U.S. Consumer Prices Increased in March by Most Since 2012, But Core Inflation Still Only 1.6% YoY (Is Bitcoin The New Inflation Hedge?)

(Bloomberg) — U.S. consumer prices climbed in March by the most since 2012, adding to evidence of budding inflationary pressures as the economy reopens and demand strengthens.

The consumer price index increased 0.6% from the prior month after a 0.4% gain in February, according to Labor Department data Tuesday. A jump in the cost of gasoline accounted for almost half the overall March advance. The median estimate in a Bloomberg survey of economists called for a 0.5% rise.

Excluding volatile food and energy components, the so-called core CPI increased 0.3% from a month earlier, the most in seven months and reflecting rising rents and auto insurance.

CPI YoY rose 2.6% while CORE CPI YoY rose only 1.6%. Owners Equivalent Rent of Residences remains at 2% YoY.

Once again, lower and middle income households consumer larger proportions of food and energy in their budgets than high income households. Yet The Federal Reserves focuses on what impacts the higher-income households.

The Covid epidemic led to a slump in CORE inflation, but inflation has picked up since then. But not much.

It looks like Bitcoin is acting as an inflation hedge while gold has not.

If the Fed REALLY wanted inflation, all they have to do is revert to earlier methods of calculation. Then we would like to see a rush to gold and silver again.

Here is this AM reaction to the inflation report. Bitcoin surged overnight, but gold surged on the CPI report.

Random Length Lumber Futures are up 74% since Biden’s inauguration.

I wonder if steaks at Charles Mulligan’s Steak House have increased in price?

Fear! Bitcoin $60,000 And Holding As CS Fear Barometer Plunges

Cryptocurrency Bitcoin finally hit $60,000 and is holding! Just like in the movie Stargate with Kurt Russell.

Of course, the CS Fear Barometer is falling thanks to massive Fed money printing and balance sheet expansion.


The CS Fear Barometer measures investor sentiment for 3-month investment horizons by pricing a
zero-cost collar. The collar is implemented by the selling of a 10% OTM SPX call option and using
the proceeds to buy an OTM put. The CSFB level represents how far out-of-the-money that SPX put
is. The higher the level, the greater the fear.

Bitcoin Breaks $61,000 .. Then Retreats, VIX Volatility Index Crushed By Fed Money Printing

The Biden epic spending spree and The Federal Reserve’s epic money printing has resulted in a host of outcomes. First, cryptocurrency Bitcoin finally hit $61,000 today before backing-off.

The massive increase in The Fed’s money printing (M2) has stimulated stock market growth (S&P500) along with cryptocurrencies Bitcoin and Ethereum. The out-of-control money printing has essentially killed-off stock market volatility (VIX).

Biden and Powell are Natural Born (Volatility) Killers.

Reversal Of Fortune! Gold Rises As Bitcoin And Ethereum Fall Along With The US Dollar, Hindenburg Omen Nonexistent With Fed Money Pumping

It is a slow economic news and equity markets are flat. But we are seeing activity in cryptocurrencies (Bitcoin and Ethereum) and Gold. Gold is up and Bitcoin/Ethereum are down.

Is this a reversal of the trend over the last year?

And the US Dollar is going down.

And the infamous Hindenburg Omen is nowhere in sight, thanks to The Fed.

The German airship Hindenburg flying over Wall Street.

Topsy-Turfy! Fed’s Assets At $7.7 Trillion, Up $3.5 Trillion in 13 months, 10Y T-Yield UP, Gold Down, Bitcoin Up

Financial markets are topsy-turfy after the Covid panademic struck.

The Federal Reserve rode to the rescue and increased their balance sheet by $3.5 trillion in just 13 months (white line). While some would think that the US Treasury 10-year yield would fall, … it has been going up from 0.543% on March 9, 2020 to 1.726% today (blue line).

Gold initially shot up in price following The Fed’s massive asset purchases (gold line), but has tapered off. While Bitcoin (electric green line) has risen to $57,664.77.

And the S&P500 index is soaring with Fed stimulus.

Gold is up, the Dollar is down.

With the Biden/Pelosi multi-trillion dollar spending spree under way, look for The Fed’s balance sheet to absorb much of the Biden/Pelosi spending spree.

Ain’t that a lot of …

Ethereum Skyrockets As Bitcoin Hits A Reflecting Barrier At $60,000 (Home Prices Growing Like Ethereum?)

The cryptocurrency Ethereum is skyrocketing as its competitor Bitcoin seems to be hitting a reflecting at $60,000.

Yes, Ethereum is skyrocketing, but so are home prices along with money growth.

Is housing the new cryptocurrency? Or are asset prices blowing out of control?