Inflation Reality Bites The Biden Administration
Candy Matheson | May 13, 2021 02:26AM ET
Uh oh...Wednesday's US CPI and Core CPI data shows that inflation has dramatically spiked -- to numbers not seen in multiple decades -- as shown on the graphs below.
"Inflation cycles feed on easy money; so the odds increase with each passing day that the new inflation cycle will not prove to be 'transitory.'"
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The SPX:VIX ratio closed below the 200-day MA, as shown on the following daily ratio chart.
Following their respective trendline breaks, all three technical indicators are signalling further weakness for the SPX. If the ratio fails to retake and hold above the 200 MA, then we should see the selling continue.
If the Biden administration is not worried about today's inflation numbers -- or much else it seems, as they lurch from one self-inflicted crisis to another -- plenty of economists, analysts, politicians, and military personnel are, as evident in the following articles.
No doubt, voters are, as well...so, I think the 2022 mid-term elections will produce a rude awakening for the President and his party. For one thing, I doubt whether inflation is "transitory," as is being pushed by the Fed. One way or another, everyone will pay higher prices and taxes, as a result...not just those making over $400,000, as promised by Mr. Biden.
Furthermore, Joe Biden has garnered many other strikes against his administration and its extreme far-left socialist policies and agenda...and it's only Month Five of his first term. There is much more damage he can inflict on the country, including completely destroying its national security and infrastructure matrix (including cyber), along with domestic and foreign peace in the process, unless someone slams the brakes on his out-of-control executive actions and orders.
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