The PPI figures dipped 0.2% in May, which is good news. For course, CNBC is still calling PPI figures “wholesale.” Argh!
This letter was written by Elizabeth Warren on Monday.
It’s the most insane thing I’ve ever read by a “financial expert.“
Tell me that you don’t understand where inflation originates from… without telling me that you don’t understand inflation. It’s like you’re running for something…
It would be very easy to stop inflation, Senator.
Just stop spending money.
Fiscal insanity is the problem.
You work in the Senate.
Let me write you a letter in response…
June 12, 2024
Dear Senator Warren,
I write to express my concerns regarding your and Senator Jacky Rosen's views in your June 10, 2024, letter to Federal Reserve Chair Jerome Powell.
It appears that you may have overlooked several critical factors that are essential to understanding our current economic situation.
You assert that the Federal Reserve has neglected the principal drivers of inflation.
It is crucial that we confront this assertion directly, as it represents a significant point of contention that requires some awkward direct speech.
YOU, Madam Senator, and your fiscal negligence are why we all suffer under the oppressive weight of inflation.
YOU and all your esteemed colleagues… you allocate billions to foreign nations while Americans beg and sleep on the streets.
YOU and the so-called noble lords and ladies are the people who dictate the winners and losers of America’s socio-economic landscape. This isn’t capitalism. You murdered capitalism after the 2008 financial crisis.
And you’re failing because of politics.
YOU and your elite circle of donors overbear us with the generational burden of your decisions.
What is the source of inflation?
This isn’t hard.
Milton Friedman articulated it perfectly in 1978:
“Inflation is made in Washington, because only Washington can create money. And any other attribution to other groups of inflation is wrong. Consumers don’t produce it. Producers don’t produce it. Traders don’t produce it. Foreign sheiks don’t produce it. Oil imports don’t produce it. What produces it is too much government spending, and too much government creation of money, and nothing else.”
When you funnel billions of taxpayer dollars printed by the Treasury to foreign entities,
YOU, Elizabeth Warren, create inflation.
Where do we start with this…
YOU and your cohort of septuagenarians and octogenarians are eager to sell out future generations because sometimes the grift is too good to pass up.
YOU did this.
Writing letters on fancy letterhead doesn’t excuse you.
And, predictably, you now want to drown what little of American capitalism there is still left.
When you joined the Senate, the U.S. had an Economic Freedom Index at 76.
It’s been downhill - all the way to 70 - in the 11 years you’ve pretended to be a leader.
Inflation is a phantom menace robbing your poorest constituents blind.
Haven’t you done enough?
Can’t you just shut up for five minutes?
The answer to our economic problems starts with calling people like YOU out.
Then getting around a table and discussing what NEEDS to be done to restore America as the leading financial system in the world.
Because without America… life in the world will be nasty, brute, and short (to quote Hobbes).
I own part of a business in Finland for a reason.
Because you can’t get to it.
You’re the problem.
I assure you that cutting rates is not the solution.
Far from it. It is time to usher in an era of sanity, followed by sincere steps towards austerity. But I’m not stupid enough to pretend that austerity will ever happen.
You’re going to spend and complain for the rest of your life.
That’s what you do.
I’ll be over here trying to operate businesses under your bullshit.
It’s a good thing that you’re a politician and an academic.
You wouldn’t survive in the wild.
Onto Italy
To my friends and readers… I’m heading to Italy this afternoon.
Markets are pricing in cuts… and it should be a positive month now with liquidity expanding.
And with the government spending, because of idiots… and I MEAN idiots like Warren… stay long equities.
And Finally
Breaking news from ESPN…
"We are devastated to learn that Joey Chestnut has chosen to represent a rival brand that sells plant-based hot dogs rather than competing in the 2024 Nathan's Famous Fourth of July Hot Dog Eating Contest," Major League Eating said in a statement.
Now is a good time to remember that America is holding off well.
If this is on the front page of ESPN on a Tuesday, we’re still a functioning society.
Stay positive,
Garrett Baldwin
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