Inflation Soars In June, Recession Next?

DOL says inflation soared MORE than expected in June to 9.1% & hit new 40-yr high as FED sets to raise interest rates again. Yet deluded NYTimes & WSJ pedal Joe’s mantra “lower gas & food prices may be turning point”.

You may wonder why, when most economists were predicting an 8.8% inflation rate for June (compared to 8.6% in May), yet the WH & MSM stories started to redirect aka BS folks into focusing on LOWER gas & food prices in recent weeks. For one thing, the so-called “lower” prices are partly due to the fact that struggling households are buying LESS of those commodities, while some local, state & federal governments are artificially (& temporarily) reducing the TAXES they charge or releasing strategic oil reserves that are supposed to be used in time of war. Besides, as Trump’s economic advisor, Larry Kudlow, pointed out earlier this week, those “basics” are a relatively small part of the forces driving inflation & you can’t “switch inflation on and off like a light bulb.” Even if the “supply chain issues” are being improved to help solve some shortages, he warned, there are bigger, badder costs skyrocketing, e.g., for those related to HOUSING, with no end in sight.

As the WSJ emphasized, this month’s inflation boost should not have been surprising since HOUSING costs & RENTS are zooming across America as landlords make up for pandemic lockdown rent freezes. Then, there’s the red flag from Redfin saying house deals are “falling through at the fastest rate in 2 years” because of increased prices & mortgage rates. Latest bottom-line from NY FED & Bank of America: The only way to stop this inflation engine is via a LONG, DEEP RECESSION.

Davd Soul