Remember 2007 when the Fed raised interest rates 17 times and tanked the housing market? That's what is happening right now...
"A surprise slowdown in U.S. inflation so far this year is tightening monetary conditions a lot faster than Federal Reserve officials wanted."
Quite the exact opposite is in fact happening: Tightening monetary conditions are causing a "surprise" slowdown in U.S. inflation. Duh.
Inflation data released Wednesday showed the “core” inflation rate, a closely watched measure of the underlying inflation trend that excludes volatile food and energy components, softened to 1.7 percent in May"
Because everyone knows that the key to higher inflation is to tighten monetary conditions.
Holy fuck, these people are dumb:
The Fed has based their entire interest rate model upon the wholly fabricated unemployment rate, which removes the long-term unemployed from the statistic. In this fake recovery, higher paid workers have been swapped out with a glut of low paying McJobs.
Here we see the U.S. real GDP minus potential GDP (blue) line with the Federal deficit. Potential GDP comes via the Congressional Budget Office:
"Real potential GDP is the CBO’s estimate of the output the economy would produce with a high rate of use of its capital and labor resources."
Today's leading sectors were recession stocks - consumer staples and Utilities, led by Johnson & Johnson:
This recession stock rotation won't last long...
Because Treasury bonds are now outperforming recession stocks:
Shocking but true, Oil broke the latest support level today on heavy volume...
And Social Mood is imploding...
Bitcoin:
Nasdaq 100
But as long as the Dow made a new record high with the all out assistance of the Fed levitating recession stocks, that's all that matters...
Because nothing matters, until it collapses...
Stevie Wonder is now doing technical analysis...
