Inflation Wasn't Killed

"It involves our most sacred, high functioning deep state institution... I'm thinking of the runaway, nontransitory inflation that's happening this country and the complete bankruptcy of the Fed." - Peter Thiel, 2021

Inflation hit like a truck in 2021

After record levels of money printing during 2020

And was denied for over a year

Until interest rates went up somewhat

But nowhere close to what it took to stamp out the nontransitory inflation of the 1970s

After years of denial, it's now fashionable to take victory laps on inflation

JUST IN: 🇺🇸 President Biden says "we have the lowest inflation rates of any country in America." pic.twitter.com/d7dvB5Plos
— Watcher.Guru (@WatcherGuru) March 14, 2024

But... below is increasingly growing evidence that suggests inflation wasn't killed

We show that if we make an effort to reconstruct the CPI of Okun’s era—which would have had inflation peak last year around 18%, we are able to explain 70% of the gap in consumer sentiment we saw last year. 8/N pic.twitter.com/ZuXcck68LK
— Lawrence H. Summers (@LHSummers) February 27, 2024

Thought inflation was gone?

WOW. On a 3-month annualized basis, Supercore inflation jumped a whopping 6.9% in February.

Core services less shelter inflation is a key metric that the Fed follows, also known as Supercore inflation.

In January, this metric jumped by 0.7%… pic.twitter.com/FS8Ev3ktRA
— The Kobeissi Letter (@KobeissiLetter) March 12, 2024

At least 23.98% of your wealth has been invisibly seized by the government since Jan 2020. https://t.co/s97GLpvV0X pic.twitter.com/BjIji6Iuwt
— Balaji (@balajis) March 16, 2024

Trade interest for "no rate cuts in 2024" has skyrocketed:

Since January 1st, trade interest for no cuts in 2024 has risen by a whopping 140%, according to Zerohedge.

As we kicked off 2024, markets were beginning to price-in a case with EIGHT rate cuts in 2024.

Rate cut… pic.twitter.com/jeIOTJAruQ
— The Kobeissi Letter (@KobeissiLetter) March 21, 2024