Hey, everybody, economic ninja here. I hope you’re doing well. You know what’s not doing well? Federal Reserve right now and the president of the United States. Why? Because they know what’s coming next. They understand that based off of what just happened, with the consumer price index rising more than expectedly, they know that they are in a rock, right between a rock and a hard place because they’ve been telling the american people that they’re going to lower rates.

I’m going to show you a couple things and then we are going to explain when they’re going to lower rates and why they’re going to lower rates. Because most of the american people are seriously confused because they are under the illusion, or what I would say the delusion of what the narrative is coming from the White House and the Federal Reserve. So I’m going to show you a couple of stories right here.

This news just came out. It’s really important to go over, we’re going to go over two different news articles on the same topic. And I’m going to show you the difference. This one out of CNBC, it’s entitled Consumer prices rose 0. 4% in February and 3. 2% a year ago. Now many people may think these are small numbers, especially when you consider the inflation that we had just merely a year ago.

But it’s a big deal because consumer price index actually shows you what’s coming for inflation in the future. Check this out. Says right here, inflation rose again in February, keeping the Federal Reserve on course to wait at least until the summer before starting to lower interest rates. Let me explain something. The Federal Reserve has only, all throughout history, lowered interest rates in two different scenarios. First, one, political reasons.

They have their top picks for president of the United States. So they deal with inflation and their rates, whether it’s been going up or low. And their comments about how strong or weak the economy is based on the president, they want. I want you to understand that that has happened four times since 1972. The other time they lower rates is when everything is in utter free fall. Think about it.

The banks like taking money from you, so why would they give you a lot of interest? Okay, so what happens when the economy goes down? The Federal Reserve drops rates significantly. When the stock market’s in freefall, the housing market’s in freefall, things aren’t looking good. Unemployment is not good because that spurs growth over time. But here’s the problem we also have what’s going on with the BriCS nations.

Our world is separating into two economies right now. A lot of people don’t understand how serious this is, but the world is ganging up against the western powers and I don’t necessarily blame them. Look at this story. The consumer price index, a broad measure of goods and services costs, increased 0. 4% for the month and 3. 2% from a year ago, the Labor Department’s Bureau of Labor statistics reported Tuesday.

The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3. 1% forecast in the Dow Jones consensus. So a lot of people think that this isn’t that big of deal. Check this out. This measure is excluding volatile food prices and energy prices. I want people to understand this. Actually, I don’t need to actually get you to understand it. Food and energy are the most important part to a lot of us when it comes to inflation.

Why? Because not everybody owns a house, right? Rents are actually on the downturn right now. And energy and food prices are the two things, along with shelter, that we need to survive. We don’t care how much a big screen TV costs, we can forego that cost. We don’t care how much furniture rose, because if it just keeps going up, we’re going to sit on the same couch that we already own.

All right? But here, the core CPI rose 0. 4% on the month and was up 3. 8% on the year. Both were one 10th of a percentage point higher than forecast. Isn’t that weird? The people that went to school to tell us what is going to happen in the economy were wrong again. Now let’s dive over to zero hedge and I’m going to show you this story, a much different story.

And we’re going to look at it in graphs. Says after January’s surprised upside shift, expectations have been adjusted up over the month for another sizable month over month move in headline CPI, or that is the cost price index. But that was not enough as the 0. 4% month over month rise in the headlines as expected highest since August lifted CPI year over year up to a positive 3.

2%. Now you can look at where we’re at right now, see if we can get this bigger. And you look at this chart. I want you, obviously, we all know what this was and this was incredible. And this is what caused the Federal Reserve to raise rates so aggressively. Remember, we have not had this kind of inflation since the late seventy s and then we’ve seen these numbers come down.

However, the numbers at the pump haven’t come down very much, right? Not as consistent as you would see or think with a drop along with food and energy. Food and energy prices are still super high. Okay, so let’s dive back. Let’s see what we got here. The three month annualized CPI rate was rose to 2. 8% from 1. 9%. The six month annualized core rate dropped to 3.

2% from 3. 1%. Energy costs surged as core services inflation slowed. Now here’s the breakdown. I’m not going to go through all of it and then we’re going to talk a little bit. The index for all items less food and energy rose 0. 4% in February as it did the previous month. The shelter index increased 0. 4% in February and was the largest factor in the monthly increase index for all items less food and energy.

Let me talk about that first. When we’re talking about shelter costs, we’re talking about the lower end of shelter costs. We’re not talking about million dollar houses enough. We’re not talking about mega mansions. All of those are in the hurt locker right now. We’re seeing price reductions and days on market extend like crazy. On expensive real estate. They’re talking about median and average price. And since there’s more homes out there that cost less, that’s what goes up.

But when we’re talking about a 0. 4% in February for shelter, that is a very small price increase. The index for rent rose 0. 5% over the month while the index for owners equivalent rent increased 0. 4%. I want to share with you that all around the country there are move in specials right now and rents dropping. So when you look at these numbers, do not be deceived.

They’re telling you something that looks a little bit different. And right now the Federal Reserve needs to keep rates high not only for the fact that inflation is heavy, but also because the BricS nations are walking away straight up abandoning the US dollar. And the Federal Reserve knows that they have to give a rate of return in order to dissuade people from dumping dollars. More of that in a second.

Says airline fares index rose 3. 6% in February following a 1. 4% increase in January. We’re going to talk about, in another video later today about the airlines because there are some serious problems going on there. But you have to realize a lot of airline groups, the strikes were going crazy. There is a lot of moving around in the industry right now because of, I mean, I understand employees want more pay because they’re having to deal with inflation.

So they’re going to their supervisors and that is eventually leaking down into our cost. Medical care index was unchanged in February. The index for hospital services decreased 0. 6%. Prescription drugs fell 0. 1%. The index for dental services were among those that rose in February, increasing 0. 4% and so on. So I don’t want to bore you with all these numbers. Look at the shelter rent inflation year over year change.

So now check this out. Like I was saying before, they like to talk about these really small jumps, but overall shelter and rent inflation year over year is dropping. And I want you to understand it’s going to drop way farther than this. Now it says core CPI rose 0. 4% month over month, which was hotter than the 0. 3% expected, and up 3. 8% year over year. This is what the Fed is going to be watching a lot.

You look at where we’re at right now and we are still super heavy in inflation. Even though a lot of the government wants you to focus on this part, I want you to focus on this part. You see, because look at where inflation was way back. 20 17, 20, 19, 20 20. And then up here, this is when people started to get super uncomfortable and they’re still uncomfortable.

Now come down here. Goods deflation continues, down 0. 3% year over year, but hasn’t flattened out while service inflation remains stubbornly high. Service inflation is an interesting one because it is still feeling the pain from companies being unable to hire good employees that are qualified for their job. And the cost of getting those employees is exorbitantly high. So that’s why you’re seeing that cost for services not dropping like it is for commodities right here.

Because what this is, this is commodities, less food and energy. Again, this is stuff like furniture that people do not need to live with. So it’s dropping like a rock. And when you see a number like this, when it goes from here up to here and then down, you are seeing more and more companies filing for bankruptcy. This right here, this red line, this showing you down is why we are seeing freight brokers and freight companies file for bankruptcy because they are not shipping as many big screen TVs, as many sofas, things like that.

Now look at, down here at this number again, I want to show you, look at the mean, the average right here, we’re at the average. And I believe you’re going to see this go much, much lower. All right. So now down here, finally, it says here, we note that consumer prices have not fallen in a single month since President Biden’s term began. Consumer prices have not fallen a single month, which leaves overall prices up 19% since bidenomics was unleashed and prices have never been more expensive.

So here we go. This is where we’re at now. They were on the rise, in all fairness, before the last presidential election, but this is absolutely staggering. Now, let’s do this. Shut up. Share point here is this. The Federal Reserve cannot lower rates for two reasons. Inflation is not anywhere near its 2% mandate. And the Federal Reserve knows a lot more than general public, because the general public on purpose is not taught these things in school, that if they were to lower rates, it was for a whole new era of low debt.

People would go out and do stupid things. I mean, look at what people did during COVID When the world shut down. They decided it was more important than pay off a lot of debt. They got into more debt. They went out and bought dodge Chargers and they bought things that just blow my mind. We saw things like video games explode in price because there was such a demand for them.

Point being is that the american public really has a history of not being able to be trusted with debt, with low interest rate debt, and the Federal Reserve knows this. On top of that, they have the BRICS nations walking away from the dollar and they go, if we don’t give them some kind of rate of return, we’re going to lose the reserve currency status. Now, I would argue that that is already finished and over with.

There is a whole new era coming out and we are in a massive transition. Point being is this. There is a collapse that has already started because the changing of the guard with currencies has already begun. So you need to prepare now. So if you are hoping, begging the Fed to lower rates because you need that to survive, then you know that the collapse is already here, because you’re not the only one.

You need to wake up and understand what’s going on and this crash is happening. Jerome Powell was on record the other day saying, or a week ago saying, banks are going to fail. A lot of banks are going to fail because of these higher interest rates. And when the banks fail, they’re not going to want to loan as much or they’re going to charge you a lot more lending.

That is going to absolutely crater the economy. Look, I hope you got something out of this. Thank you so much for watching. I’m going to be putting out a bunch of videos today because there’s a lot of news. So if you don’t mind tapping that bell icon, let’s go crush it together. With that being said, the economic ninja is out. Bye. .

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