Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Inflation Reality Bites The Biden Administration

By Candy MathesonMarket OverviewMay 13, 2021 02:26AM ET
www.investing.com/analysis/inflation-reality-bites-the-biden-administration-200579789
Inflation Reality Bites The Biden Administration
By Candy Matheson   |  May 13, 2021 02:26AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Uh oh...Wednesday's US CPI and Core CPI data shows that inflation has dramatically spiked -- to numbers not seen in multiple decades -- as shown on the graphs below.

"Inflation cycles feed on easy money; so the odds increase with each passing day that the new inflation cycle will not prove to be 'transitory.'"

-- Source: ZeroHedge.com

U.S. CPI And Core CPI Data
U.S. CPI And Core CPI Data
Subsequently, North and South American markets got hammered, as shown below.
North And South American Markets Performance
North And South American Markets Performance

The SPX:VIX ratio closed below the 200-day MA, as shown on the following daily ratio chart.

Following their respective trendline breaks, all three technical indicators are signalling further weakness for the SPX. If the ratio fails to retake and hold above the 200 MA, then we should see the selling continue.

SPX:VIX Ratio Chart
SPX:VIX Ratio Chart

If the Biden administration is not worried about today's inflation numbers -- or much else it seems, as they lurch from one self-inflicted crisis to another -- plenty of economists, analysts, politicians, and military personnel are, as evident in the following articles.

No doubt, voters are, as well...so, I think the 2022 mid-term elections will produce a rude awakening for the President and his party. For one thing, I doubt whether inflation is "transitory," as is being pushed by the Fed. One way or another, everyone will pay higher prices and taxes, as a result...not just those making over $400,000, as promised by Mr. Biden.

Furthermore, Joe Biden has garnered many other strikes against his administration and its extreme far-left socialist policies and agenda...and it's only Month Five of his first term. There is much more damage he can inflict on the country, including completely destroying its national security and infrastructure matrix (including cyber), along with domestic and foreign peace in the process, unless someone slams the brakes on his out-of-control executive actions and orders.

Inflation Reality Bites The Biden Administration
 

Related Articles

Jeffrey Halley
Variable Side Effects By Jeffrey Halley - Jun 18, 2021

The response by the markets to the FOMC dot plot shock has been variable, to say the least, and not a little surprising to me. Equities did their duty and eased, but not,...

Inflation Reality Bites The Biden Administration

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Candy Matheson
Candy Matheson May 14, 2021 1:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
To read the articles referenced in my post, as well as any updates, go to this link on my Blog: https://www.strawberryblondesmarketsummary.com/2021/05/inflation-reality-bites-biden.html
Steve Faulkner
Steve Faulkner May 13, 2021 8:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There was inflation during the end of trump period also, what can the republicans do to change the printing. Trump printed money also.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email