The way you kill inflation is to kill the economy.
Inflation happens when there’s more demand than supply.
if you raise interest rates, then people won’t borrow so much and hence will buy less. So prices (and inflation) will fall.
Economists call this the monetary approach to inflation. They never address supply. That’s always a given.
Today it’s not.
As bottlenecks ease and factories ramp up, supply will increase. That should ease inflation.
The stockmarket is not loving the high inflation numbers of the producer price index, which jumped 9.6% in November.
Personally, I think the market is over-reacting hugely. But not one that’s very pleasing. I’ve “lost” the equivalent of nice small house in recent days. Fortunately, it’s still the bank’s money.
My prediction is that we will have a Santa Claus rally and it will recoup some of my lost house, at least the front porch.
My friend, Fred B., says hope is not a strategy. But neither is selling everything and buying it back when the stars are aligned.
I’ve been there, done that. It doesn’t work.
The Fed is meeting today and tomorrow. It will report publicly tomorrow afternoon.
Some useful stuff
+ “I have been using Costco online a lot more lately than Amazon .. free shipping and good quality selections.” — reader T.S.
+ Alexa will play Taylor Swift’s “Shake It Off.” Whenever your favorite stock falls or you lose at tennis, it’s soothing to hear “Shake It Off.”
+ Dictate your brilliances to the new iPhone 13. You’ll be blown away with its speed and accuracy.
+ Hold down “space” on your iPhone. Bingo, it turns into a mouse pad and lets you move your cursor around.
+ Anker conference phone. Six mikes, great for zoom calls in a conference room. $129.
I remember when devices like this used to cost thousands. Click here.
How was the Tesla?
From Al Moran or the Moran Group:
The pick up was back breaking, so I had to keep it on “Chill”. Even on “Chill”, I could zoom out of difficult traffic situations. No gas stops.
It could park itself perfectly. I could ask (on my iPhone) where it was, and a map would pinpoint its location.
The screen was new for me, but very useful. The sound system was great.
Plugging it in was much easier than filling it up. The key was a card.
The map on the screen was big and very useful.
When I approached the car, it would feel that I had the right key ( card) and it would be open.
Girls would approach and ask “if I liked my Tesla” (nice even though I am married).
Warm regards and Happy Holidays, Harry
You think today’s market is bad?
Check out Turkey. Here’s a Gatestone Institute piece: Economic Turmoil Shaking Erdoğan’s Throne. Click here.
The Washington Post’s research
Long covid is destroying careers, leaving economic distress in its wake
Suffering from debilitating exhaustion and pain for months, patients find themselves on food stamps and Medicaid
You really don’t want Long Covid. Get your booster. Say masked.
For the depressing Wash Post article on long covid, click here.
Last Saturday Night Live was fun
Favorite cartoons
I think today is teaching me the secret to a small fortune.
Start with a large one.
See you soon. — Harry Newton
