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HEALTH, WEALTH, AND HAPPINESS |
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"All possession is based on consciousness. All gain is the result of an accumulative consciousness.” - Charles Haanel, The Master Key System
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Hey Everyone,
Good news for the U.S. economy was released today.
The monthly Consumer Price Index (CPI) figures came out this morning, and the results weren't too bad.
In the month of July, the The Consumer Price Index for All Urban Consumers (CPI-U) rose by 0.5% on a seasonally adjusted basis.
This figure was right on par with the consensus prediction made by economists participating in a Dow Jones poll.
Though half a percent inflation in a month is hardly considered low by any stretch of the imagination, given the amount of money that's been printed lately, U.S. economists and Federal Reserve policymakers are likely breathing a huge sigh of relief.
Even the core index, which excludes the prices of food and energy, rose 4.3% for the 12 months through July, compared to 4.5% for the same period through June. |
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You might think that less-than-huge inflation data might weigh down on bitcoin, but we can see the digital currency inching higher today, reaching heights not seen since mid-May, and further giving strength to the 200-day moving average as a potential support level.
The thing is, as we've shown before, bitcoin isn't really a hedge against inflation.
Its price doesn't react to inflation data like the rest of the market does, at least not in real time. However, given the chart above, I can see how people might not want to hold dollars in a bank account right now. |
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Slippery slope
One area where inflation is being felt particularly hard is at the pump, since gasoline prices recently reached their highest since October 2014.
U.S. oil Inventories dropped last month, prompting some unusual, yet seemingly effective intervention from the Biden administration. |
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It is a bit silly that after discouraging American investment into the oil industry and blocking key infrastructure that would help the U.S. import cheaper oil, President Joe Biden is now asking OPEC+ to increase their production to bring prices down.
Sure, they may decide to comply. Saudi Arabia, OPEC's largest member, is usually pretty happy ramping up output.
The thing is that Saudi Crown Prince Mohammed bin Salman really can't do much to reduce the amount of dollars in the world. |
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Going back to Cali
Please note that I'm flying back to my hometown in California in just a few hours, so I will be in transit for a couple of days.
I'll do my best to stay active on Twitter during this time, but my regular newsletter will unfortunately be offline for the rest of the week.
We will of course resume as usual on Monday, Aug. 16.
Wishing you all an amazing rest of the week and a fantastic weekend ahead!
Best regards, |
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Mati Greenspan Analysis, Advisory, Money Management |
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