
Policy Lags are Real – Inflation’s Days are Numbered
There are several measures of the money supply, the most looked at being M2 (cash + demand deposits + time deposits + retail money market

As Signs of Recession Mount, the Fed Reiterates its Hawkish Path (Even Volcker Relented as the Recession Approached!)
The chart shows the continued downtrend in same store sales and, while the Seasonally Adjusted (SA) rise in April’s Retail Sales of +0.4% over the

More Proof: Deflation Is The Future
Consumer Prices The Consumer Price Index (CPI) rose +0.4% in April (4.95% Y/Y). Core services (ex-housing), an important sub-index for the Fed, came in a

The Seeds of Deflation – Sewn by the Fed
Despite the many announced layoffs these past few months, the unemployment rate decreased to 3.4%. That’s tied for the lowest level since 1953. Of course,

March Inflation: In Like a Lion; Out Like a Lamb
The CPI came out on Wednesday – it only rose +0.1% in March – that’s down from +0.4% in February and +0.5% in January. On

Deflation is the Future
Most of the panic from the mid-March bank runs seems to have dissipated. But, we caution, most of the real fallout lies ahead as banks