Today the Labor Department reported that the consumer price index once again demonstrates that the Federal Reserve simply cannot hit its inflation target of 2%.
So what does this mean?
Simple: dollar bulls will continue to get crushed for the foreseeable future moreover, the general public will also be harmed.
It strikes me as bizarre every time I hear from the mainstream media that the "Fed is missing their inflation targets," yet the mainstream media continues to push the narrative of "economic recovery."
Do they really believe people are that stupid?
It's just so simple. The root cause as to why the federal reserve cannot hit their inflation target is because there was no money velocity! (It is actually near historic lows), therefore the US economy is flatlining.
If people need any more proof that the US economy is in a lot of trouble, all you need to look at is the retail sector which continues to get hammered.
Keep in mind that the US economy is dependent, more than 70%, on consumer spending.
What we can all be sure of, is the Federal Reserve will to continue to push the purchasing power of the dollar lower therefore directly harming consumers-which will eventually hit GDP as well.
Gregory Mannarino @marketreport
