Ripped From The Headlines, April 27, 2023
US Economy: "Worst Of Both Worlds," Jerome Powell Pranked, Yuan Powers Up - Read, Share, & Subscribe - SherlocExposes.com
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“The US economy was slowing even before the brunt of any credit crunch stemming from the recent bank failures, while inflation accelerated, highlighting the enormous challenge faced by the Federal Reserve.
Gross domestic product rose an annualized 1.1% in the first quarter, notably less than the median forecast for 1.9% in Bloomberg’s survey, Bureau of Economic Analysis data showed Thursday.
The slowdown was largely driven by an inventory drawdown, with an acceleration in consumer spending providing the main impetus for growth. Still, economists warned that momentum slowed as the quarter progressed, in a warning sign for the current quarter.
Frustratingly for the Fed, the central bank’s preferred core gauge of prices, which excludes food and energy, picked up to 4.9% in the January-through-March period, the quickest pace in a year.
‘This morning’s data was the worst of both worlds, with growth down and inflation up,’ said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.”
“Fed Chairman Jerome Powell made several bizarre, if not shocking, admissions during a prank call with two Russians posing as Ukrainian President Volodomyr Zelensky, where they discussed topics ranging from inflation, to the Russian central bank, to joking about having a 'printing press' in the basement and possibly setting up a federal reserve bank in Kiev.
More interesting was Powell's admission, thinking he was speaking with Zelensky, during the call (which reportedly took place in January) that the Fed would hike rates two more times - a topic on which he has been far more circumspect even when giving testimony before Congress.
‘The market is already pricing in two more quarter percentage point rate hikes. We'll look around after we make those two and we'll say should we do any more, and then the question will be how long do we keep rates at this level - and I think we'll keep them there for quite some time,’ said Powell.
Powell also said that the US economy will grow 'at a subdued level,' and that a recession is ‘almost as likely as very slow growth,’ and that it was because the Fed 'raised rates quite a bit,' which he defended as necessary to tame inflation.
‘What we need is a period of slower growth so that the economy can cool off, so the labor market can cool off, so that wages can cool off. That's how inflation comes down. That's the only way we know to bring inflation down. And it can be painful, but we don't know of any painless way for inflation to come down.’
“The yuan became the most widely-used currency for cross-border transactions in China in March, overtaking the dollar for the first time, official data showed, reflecting efforts by Beijing to internationalize the use of the yuan.
Cross-border payments and receipts in yuan rose to a record $549.9 billion in March from $434.5 billion a month earlier, according to Reuters calculation based on data from the State Administration of Foreign Exchange.
The yuan was used in 48.4% of all cross-border transactions, Reuters calculated, while the dollar's share declined to 46.7% from 48.6% a month earlier.
The volume of cross-border transactions covers both the current and capital accounts.
China has long been promoting the use of the yuan to settle cross-border trades as part of an effort to internationalize the use of its currency.
The yuan's use in global trade finance remains low, though it has shown steady increases.”
“Your Lyin’ Eyes Thursday,” Ripped From The Headlines. Things To Ponder:
“Don’t Worry… The Economy is GREAT! We think…”
Hmmm…
Today has been odd when it comes to reporting on the state of the economy…
Here are the 3 different alerts we got this morning:
So…
Which one is it?
Here’s the quote from Bloomberg Economics:
“The US economy is stronger than meets the eye, with consumers continuing to spend on both goods and services. While GDP grew just 1.1% overall in the first quarter, final sales to domestic purchasers rose a much stronger 3.2%, dispelling recessionary fears for now.”
— Eliza Winger, economist
But then, there’s this from the other economists in the article we’ve shared:
“Consumption was weak late in the quarter,” Morgan Stanley’s US economists, led by Ellen Zentner, said in a note. In addition to weather pulling spending forward, less federal support to lower-income households for food expenses also played a role in the tempering of purchases late in the quarter, they wrote.
Zentner and her colleagues said they “expect to see significant slowing into second-quarter 2023 as the cumulative effect of tighter monetary policy as well as banking pressures push growth into negative territory.”
This is a REALLY good time to check into who has a vested interest in what right now…
Know. Your. Foe.
“Oh Yeah, We’re Screwed… But Don’t Tell Anyone, OK?”
Here in the newsroom, we’re asking ourselves how the CHAIR OF THE FEDERAL RESERVE GETS PRANKED.
Yes, this is a real story… the US Federal Government, supposedly the “super secure apparatus,” allowed one of the main faces of the US economy to get on a video call with pranksters, and basically admit that the economy is teetering on the edge of disaster.
How does that even happen?
Well, at least you know that a recession is likely, and there’s no non-painful way to fix things… at least he’s consistent, right?
Just like we said back in December:
Fed Chair Powell is doing the HOKUM DANCE!
Earlier this week we received a few emails (you can email us to: asksherloc@protonmail.com) asking if we felt like we were being to “doom & gloom” on the economy…
Well, today’s response from Federal Reserve Chair Jay Powell is your answer:
'We don't talk about this kind of recession, that kind of a recession. We just make these forecasts," Powell said in a news conference. ‘I wish there were a completely painless way to restore price stability. There isn't, and this is the best we can do.'"
So do we, Mr. Chairman. Maybe… just maybe… if you didn’t have INCREDIBLY BAD FISCIAL DISCIPLINE IN THE FIRST PLACE, THIS WOULDN’T HAVE HAPPENED?
You’ll have to answer for this, Mr. Chairman.
Brace For Impact.
“The Clock Keeps Ticking…”
The default for people who don’t believe that the US dollar could lose its world reserve status is “Most of the world is still using it!”
True…
But why does that number keep going down?
And, why are more and more countries doing the same thing China is doing?
And, why did 19 more counties ask to join BRICS?
Right now, US dollar use is still over 50%…
And going down.
You might want to keep an eye on things.
What Does This Mean?
The economy Your future is hanging in the balance… literally.
The people running things have no clue how to fix the problem… because it’s too big to fix now.
They’ll be using any assets you’ve left in their hands (i.e.: pensions, 401k’s), and rob you blind to try and “fix” the problem.
You’ll be less wealthy, with fewer supplies, and less free to speak your mind.
Those aren’t good things.
Why should I care?
There’s so much to unpack…
Your wealth…
Your legacy…
Anything you plan to leave for future generations…
Getting the basics to live…
All of these things are teetering on the edge.
You should REALLY care.
What Should I Do?
Start thinking about the basics that people will need, and look at those things as potential avenues to protect yourself and as an investment.
Do you know why Berkshire Hathaway’s stock is so expensive?
They touch 90% of your life every day, and you don’t even realize it. That’s inflation/deflation/recession/depression insurance. You’ll still need toilet paper and toothpaste.
You should also tell as many people as you can about what’s happening. Don’t leave people behind, while we still have a window to help them.
A quick way to do that: Share this newsletter… heck, take from it, and do your own. We give you permission…
Take the time to learn more about Parallel Economies, and find alternatives to the things you use today… food, money, and transportation.
GET MOVING ASAP.
James Wesley, Rawles, publisher of SurvivalBlog.com has put together a “bookshelf” list of key things you should have. CLICK HERE to access the list.
Plus a recap of the 50 things you should have handy to barter.
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