The Producer Price index data (PPI) came in much hotter than expected on all levels, and the year-over-year is still massively larger than expected. The headline number of a 1% increase was much greater than the 0.5% rise expected.
I was listening to CNBC as they were announcing the numbers, and Steve Leisman, the proverbial MSM economic shill, stated something interesting. He said though the numbers are coming in higher and hotter than expected on an ongoing level, the consumer seems to be accepting it quite fine.
This made me think of something interesting. I have to suspect the monetary and fiscal authorities are experimenting on us in real time to see what the consumer will do and accept as conditions change. It got me thinking that since the supply chain is now under the complete influence of the globalists, and the demand-pull was intentional, I suspect the elites are experimenting on us like lab rats to see how we will accept our deteriorating conditions as overburdened debt slaves. Based on what I’m seeing in my experiences as a consumer, and property manager and investor, I see the people accepting whatever is thrown at them, including this engineered inflation. I don’t hear of anybody complaining, including prospective rental applicants. I find it all quite strange, but not entirely all that shocking.
Though my property management expenses have been rising about as fast as my rents, they are still much smaller as a percent of the rent roll, and thus, being a landlord has become more profitable under these inflationary conditions. Very few people own rental properties, while about 40% of the population rent from a landlord.
I noticed the Empire State manufacturing index was another dud, coming in much lower than expected. At least this month’s reading was above zero… but just barely.
It seems to be the worst of both worlds for Joe and Jane six-pack.
I do hear a lot of talk in the MSM about companies expanding in anticipation of pent-up demand. I hear the airlines and hotel chains getting are all excited in anticipation of a busy summer season. Let’s see what happens.
I think I know why the elites are experimenting on us with this persistent and elevated inflation. Perhaps the fiscal and monetary stimulus programs that were initiated under the guise of the covid crisis was nothing more than one large universal basic income (UBI) experiment.
I suspect that the elites may become emboldened to proffer UBI-types of programs for the masses in the future, and are working to iron out the kinks. UBI will be massively inflationary as the plebs will continually undervalue the costs of their demand. This demand-pull will prove to be extremely profitable to those who own the income generating assets.