[Last Refuge] The great pretending continues. During a Sunday talk show appearance, San Francisco Fed Chair Mary Daley states, "what I see is supply and demand are just unbalanced. About 50% by my own staff’s estimates of the excess inflation we see is related to demand. The other 50% to supply." Note, she is not talking about energy.Margaret Brennan, maintaining her position as the professional CBS narrative engineer, never thinks to ask: (a) where is this demand you speak of, and what exactly are they demanding? and/or (b) What is this 50% inflation on the supply side connected to? Obviously, an actual probing of inflation wasn’t in the script. The great pretending continues. [Transcript Here]
CTH has stated without reservation that August’s inflation report will show a significant —albeit temporary— drop in inflation as measured by the govt. The drop in gasoline prices throughout July (created by a drop in demand) will allow the fiscal and monetary policy makers to falsely claim overall inflation peaked. However, after a brief respite the inflation now growing in the ground (massive increases in farm costs), will then launch into the food supply chain. This delayed food inflation will overtake the energy inflation in the latter part of this year. WATCH: