Hello for the rebel capitalists, hope you're well.

So my good buddy Peter Schiff has been saying since day one

that the Fed isn't going to be able to tame inflation

until they take rates to where they're positive in real terms.

So if inflation is running at 7.7, that means the Fed would have to take fed funds up to 8%, let's say in order to bring inflation back to its knees to tame

inflation as they say now this is not my base case as you guys know. I'm kind of in the dis-inflation camp at least for the next and I'll call it into Q1 or Q2 of 2023, but we just had an inflation report come out today.

Now this is not the CPI, this is the PPI numbers, but they surprise to to the upside indicating that maybe we might not be in for as much

disinflation as George Gamin thought.

Maybe, and I'm open being wrong of course. So let's dive into the

story and check out what is going on with inflation. Here we go. Headline wholesale prices rose 0.3% in November. More than expected

despite hopes that inflation is cooling.

And before I did this story, believe it or not,

I actually did a little bit of research.

And I looked at the 10-year Treasury,

and the 10-year Treasury is actually up as far as the

yield on this news. So it's not just the market, you know, that he's talking heads

or analysts being surprised, it's actually the bond market and the bond market is what I personally like to pay attention to.

So the PPI or producer price index, a measure of what companies get for their products in the pipeline.

So this is the input costs to what the retail investor, the products the retail investor

buys, increased 0.3% for the month and 7.4% from a year ago, a 38% surge

in wholesale vegetable prices help push up the cost index by 3.3% offsetting an identical 3.3% decline in energy costs.

Markets now will turn their attention to the more closely watched

...