CPI increased 0.5% month-over-month in January…Following a 0.4% increase in December. What does it mean – Inflation readings moved in the wrong direction for the Fed’s policy comfort, which will keep the market on edge about the Fed. Inflation is not transitory…The FOMC minutes suggest the Fed will remain on hold as inflation persists. What does it mean – The Fed is in no hurry to lower rates due to numbers from January and may even keep the Fed second guessing itself for the foreseeable future. Remember, the printing press is still working overtime. Eggs…The cost is up nearly 10-fold in three years. What does it mean – A dozen eggs now cost the average American $8.23 and over $9 in California according to the Epoch Times article. In 2022 the national average for a dozen eggs was $0.89 and in 2014 a dozen eggs cost $0.59. According to Jada Thompson, associate professor of agricultural economics and agribusiness at the University of Arkansas. Yet, according to Thompson, “by the beginning of February, the size of the egg-laying flock had dropped by about 7 percent compared with the number of birds in the field at the end of 2021.” While demand is up, and we lost 7% of the production due to the Bird Flu, we could see the “Fauci effect” take hold on our food supply as the very people in the FDA and NIH who are supposed to protect us rush to get patents on vaccines to vaccinate our food supply. Yes, don’t worry, BIG PHARMA to the rescue. I will bet we are going to see an epic fight to vaccinate chickens, turkeys, and every other farm animal costing consumer and taxpayer untold trillions if big pharma gets its way. Better speak out. If the FDA and NIH are allowed to continue to be rewarded with fees from patents that they are supposed to oversee and if things don’t change in DC prepare for $20 a dozen. Not to mention, what will vaccinating our food supply really do to it? What will it do to our children and future generations to come? Eventually vaccines will be on the table and there will be nothing organic once those hit the food supply. Retail sales declined 0.9% month-over-month in January…After an upwardly revised 0.7% increase (from 0.4%) in December retail sales falls. What does it mean – While there was a notable pullback in spending on goods and services in January, one could chalk it up to the post-holiday hangover. It could just be a tired consumer after the holidays. But one has to ask, will that fatigue persist because of rising food prices due to the bird flu? Will the consumer hit the credit cards as folks start to plan what they will do once they get their tax refund. Consumer delinquency rates are grinding higher…This is not good. As of the end of January we are getting back to near all-time highs for consumer delinquencies. What does it mean – While peaking in 2010 and then again in 2021, we have seen 90-day delinquencies up nearly 40% over the last 24 months. Maybe folks should pay off their credit card with their tax refund.
