“Reflation” Is Officially Dead: Core CPI Tumbles For The First Time In Over Seven Years

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Zero Hedge: The reflation trade is officially over.

At the same time that retail sales posted the worst 2 month drop in 2 years, CPI – the bedrock behind the Fed’s rate hiking intentions. The number was so bad, all 79 economist estimates missed the number (predicting a -0.2% low).

Now we look forward for Wall Street to “U-turn” alongside Trump, and explain how it was only kidding about rising rates being good for risk assets, and what it really meant was that only QE4 can fix the economy, as usual.

Opinion: Smoke and mirrors. The Federal Reserve, along with its EU counterpart the European Central Bank (ECU), are modeling Japan: deflation.

For some reason, neither one can fathom why their respective economies remain comatose despite massive intervention.

You would think that Yellen/Draghi would learn from Japan’s 25-year losing battle with deflation. Japan’s massive stimulus caused so much debt that it is now over 200% of GDP.

You would think that intelligent people would have figured out that socialism, out of control spending, and a mountain of debt and money printing schemes would turn any government into a reverse Robin Hood, making the wealthy wealthier and the poor poorer.

You would also think somebody would see a connection to Revelation 6:5-6?

But for 3 years we have been hearing how Janet Yellen and company are going to continue to raise interest rates based on data. Reality is telling us that the data is pointing to a weakened economy that cannot handle higher interest rates.

Yesterday, first quarter GDP was revised downward to a pathetic .5%.

We have been saying since QE3 (money-printing) ended in 2013, that QE4 would be on the way.

One chorus of ‘she’ll be comin’ round the mountain’; maestro if you please …

She’ll be coming round the mountain
When she comes

(Toot, toot!)

She’ll be coming round the mountain
When she comes

(Toot, toot!)

She’ll be coming round the mountain,
She’ll be coming round the mountain,
She’ll be coming round the mountain
When she comes

(Toot, toot!)