Dollar’s Purchasing Power Plunged at Constant Speed
By Wolf Richter for WOLF STREET.
The Consumer Price Index (CPI) jumped 0.5% in July from June, after having jumped 0.9% in June, 0.6% in May, for a three-month annualized rate – the three-month momentum – of 8.1%. Year-over-year, CPI jumped 5.4%, same pace as in June, and the fastest since June 2008 (5.6%), all of which had been the fastest since January 1991, according to data released by the Bureau of Labor Statistics today.
The CPI without the volatile food and energy components (“core CPI”) rose by 0.3% for the month and by 4.3% year-over-year.
The CPI measures the loss of the purchasing power – well, part of the loss of the purchasing power, as we’ll see in a moment – of the consumer dollar and thereby the purchasing power of labor. In July, this purchasing power dropped another 0.5% for the month, and for the past three months annualized, it dropped by 8.6% – “Honey, where did my big raise go?”
Martin Armstrong Never Said This Before
Ticking Bond Bomb
In 2019 I talked a lot about Quantum Economics.
What is Quantum Economics?
It’s the new world we live in. Negative interest rates, high bond prices, strong US dollar, and a stronger gold price.
When I was on a panel at a large resource conference 5 years ago… I stated in the coming years we would have further negative interest rates and higher bond prices. The other panelists and “gurus” stated that was “metaphysically impossible”.
Well, it’s exactly what happened and we are now in an era of Quantum Economics.
Be careful of following a dated “framework” by a dated guru.
For example, did you know that if you bought a French or German 10-year bond, you’d lose money?
Yes – yields on those 10-year government bonds are negative.
Let’s turn to their neighbor, Switzerland. It’s a pretty safe country so you’d think it would be hard to lose money there right?
Infrastructure bill break down
Lone Senator Rejects Crypto Compromise in Infrastructure Bill
By Nikhilesh De
In a blow to the digital assets industry, the U.S. Senate did not adopt a bipartisan compromise on a crypto tax provision in its $1 trillion infrastructure bill after a vote Monday.
U.S. Senators Cynthia Lummis (R-Wyo.) and Pat Toomey (R-Pa.) announced the compromise was supported Democrats, Republicans and the Treasury Department when introducing the amendment earlier in the day, saying it would exempt crypto transaction validators from a broadened definition of “broker.”
U.S. Sen. Richard Shelby (R-Ala.) filed an objection after attempting to attach his own amendment to increase military spending. Sen. Bernie Sanders (D-Vt.) objected to the Shelby motion, resulting in Shelby then objecting to the overall compromise.
Understanding Options: An Interview with Michael Sincere
What’s Really Behind the War on Home Ownership?
Inflation? Pay No Attention to the Money Behind the Curtain.
Ted Butler: Coming Silver Breakout Will be Violent
Why the U.S. Isn't Going to Ban Cryptocurrencies
By Eric Wade
Crypto regulation is coming...
Over the past few months, China has banned crypto mining operations and ordered big banks not to do business with crypto companies. The Federal Financial Supervisory Authority in Germany, known as "BaFin," announced it will be regulating alternative investment funds that want to invest in digital assets like cryptocurrencies. And South Korea's Ministry of Strategy and Finance is launching tax rules and regulations for crypto transactions beginning as soon as 2022.
That's on top of the U.K. Financial Conduct Authority recently saying it will clamp down on major exchange Binance's activities in the U.K.
All of this regulation might sound like a death blow to cryptocurrencies... but it's actually a good thing.
Did The Housing Bubble Pop? with John Rubino
Gold Rebounding As Fed Signals No Rate Hikes | Jerry Robinson
Financial System Has Come to an End – Martin Armstrong
Legendary financial and geopolitical cycle analyst Martin Armstrong thinks we have come to the end of the line for the financial system, and this is why globalists are on a power grab of epic proportions. Armstrong explains, “The system has come to an end. They know they can no longer borrow indefinitely. So, what is this “Great Reset’? It is basically a move to redesign the world monetary system. They are going to stop the borrowing that they are doing, and they are just going to print. You also have this move for a digital currency. Once they move to a digital currency, they can impose negative interest rates and just take money out of your account at will. People don’t realize what this really is. . . . I believe Bitcoin was started by the government to get this whole ball going. If I gave you a $100 bill, they don’t know where I got the $100 bill from.
