“The rise in prices is not yet subduing, suggesting a continuation of the rise in key rates of the main central banks. The hypothesis of a recession remains central on both sides of the Atlantic and obscures the atmosphere. Forty-five central banks have raised their reference rates in recent weeks, with widespread effects globally ”.
Yes, you read that correctly.
- inflation is not going down and that is what I was trying to show you yesterday with the inflation graphs of producer prices, which is a leading indicator of the rate of inflation.
- we are on track for a generalized and globalized recession due to rising interest rates.
- 45 central banks raise rates. And that’s also what I’m trying to show you when I tell you the dollar is growing against all currencies. Whenever the Fed raises its rates, the whole world is obliged to follow it to safeguard exchange parities. This will create a crisis in all emerging countries with fragile currencies.
Finally, as they say in the United States …
“Good news is bad news”
“In the United States, according to the monthly employment report released on October 7, the number of jobs created in September was higher than expected. The unemployment rate fell to 3.5%, a situation of almost full employment. And the consumption resists.
This good news for the economy is actually bad news for the markets because it means that the US economy is still very strong and therefore inflationary. We will therefore have to raise rates faster and higher than the markets had predicted for the time being.
Refer to my latest strategy file “Central Banks Are Attacking You, How To Turn Their Strategy In Your Favor” where I explain what the Fed will do, at what pace and in what proportions. This is the key to the assets of the coming months. If you understand what will happen then this will allow you not only to protect your wealth, but more importantly to turn this attack by central banks into opportunity. All the information to register is here.
Carlo SANNAT
“This is a ‘presslib’ article, ie exempt from reproduction in whole or in part provided this paragraph is reproduced after it. Insolentiae.com is the site on which Charles Sannat speaks daily and offers a sassy and uncompromising analysis of business news. Thanks for visiting my website. You can subscribe for free to the daily newsletter on www.insolentiae.com. “
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