CPI / PPI - Inflation highest in US History"Consumer Prices rise in July, but rate of inflation slows"
Yeah, Nah.
Bullshit.
Fed minutes released next Wednesday will show an increased number
of Federal Reserve Board of Governors favor Taper.
The count of those in favor now stands at 6 up from 2.
Jerome Powell's recent Press Conference demonstrated Inflation is
not going down.
"The increases will happen, we're not saying they will reverse. That's
not what 'Transitory' means. It means that the increases in Prices will
happen, so there will be Inflation, but the process of Inflation will stop."
".....but you don't have an Inflation Process...."
Rents continue to explode higher, yet to be fully appreciated by the
CPI, that's dead ahead.
Rents
Housing - A Shortage of Qualified RentersThe country is running out of affordable places for people to live.
Private Property rights are being suspended.
The share of people behind on mortgages, after falling steadily
for months, recently hit its pre-pandemic level.
Housing conditions over the past year make it clear that while
one crisis is passing, another is growing increasingly worse.
The pandemic has left millions of others struggling to make their
housing payments, especially lower-income households and people of color.
For the past year, lower-income tenants have relied heavily on government
support to pay their monthly bills.
34% of renters used unemployment or stimulus payments to pay rent at some
point during the pandemic — but the majority of renters still had to borrow
or draw on savings to cover bills, leaving them less able to weather future
emergencies, much less save for personal investments or a down payment
for a home.
safeguards have expired over the past few months, and the federal eviction
moratorium issued by the Centers for Disease Control and Prevention in
September will come to a decided closure at the end of the month.
The president undertook an Executive Action that the Supreme Court has
just determined is illegal.
A U.S. appeals court ruled on Friday, July 23rd that the Centers for
Disease Control and Prevention lacked authority for the national moratorium
it imposed last year on most residential evictions to help curb the spread
of the coronavirus.
Several States have kicked the can down the road into September 3oth to
October 31st.
Prior rulings are being overturned State by State, Lawsuits are being filed
daily as Realtors are feeling the squeeze as Independent Producers are
facing large losses, unbale to recover back Rents past due.
Extending these losses will compound the anger and outrage.
The Rentier class isn't rolling over.
VIX - Into Roll / SettelementTipping the Boat ahead of CT Roll is stock in trade for the VX Complex Options Writers.
Position Rolls across the Markets will have a profound effect this as we begin to square.
CASH/SPOT VIX shows further complacency as Volumes dry up.
RTY and NQ will lead to the downside as "Independent Producers" (SMALL Businesses) will
continue to be croaked as they have been since March of 2020 for the RUT 2K. As for Tech,
it is facing some large headwinds with respect to the current Rate Revolt and China's
heavy hand.
Warning Signs abound across the Spectrum, on balance, they are being roundly ignored by
the Junior Investor/Trader.
A FAT Finger trade is all but assured as Wall Street takes some Bacon off the table as
Uncertainty will begin to shake belief structures.
Financials theoretically should benefit from rate inking up, the ES and RTY would be positioned
to benefit the most due to the large Financial Component structures... theoretically :)
ES would likely catch the bid.
The issue we have with this basis - Housing has reaches extremes as the Crisis in Real Estate is
just beginning to unfold.
Law suits are all but assured as the Administration has come under fire from small Independent
Producers of Rentier Class profits... they are being squeezed and remain furious with a growing
intensity.
The Admin is clearly behaving in an Illegal manner in order tp maintain moratoriums on Rents.
An Executive Order followed by the CDC's rubber stamp would only further the Crisis and lead
to an increasing distrust of Lever Pullers.
