Feds Favorite Inflation Gauge Just Rose Again: The Economic Ninja

All right, hey, everybody, economic ninja here. I hope you are doing great. Got a great story at a CNBC. It’s entitled, the Fed’s favorite inflation gauge, rose. 2% in December and was up 2. 9% from a year ago. Crazy. Inflation is still not going down even though the Fed has raised rates super high. And now they’ve paused for a little bit and they’re trying to sprinkle a little bit of opium in front of everybody saying, we’re going to pencil in a few Fed rate drops.

I need some coffee. It’s still rising, which means the Fed can’t actually lower rates unless it’s political. All right, so let’s dive right into this story. This is out of CNBC. It says an important inflation gauge released Friday showed that the rate of price increases cooled as 2023 came to a close. The Commerce Department’s personal consumption expenditures price index for December, an important gauge for the Federal Reserve, increased 0.

2% on the month and was up 2. 9% on a yearly basis. Remember, everyone, the Fed’s primary mission or where they want to keep inflation because they want to destroy the purchasing power of your currency. They only want to destroy it at 2% per year. Isn’t that sweet? So at 2. 9%, that means they haven’t hit their objectives. They don’t want to just destroy your stuff overnight. They want to destroy it a little bit.

Just a little bit. Because they want it to be chronic. They want you to not realize what’s going on. Okay, for anybody that doesn’t understand how this works, please stick around this channel because I guarantee you I’m going to explain it in a totally different way. All right. And again, people that are trying or waiting or praying that the Fed lowers rates, they’re not going to do it.

They never do it during a good economy. Not saying this is good, but it’s perceived to be good because the government’s too busy lying to you. All right, hey, real quick, thank you to everybody that hit the subscribe button again because you are unsubscribed, because maybe YouTube doesn’t like me for saying this stuff, but hey, this is exciting stuff and you should be excited. Why? Because there are a lot of people out there smoking opium, and I guess that crap’s legal nowadays.

And this is the opportunity you’ve been waiting for. I’m out looking at real estate like crazy right now, watching companies. I’ll give an example. I’m just going to go tour. I should probably bring the camera. I’m going to go tour a toll brothers development. There’s a ton of them in an area I’m looking at, and they have immediate homes for sale right now that aren’t sold. They’re finished.

They have not sold them yet. They don’t have a deposit on them. They’ve got, some of them have got 14 homes in a development ready for immediate purchase. They’re hurting. And these are the things that the build up going into this big recession, which I believe, quite frankly, is going to be a mini depression. No joke. I want you to take advantage of it. I want you to become wealthy.

All right, so as we read this story about the Fed’s inflation gauge, and this is the key stuff, the two aspects that I’m talking about that will not go down. The Fed can’t drop rates or it will cause a mini hyperinflation. All right, so check this out. It says again, the personal expenditures price index for December, an important gauge for the Federal reserve, increased 0. 2% on the month and was up 2.

9% on a yearly basis, excluding food and energy. Why would we want to exclude food and energy? So think food and energy is what’s going up and nobody can live without that. We want energy. We want to be able to power our house, have some lights. We want to be able to heat our homes. We want to be able to eat and have food in our bellies. Okay.

They are saying with even those two things out, which all of us know, let me ask you this real quick. How many of you are type one? If you are seeing still increased food prices at the grocery store, I’m just curious. Not a lot of people have to deal with the massively high gas prices, like in California and certain other states. However, gas is still elevated compared to a handful of years ago.

Food is one of those things that everybody sees. And we’re starting to see more expensive foods be hurting whole foods and stores like know whole paycheck. I can’t get over how expensive that place is. You’re seeing a decrease in sales. They’re hurting because people have less money. They’re going to shop in other places. So here the Federal Reserve is watching interest rates or watching inflation, gauging if they can even lower rates.

But right now, you’ve got a situation where the inflation keeps ticking up and the food and energy, they’re just taking it out and everything else is still going up. It says economists surveyed by Dow Jones had been looking for respective increases of 0. 2% and 3%. So this is in line with what they were expecting. On a monthly basis, core inflation increased from 0. 1% in November, however, the annualized rate declined from 3.

2%. The twelve month rate is the lowest since March of 2021, but still, you can’t look at that because that was absolutely insane because of bottlenecks in the supply chain. Now it says, including volatile food and energy costs, headline inflation also rose 0. 2% for the month and held steady at 2. 6% annually. I do not believe that those are correct numbers. I believe that headline inflation rose more, and you’re going to see that come out later during a revision, okay? Like a month later.

The release adds to evidence that inflation, while still elevated, is continuing to make progress lower, possibly giving the Fed a green light to start cutting interest rates later this year. The central bank targets 2% as a healthy annual inflation rate. Markets took little notice of the data, with stock futures indicating only a slight change at the open and the treasury yields mostly lower. Inflation dynamics inside the metric that the Fed uses to formulate policies strongly imply that the central bank will hit its inflation target in the near term, said Joseph.

I can’t even pronounce that one. Chief economist at RSM this will create the conditions in which it makes policy pivot and begins a multi year campaign in which it reduces the policy rate towards a range between 2. 5% and 3%. The Fed’s benchmark overnight rate interest rate is currently targeted between five and a quarter and five and a half percent. I just want to remind you that just because the last 23 years the Federal Reserve has had low rates, it’s because we’ve been in an eternal collapse.

Ever since the. com bubble coupled with the great financial crisis, we are in serious trouble. So if people think that lowering rates is going to be a good thing, it’s only going to lead to more inflation. Unless the Fed breaks the backbone of you, the consumer, the employee, they want you fired. They know exactly what is going on. And it’s very important for people to understand this, because if you don’t understand it, then you can’t get ready for what’s coming.

And I don’t want you to get ready like a defeatist, somebody that’s going to go hide in a bunker. This is going to be your greatest opportunity to grow wealth. This is the time to start businesses. This is the time to do these things. Look, I hope you got something out of this. Thank you to everybody that hit the resubscribe button. It’s called subscribe, but they just took the d off now.

Thank you so much. You guys are awesome. I cannot wait for this year. I got to meet three of you in town the other day at different times of the day. I love meeting you. You are so full of life and so excited. I know you get it. It’s a little scary out there, but you also see the potential, and I love seeing the smiles. I love the comments.

You guys are awesome. The economic ninja is out. Bye. .

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