“The Federal Reserve’s determination to reduce inflation by raising interest rates will make for an ever-stronger Dollar. A strong Dollar is good for America.” – The Lonely Realist A celebrated Wall Street maxim is that “Whatever might appear to be obvious is obviously wrong.” What seems...
The recession may be deepening. Inflation has been and continues to be underreported, due to the underestimation of the Owners’ Equivalent Rent (OER) component of CPI. OER, which is 24% of CPI, has been increasing lately. Combined with wage pressures and other economic challenges, this...
In today's economy, there are a lot of challenges that people are facing. There is a lot of government and private debt, deficits, and dislocations, which can be difficult to understand and reconcile. The Federal Reserve has also reversed direction, discarding Quantitative Easing in favor...
“Inflation is the dragon that the Federal Reserve must slay. At what cost?” – The Lonely Realist The anticipated recession has arrived. America has suffered two consecutive quarters of negative GDP growth, the classic definition of recession (as discussed here). If more evidence were needed, the...
“This week’s Fed Rate Hike and negative GDP report provide recession grist for would-be oracles, but don’t bet-the-farm on alleged experts’ conjectures. No one can predict the future.” – The Lonely Realist Those who assert their ability to predict the future are optimistically representing their guesses...