"I have no interest in owning bonds whatsoever."

"material money printing forever"

My top pick at the next Sohn Conference:

Come on, gang! Toughen up!!

We have a few off days and everyone freaks out.

Number Go Up

Under our system, the cost of living always goes up over time, and the models are designed to understate by how much.

The last time the Fed's PCE math model was at or below their made-up 2% "preferred target" was in April 2021, back when Joe Biden was President.

If the Fed believes higher rates slow inflation, which they do, why would they be considering rate cuts at this point? They've been above their goofy PCE target for over 3 years and are still a good measure above it. For most Americans cost of living is the #1 problem.

As Jim Bianco said:

“One of the things that Jay Powell said was - he said 2.6% or 2.7% core PCE is a good place. What???!! You said two!...wait a minute. That's kind of a big range there. That's what 2% to 2.7% on inflation is. That is a monstrous difference between those two numbers!”

"A society that narrows the meaning of ‘success’ to the big money and in its terms condemns failure as the chief vice, raising money to the plane of absolute value, will produce the sharp operator and the shady deal. Blessed are the cynical, for only they have what it takes to succeed."

C. Wright Mills, The Power Elite, 1956

Much more below the fold - more on the CPI and PCE models, Julian Brigden, Chris Macintosh, credit card craziness, consumer sentiment, home sales, Florida condos, Melody on “subprime” FHA loans, Toronto, Chris Whalen, Mike Taylor, Martin Armstrong, Horizon Kinetics, electricity, natural gas, private equity, creditor on creditor violence(!), commercial real estate, Armageddon(!), the Yen, labor law, Nokia, Dennis Kucinich, Altamont and more!

If you’re not a paid subscriber, that is your right, but please at least consider it. And if you are a paid subscriber, thank you for your service.