Following UMich confidence’s biggest miss on record, the Conference Board misses expectations printing at its lowest since May 2013 as the last data was revsied higher.
Print On? Print Off?…::: Investors jostle ahead of Fed decision on stimulus
Markets took last minute positions on Wednesday ahead of what is expected to be the first tentative step by the U.S. Federal Reserve to wean the world off the super-easy money it has used to treat the last five years of financial turmoil.
And then comes inflation, as the truth spills out.
Printing money, does not an economy make.
“In terms of our hypothesis for next year’s (economic) forecast, I think we have assumed a very slight decline” in monthly purchases made by the Fed, IMF Managing Director Christine Lagarde told a news conference.
It’s not just inflation that is theft. It is painfully self-evident that our financial system doesn’t just enable theft, it is theft by nature and design. If you doubt this, please follow along.
Inflation is theft, but we accept inflation because we’ve been persuaded it benefits us. Here’s the basic story: our financial system creates new credit money (i.e. debt) in quantities that are only limited by the appetites of borrowers and the value of assets they buy with freshly borrowed money.
If this expansion of credit money exceeds the actual growth rate of the real economy, inflation results.Since our economy is ultimately based on expanding debt in every sector (government, corporations, households), inflation is a good thing because it enables borrowers to pay back old debt with cheaper money.
Wondering why the money world got its knickers in a twist last week? The answer is simple: the global economy is breaking apart and its constituent major players are doing face-plants on the downhill slope of a no-longer-cheap-oil way of life.