ZeroHedge/Michael Every/4-14-2022
“Details matter. Or they should. In reality the dirty secret in markets is that nobody actually pays attention to them. … [A] case in point is US CPI, which you would have to be getting an 8% yield on a gold coin to keep up with. US headline inflation hit 8.5% y/y yesterday, a tick higher than expected, but the market focus was on the 0.3% m/m core print, which was 2 ticks lower than consensus. Along with the recent dip in oil prices, the sudden view was again that we have seen ‘peak inflation’. Happy days!”
USAGOLD note: That reference to the required yield on gold coins to keep up with inflation is a classic – and one that goes straight to the heart of the problem the Fed is up against. Peak inflation? “[T]oday we have entrenched inflation,” writes Every, “a Fed prepared to ‘meticulously’ ensure it becomes unentrenched, and a geopolitical backdrop that favors decoupling [important trade relationships], which cannot be anything other than inflationary.” Rather than paying attention to detail and making an objective assessment, the tendency even among seasoned hedge fund operators is to run with the crowd instead.
