A couple weeks ago in Inflation Is Slowing, I noted the first tentative signs of disinflation since the deflationary crash associated with the coronavirus outbreak. The latest FDI confirms the trend change.
Again, consumer prices are badly lagging inflation indicators, so this does not imply imminent relief on that front. But so long as the FDI doesn’t revert into downtrend, the pressure is off and over time relief will filter into consumer price inflation.
7 thoughts on “FDI Update”
Bold call. The guys at Hedgeye, who have a whole team working on these things, and who are often contrarian to mainstream wall street propaganda put out by CNN and Cramer types, agree with you.
Worth noting that it’s contingent on central banks following through on spoken intent. The about face from the Fed is about as close as it gets to “oops, we goofed”. But if Powell & Company lose their nerve and fail to raise rates as the bond market has already done, the FDI could resume its downward trend, in which case any hope for relief on consumer prices would perish along with it.
It’s a bit ironic … so long as Powell et al insisted surging inflation was transient, there was no hope of it being so. Now that they’ve recanted, the prospects of transience are looking better. Clearly a case of the first step in solving a problem being admitting that there is one.
Where they erred was in assuming inflation would abate while the policies causing it remained in place. It was only ever going to be as transient as the policies causing it.
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Curiosity killed the cat.
The early bird gets the worm.
Examples of Aphorisms for Success
Michael Corleone from The Godfather II disagreed with that.
Honesty is the best policy.
The origins of this saying are open for debate, but it’s primarily attributed to Abraham Lincoln.
Not so much.
Aphoristic statements also appear in everyday life, such as daily speeches made by politicians and leaders.
They’re written in countless books and passed down as folk wisdom.
Repeat after me.
This famous motto highlights the truism that life is full of ups and downs.
It’s become one of the most viral memes on the internet.
Life is too short to surround yourself with toxic people.
Want a few more.
Why is this stuff important.
Not only that, but you can use aphorisms in your writing to summarize your central theme.
It’s one of the most recognized aphoristic statements today.
We’ve all probably had to learn that the hard way.
Interestingly enough, this saying was initially intended as a compliment.
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And get this.
Today, I’ll define aphorism and show you how these handy little sayings make your writing more memorable.
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It originally read, Count not they chickens that unhatched be…
There is no try.
Yup, you guessed it.
The complete quote was, A Jack of all trades and master of none, but oftentimes better than a master of one.
This quote came from Wales, first appearing in an 1866 publication.
Your stories can benefit from this method too.
What is an Aphorism.
Both sayings highlight the benefits of waking up early.