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White House and the Federal Reserve Board ; See, Hear and Speak No Inflation

the staff of the Ridgewood blog

Ridgewood NJ, the whispers from the White House and the Federal Reserve Board that inflation is “transitory” have become less  and less persuasive with each passing day. The new CPI numbers show 5.4% year over year inflation and the September number on an annualized basis is above 6%. Recall from last week that the commodities index is at a five year high and is up than 50% over a year ago. Here are three additional charts from our friend and financial wizard Scott Grannis that we thought were eye-popping. You can make up your own mind if you think inflation is a problem.

The commentary beneath each chart is from financial wizard Scott Grannis:

“M2 trend growth has been 6-7% for decades. Since Mar. 2020, M2 growth has blown away all past records for growth. Huge deficit financed spending has been the main source of household’s extra cash. M2 has been rising at a 13% annualized pace so far this year, on top of the huge increase in March-May of 2020.

“My thesis: money demand peaked more than a year ago. That could reverse now that inflation expectations are starting to rise. Attempts by the public to reduce money balances could drive lots of inflation. The fed has done nothing to offset this and probably won’t for a long time.”

“There is an 18 month lag between rising house prices and rising owner’s equivalent rent. We are only now at the beginning of the increase in OER. This could drive higher CPI inflation for the next year or two.”

3 thoughts on “White House and the Federal Reserve Board ; See, Hear and Speak No Inflation

  1. Keep voting for Democrat politicians and this is what you get.

    2021 gasoline: up more than $1.50 a gallon on average.

    2021/2022 winter heating: natural gas expect 30 percent rise in your monthly bill. Oil heat expect 36 percent rise in your monthly bill. Electric heating expect 41 percent rise in your monthly bill.

    2021: Grocery prices rising every week while manufacturers of food products shrink package contents so prices don’t go to the moon and beyond.

    2021: Biden wants 24 hour labor at backed up sea ports to get goods rolling. That won’t help. Wild price increases of fuel have produced a lack of long distance truckers willing to transport goods across country for basic pay and more cost to them to fuel their trucks. Transportation and cost of fuel rules everything but Biden doesn’t understand.

    2020: USA energy independent. Low prices and plentiful domestic supply.

    2021: USA no longer energy independent. Thanks to Biden the USA is now energy dependent on foreign suppliers (Biden closes American pipelines then stupidly asks Middle Eastern suppliers to sell us oil) equals rising costs and massive inflation.

    If you don’t vote for fiscally conservative politicians and you vote for tax and spend Democrats you get wild inflation and your wallet suffers.

    But they want to give you free community college!

  2. This is what happens when you pick an administration based on feelings and not merits. Many voted against mean Trump tweets ignoring the bigger danger ahead that anyone with minimal brain capacity could see. Very short sighted. Here we are with a government with plenty of woke incompetents whose only merit is either skin color or gender identity. A government to fear of with its total irresponsibility and carelessness towards real interests of the american people. This country is doomed. RW will continue to vote blue by large margins no matter what. The level of brainwashing is incredible.

  3. Ridgewood… Home of the RICH and STUPID

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