Inflation Acceleration??

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Inflation acceleration. Yeah, consumer price index up 2.7%. Yeah, the various different pundits out there that some are saying it’s terrible. Some are the other side. Well, it could have been much, much worse summer saying, well, you know, we’re kind of stuck in a bad spot. And, you know, we can’t get down to that 2 % lower than 2 % level. Okay. And then we are, you know, the

obviously the issue of tariffs and what’s going on. Let’s go through some of the numbers. Okay, but before we do that, this is important. Okay, you need to understand what inflation is. I’m gonna take you back in time to Biden was president and we had the one of the original outbreaks of bird flu, avian flu, and they had to go kill millions of chickens, millions of chickens.

talking about this on the program, were cracking jokes about it, because people were saying, all right, it’s inflationary, look at the price of eggs, it’s inflation. And I’m like, wait a second, okay, Jay Powell, Jay Powell, and the members of the Fed are not gonna go around putting masks on chickens. They’re not gonna do that. That’s not what inflation is. Inflation is solely about money.

It’s a monetary issue. The Fed prints more money. We debase the currency. The value of your dollar goes down. That is inflation. You see, everybody on TV, everybody on TV likes to equate other things with the price going, that must be inflationary. Again, you can talk about supply and demand. Okay, if you print too much money,

and you’ve got too much money chasing too few goods, that’s gonna drive prices up. That’s a part of it. But prices going up due to…

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birds getting the flu. That is not inflationary. And technically, technically when you’re talking about tariffs, it’s the same thing. Now, let’s go through some of the numbers, shall we? Okay, we got 2.7%, core inflation, core inflation up 2.9%.

the same time last year, okay, up from 2.9%. Again, over the course of the month, prices up 0.3. Again, you know, they’re talking about this to pay, again, you go to the various different publications. And that’s what I do. Some are saying, prices are up due to tariffs. Well, prices are up without a doubt, due to tariffs. But that is not inflation. That’s tax.

It’s completely different. And that’s one of the things I kind of want to get, you know, we talked about this briefly on the program. One things you got to get your arms around at this point. I just come to accept it. I’m at the point of acceptance right now. It’s just what are we going to pay? What are we going to end up paying? It’s as simple as that. Government needs greater revenue, I guess. I mean, take a look at our deficits.

rather than do it via income taxes, they’re going to do it via tariffs. However, that’s not inflation. Food prices were up 0.3 % in June, 3 % higher on an annual basis. Food at home index is up 2.4 % on an annual basis. Food away from home is up to 3.8 on an annual basis. Eggs are down because…

The chickens are reproducing after the whole avian flu outbreak, which left prices up. Okay. There’s still, still up, you know, 27 % year over year. That’s, that’s quite a bump. Energy prices up, housing prices are up. Over the last year, the shelter index increased over 3.8%. And again, that’s a bit of a disconnect, quite frankly, especially with the amount of homes that are on the market at this point.

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and time. it’s not tariffs are not inflationary. You need to understand that that that’s again, it’s one of those things. I know we’ve talked about this before on the program. It is it’s a tax. It’s a tax. That’s all it is. Okay. Look at it that way. The value of your dollar is going to continue to drop. If we have to continue to print money to pay

our bills. That is completely separate from tariffs while we’re on tariffs. Okay. This is annoying. Quite frankly, you’ve got various different Republicans going out there. And again, I understand what they’re doing. They’re talking about wow. Wow. Treasury report for June man was awesome.

The government posted a $27 billion surplus!

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Okay. Treasury’s financial report showed that we collected $27 billion in tariffs, custom duties in June, that’s up from 6 billion the year before. Total monthly receipts, $526 billion, while government expenditures were $499 billion.

Voila, my God, we got a balanced monthly budget. Scott Bessent out there. yeah, another promise made, another promise kept.

Scott, come on man, I get it, I get it, you’re politician, you’re Treasury Secretary, but stop insulting our intelligence, please. Stop, okay? June, okay, I’m a business owner. June is one of the largest months of the year as far as receipts are concerned to the Treasury. Companies and individuals file their quarterly estimates in June before Biden went berserk.

June would, you know, again, if was last one was 2016, you’d run surpluses in the month of June. But what is it? What does it matter? What does it matter if one month you run a surplus, but the rest of the months you are deep in the red? Anyway, you want to go back to October. First nine months, first nine months, fiscal 2025.

We got a $1.3 trillion deficit. Outlays are running $318 billion higher than the year prior. And actually, that number would be higher. This is according to the Wall Street Journal if it wasn’t for some funky accounting that was going on. The budget deficit is still growing. Still growing. And this is despite the fact that tariff revenue was up and individual income taxes.

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are up. Individual income tax revenue was $51 billion higher in June than the same month last year. That’s a 28 % increase and it’s up $174 billion year over year. Corporate tax revenue on the other hand is lower by $13 billion in June, $26 billion year to date and one could say well you know maybe maybe the margins

Maybe corporate margins are getting hit by tariffs. They’re not paying as much in taxes. Tariffs are a small share of federal revenue. So far this year, $108 billion. Again, maybe over $300 billion over the course of this year. And again, that’s not chump change, okay? It’s not. But let’s not gaslight the entire public and tell them that that’s going to come anywhere close to balancing

budget. It is what it is. It’s another source of revenue. It’s tax. Interesting as well on the tariff front. The Port of Los Angeles. Port of Los Angeles record container traffic. Record container traffic through June. Why? Well, they want their front running, their front running those what’s going to happen with China. Remember China was at 145, was it 145?

Percent and then yeah, he got it down to 45 But I think that those tariffs are going back into effect if I’m not mistaken for China I think it’s mid-june so a lot of companies out there are trying it’s playing a game of beat the tariffs and get as much into the United States as possible before August 1st and I think with China, it’s the middle of August Again, we’re gonna see where this thing all plays out. It’s now

Again, it’s just a part of life here in the United States. It’s a tax that we’re all gonna pay. Watchdogonwallstreet.com.