US CPI Thurs Jan 12
Tomorrow is a very important day IMO
Calling CPI numbers has been a crapshoot. If the US comes in at the expected level of 6.5-6.7, or even better, they are doing a better job of dealing with inflation than Canada. It would also show that high interest rates is not the only tool, which we all know. It should put pressure on Canada to do more than just rely on Tiff to crank up rates, which should end this month with another .25, IMO they don’t need to raise anymore, not even the .25. IMO, raising interest rates at this pace is just a lazy way to deal with a complicated problem.
Fantastic interview on Kitco with John Cochrane and always entertaining old Steve Hanke. Often Kitco has guests just trying to sell their funds, often always wrong with calls etc, but this interview is worth the watch. Both economists blame government (no surprise) and history has proven you don’t need interest rates above inflation rates, in fact you can have no inflation with zero interest rates if the money supply, and other needed goods are in check with supply/demand. https://www.youtube.com/watch?v=Vq4zRZqK1vA&t=3453s