So, it’s a mystery. Well, not really. The more jobs, the more money is in the economy and the more inflation there should be. It hasn’t happened. What’s wrong?
This post inspired by: The Mystery of Missing Inflation Weighs on Fed Rate Move
Photo: Scott Eisen/Bloomberg News
It can only be the jobs figures, or more correctly what they hide. And they are designed to hide the fact that the US economy, the real economy not the fictitious one manufactured for Wall Street’s benefit, is on the rocks.
So, I continue to predict, against most other sources anticipating the move, that the Fed will not raise interest rates tomorrow (US time). In all honesty, they can’t take that risk. The banks wouldn’t like it anyway, as they will lose their risk-free, do-nothing, profit money.