{"id":59405,"date":"2021-09-20T15:54:05","date_gmt":"2021-09-20T20:54:05","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59405"},"modified":"2021-09-20T15:54:05","modified_gmt":"2021-09-20T20:54:05","slug":"the-inflation-train-isnt-anywhere-near-full-speed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59405","title":{"rendered":"The Inflation Train Isn\u2019t Anywhere Near Full Speed"},"content":{"rendered":"
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The Inflation Train Isn\u2019t Anywhere Near Full Speed<\/a><\/h3>\n<\/div>\n
\n
\"The<\/p>\n
Public domain photo from\u00a0National Park Service<\/a><\/span><\/div>\n<\/div>\n

Federal Reserve Chairman Powell and other members of the Fed have been using the term \u201ctransitory\u201d to downplay the threat that\u00a0the last 16 months of skyrocketing inflation<\/a>\u00a0would last.<\/p>\n

But inflation has been sharply on the rise since March 2020, with only a minor pause toward the end of last year before rising even\u00a0more<\/em>\u00a0sharply since January 2021. Two Fed officials dissented in June of this year, but Powell\u2019s money-printing habit hasn\u2019t slowed.<\/p>\n

The \u201clight at the end of the tunnel\u201d for the Fed? A miniscule\u00a0.1%<\/strong>\u00a0(one tenth of one percent) down tick in the\u00a0official monthly inflation report<\/a>\u00a0this August.<\/p>\n

You can almost hear the relief in the Fed\u2019s chatter\u2026 \u201cSee, we were right! It was only transitory inflation, and it\u2019s already going down! There\u2019s nothing to see here, move along, buy more stocks.\u201d<\/p>\n

Don\u2019t crack open the champagne just yet.<\/p>\n

Unfortunately for us, the Fed\u2019s optimism seems misplaced. That 0.1% reduction in monthly official inflation leaves us with a\u00a05.3% annual inflation rate<\/strong>, more than\u00a02 1\/2 times higher<\/em>\u00a0than the Fed\u2019s official inflation target.<\/p>\n

And if you think everyday folks have it rough,\u00a0small businesses have taken a major hit<\/a>:<\/p>\n

Inflation for businesses reached a year-over-year rate of 8.3% \u2014 the metric\u2019s\u00a0highest level since at least 2010<\/strong>.<\/p><\/blockquote>\n

On top of that, consumers are waking up to the reality that inflation won\u2019t be \u201ctransitory,\u201d but instead will likely stick around for a few years.<\/p>\n

That\u2019s because once inflation begins to gain velocity, it\u2019s hard to stop. Inflation has serious momentum, just like a train. A fully-loaded modern freight train weighs tens of thousands of tons and needs over a mile to make an\u00a0emergency stop<\/em>. A controlled, safe stop takes much longer.<\/p>\n

That very momentum is what\u00a0Jim Rickards was concerned about back in February<\/a>:<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Inflation Train Isn\u2019t Anywhere Near Full Speed Public domain photo from\u00a0National Park Service Federal Reserve Chairman Powell and other members of the Fed have been using the term \u201ctransitory\u201d to downplay the threat that\u00a0the last 16 months of skyrocketing inflation\u00a0would last. But inflation has been sharply on the rise since March 2020, with only […]<\/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":[18769,303,426,1013,534,538,3650],"class_list":["post-59405","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-fed","tag-inflation","tag-jim-rickards","tag-monetary-policy","tag-money-printing","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59405","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=59405"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59405\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}