\"https:\/\/economicprism.com\/how-to-buffer-the-fallout-from-americas-third-world-death-spiral\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-1829 size-full\" title=\"How to Buffer the Fallout from America's Third World Death Spiral\" src=\"https:\/\/economicprism.com\/wp-content\/uploads\/2012\/08\/Graffiti.jpg\" alt=\"\" width=\"150\" height=\"150\" \/><\/a>\u201cWhat the hell?!\u201d<\/em>\u00a0\u2013 President Joe Biden, June 16, 2021<\/p>\n<p><strong>Out of Control<\/strong><\/p>\n<p>American workers are trying to make their way in an economy that\u2019s rigged against them.\u00a0 We made this\u00a0<a href=\"https:\/\/economicprism.com\/the-burden-of-the-american-worker\/\">claim<\/a>\u00a0many years ago. \u00a0Today, for fun and for free, we revisit this assertion\u2026starting with the latest from those doing the rigging.<\/p>\n<p>This week, after a two day meeting, the Federal Open Market Committee (FOMC) released their statement.\u00a0 Nothing material changed.\u00a0 The Fed will continue to hold the federal funds rate near zero.\u00a0 The Fed will also continue to create at least $120 billion per month from thin air to buy Treasuries and mortgage-backed securities.<\/p>\n<p>Bond yields spiked and the price of gold dropped because 13 Fed officials now\u00a0<a href=\"https:\/\/www.forexlive.com\/centralbank\/!\/the-feds-central-tendencies-and-dot-plot-for-the-june-2021-meeting-20210616\">plot dots<\/a>\u00a0that project two hikes to the federal funds rate in 2023.\u00a0 Fed Chair Jay Powell also mentioned the Fed is \u201ctalking about talking about\u201d bond tapering.\u00a0 These technocrats likely know \u2013 though they won\u2019t admit \u2013 they\u2019ve already lost control.<\/p>\n<p>Consumer price inflation is \u2018officially\u2019 rising at a 5 percent annualized rate.\u00a0 However, the\u00a0<a href=\"http:\/\/www.shadowstats.com\/alternate_data\/inflation-charts\">\u2018unofficial\u2019<\/a>\u00a0rate of consumer price inflation, as calculated using methodologies in place in 1980, is about 13 percent.<span id=\"more-7615\"><\/span>\u00a0 This rate of inflation is remarkably destructive to household budgets.<\/p>\n<p>\u2018Talking about talking about\u2019 tapering and telegraphing federal funds rate increases some two years from now will do little to contain consumer price inflation.\u00a0 The fact is, it has already veered out of control.\u00a0 We expect gas prices to top $5 per gallon in California this summer.\u00a0 Many Americans are not prepared for sustained, unrelenting price inflation.<\/p>\n<p>Here\u2019s the hard, back of the napkin math they are facing\u2026<\/p>\n<p><strong>Sour Grapes<\/strong><\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>How to Buffer the Fallout from America\u2019s Third World Death Spiral \u201cWhat the hell?!\u201d\u00a0\u2013 President Joe Biden, June 16, 2021 Out of Control American workers are trying to make their way in an economy that\u2019s rigged against them.\u00a0 We made this\u00a0claim\u00a0many years ago. \u00a0Today, for fun and for free, we revisit this assertion\u2026starting with the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1055,172,12043,303,16888,11763,13351,827,3650],"class_list":["post-58330","post","type-post","status-publish","format-standard","hentry","category-economics","tag-consumer-price-index","tag-cpi","tag-economic-prism","tag-fed","tag-jerome-powell","tag-mn-gordon","tag-price-inflation","tag-united-states","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58330","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=58330"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58330\/revisions"}],"predecessor-version":[{"id":58331,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/58330\/revisions\/58331"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=58330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=58330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=58330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}