Fortress America: Monroe Doctrine Says Higher Rates Coming
S&P, Gold Technicals, Apple, and Oil
Housekeeping:
**FOUNDERS: THERE WILL BE A FOUNDERS DISCUSSION THIS SUNDAY 2PM
RECENTLY OUR TWITTER ACCOUNTS WERE PERMANENTLY SUSPENDED FOR CALLING OUT TWITTER’S CEO ON SOMETHING SILLY. WE WILL CREATE A NEW ACCOUNT AND A NEW LIST OF NEWSWIRES FOR EVERYBODY ASAP
Market Rundown:
Good Morning. The dollar is up 60 points. Bonds are marginally stronger. Stocks are mixed and essentially unchanged. Gold is up $11 in the face of USD strength. Silver is very strong up 43 cents. Crude oil is down 40 cents Grains are all up uniformly and Crypto is also tracking stocks at unchanged.
Data:
PCE came in hot indicating consumer spending has not decreased as fast as Powell would like.
UMich- came in as we wrote this:
UMich Final Sentiment 58.6, Exp. 59.5, Last 59.5
Current Conditions 59.7, Exp. 58.7 Expectations 58.0, Exp. 59.9
1 year inflation: 4.7%, Exp. 4.6%, Last 4.6%
5-10 year inflation: 2.7%, Exp. 2.8%, Last 2.8%Overall a softening of inflationary expectations from UMich. Zerohedge just posted this white chart below as well. We added the Gasoline chart. Note how short term inflation expectations ( Gold and Blue) are closely tied to Gasoline.
Short term inflationary expectations are lower while 10 year climb….
Excerpts:
Apple Downgraded
JPM: From QE to QT to quiet QE in UK
Goldman on the Energy Crisis in Germany
S&P AND Gold Technicals
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Monroe Doctrine Says Higher Rates Coming
Powell wants to get the US house in order and part of that means not rescuing others as has been done in the past. Can a crisis in Europe cause us to Pivot more dovishly as many hope? Yes, but the goalpost has certainly been moved on that concept.
We are rebuilding Fortress America and it helps to recall the Monroe doctrine for reference:
The three main concepts of the doctrine—separate spheres of influence for the Americas and Europe, non-colonization, and non-intervention—were designed to signify a clear break between the New World and the autocratic realm of Europe
Everything points to this. From the new Biden Bills spending money on in-sourcing key industries and supply chains, to sanctions, and now to banking policy. In fact, our policies are accelerating things.
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