Hot Links to News You Should Know
As part of our commitment to keeping our clients informed, here are links to a few headline stories that you may want to know about.
From CNBC comes this headline: Maybe inflation is not dead as many major companies say they are raising prices.
While higher prices were hard to pass along to consumers in the years after the financial crisis, the story reports that price increases now by railroads and companies like Kimberly-Clark and Whirlpool have played an important part in their profitability.
The story cites one analyst who says that the anecdotal comments about pricing from companies show that “inflation is not dead.”
What they should say is that consumer price inflation is not dead and appears to be making a comeback. Asset price inflation, as we have been tirelessly pointing out about the stock market bubble, has been very much alive.
This headline is from CNN, Social security won’t Be Able to Pay Full Benefits by 2035.
In some ways the story might be considered old news, except that it adjusts the date it projects that the Social Security trust fund will run out of money to 2035.
Social Security is expected to pay out more to beneficiaries next year, 2020, than it generates in revenue, a pattern that will continue for the foreseeable future.
We will only comment that all these stories about the Social Security trust fund neglect to point out that there is no such fund. The money has been spent. In its place a notoriously irresponsible government has left only an IOU. We might say there is no security, no trust, and no fund.
And here’s an article from the Economic Collapse Blog we found insightful: Do You Remember The Oil Crisis And “Stagflation” Of The 1970s? In Many Ways, 2019 Is Starting To Look A Lot Like 1973…
This look back at the stagflation decade with its powerful gold bull market begins this way: “The price of gasoline is rapidly rising, economic activity is slowing down, the Middle East appears to be on the brink of war, and Democrats are trying to find a way to remove a Republican president from office. In many ways, 2019 is starting to look a lot like 1973.”
Some of the similarities are a little eerie.