This morning over at Capitalstool, I accurately guessed that the market would be sprised by a lower than spected flatus print.
How did I know that? First, the shorts were already showing that they were their own worst enema.
Second, the pre market already had the stank of what was coming. Any idiot could see it. Proof was that I did.
Guess you’re wonderin’ how I knew, bout these plans to make you blue. Well I didn’t hear it through the grapevine. I just followed the the moan, ay!
It’s not difficult to know what the poopular flation measures will report. They follow the money.
In fact, CPI, which measures something, but not general inflation, is now overstating actual inflation, as I forecast that it would some months ago. That’s because house prices are crashing and house prices aren’t included in CPI. 40% of core CPI is manufactured out of a Fed survey of contract rents. They ignore market rents, which is the real current market price of renting. Contract rents lag market rents, so the fall in market rents won’t show up for a few more months. And the crash in housing prices will never show up.
And Philadelphia Inquiring minds want to know, when prices are falling, does the BLS substitute steak for hamburglar?
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