Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Philstockworld (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

13,000 Thursday – Nasdaq Poised to Fail Critical Support

% of readers think this story is Fact. Add your two cents.


Transitory” Inflation is still here – month 5.

While the Fed tries to convince us it won’t last, inflation is soaring higher and higher and bonds are dropping as that market doesn’t believe a word the Fed is saying – especially after yesterday’s decade-high 0.8% jump in Consumer Prices – double the projections by the usual crew of leading Economorons.  How long inflation readings persist on the high side has implications for when the Fed decides to start withdrawing monetary stimulus by paring back bond-buying and raising interest rates from near zero.   

“Transient does not mean one month. As supply shortages run up against aftershocks from fiscal stimulus, and the base for comparison remains low, the CPI will continue to run hot into the summer. The impact of the Colonial pipeline shutdown on fuel prices will also have to be monitored closely.” — Andrew Husby and Yelena Shulyatyeva, U.S. economists

Transitory pandemic influences clearly contributed to the surprise but there’s residual firmness in core inflation that’s hard to ignore,” said Michael Gapen, chief U.S. economist at Barclays Plc. Aside from the reopening effect, “there was still some residual firmness that suggests risks around inflation in the near term are still skewed to the upside.”  Wages have shown signs of picking up, and supply chain challenges have elongated delivery times and driven materials prices higher.

Tranportation Services have not jumped 5.8% since 1975, when the Fed Funds Rate was at 7%.  More Federal Spending means more inflation, not even Powell can pretend that it doesn’t and Biden still has proposals to spend $4Tn more on Infrastructure along with the Fed’s ongoing $2Tn giveaway program and, of course, 0% borrowing rates.  If either the stimulus bill is dropped or the Fed allows rates to rise to contain inflation – the blowback on the market could be tremendous.

It’s not just the $28Tn National Debt we need to be concerned about but the $10.5Tn of Corporate debt that is 100% higher than the last time the market crashed – as companies have been on a low-rate binge ever since.  And what is the main thing corporations spend all that borrowed money on?  Buying back their own stocks to make their static earnings look like they are making more…

Provided courtesy of Phil’s Stock World.

To read the rest of this article now, along with Phil’s live intra-day comments, live trading ideas, Phil’s market calls, additional member comments, and other members-only features – Come to the winning side at Phil’s Stock World by clicking here.

To sign-up for a free trial membership, click here.



Source: https://www.philstockworld.com/2021/05/13/13000-thursday-nasdaq-poised-to-fail-critical-support/?utm_source=beforeitsnews&utm_medium=feed&utm_campaign=psw-feeds&utm_content=article-link


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.