The Deputy Editor (Business)* at Asia Times has questions.
From the AT, September 15:
Its credibility hingeing on the inflation outlook, Biden administration pushes a $3.5 trillion stimulus plan
Consumer prices rose in August at a 3.6% annual rate, down from a 6.1% annual rate in July, the US Bureau of Labor Statistics reported Sept. 14. The cost of shelter, which accounts for two-fifths of the US Consumer Price Index, reportedly rose by just 0.2%, the smallest increase since February, and less than half the July and August level.
With private surveys reporting a nearly 20% jump in home prices over the past year and 10% to 12% increases in rent, the official number is a mystery.
The credibility of the Biden Administration hinges on the inflation outlook, with the Administration pushing a $3.5 trillion stimulus plan against objections of many Democratic legislators who fear the wrath of voters over inflation.
The Biden stimulus reportedly is just three votes away from collapse in the House of Representatives, and the defection of one West Virginia senator may sink the plan in the Senate.
Inflation expectations have risen past the pain threshold in all the major surveys. On Tuesday the New York Federal Reserve reported that consumers expect 5.2% inflation over the next year and 4% inflation over the long term.
The BLS also reported a 1.5% drop in used car prices, not surprising after a 32% year-on-year increase in the category. Dealer lots are empty, with an inventory of just three weeks of sales, the lowest on record.
Industry analysts expect US auto production to fall by 1.5 million units this year due to shortages of computer chips. The sales crash is the result of production bottlenecks in the face of continuing high demand, which means that the all-in price of new cars will rise sharply as dealers eliminate discounts and charge the full sticker price.....
....MUCH MORE
Our boilerplate mini-bio for the writer:
...The author of this piece, David Goldman, is Deputy Editor (Business) at Asia Times.
Prior to taking that position he was:
- Global head of credit strategy at Credit Suisse
- Global Head of Fixed Income Research for Bank of America
- Global Head of Fixed Income Research at Cantor Fitzgerald
In addition to apparently not being able to hold onto a job I think one of his requirements for moving on was a "Global Head" title. (JK, young Master. G.)
