Clearly, I am at odds with the prevailing wisdom of the bulls who love to use every PCE, CPI, and PPI to scream for the rate cut they “deserve” “need” “want”. Not only is my opinion different than the permabulls, but it’s different than the Fed. Consider today’s statement from Dallas Fed President Richard Fisher, “The question was really the trade-off…on the economic growth side, given the fact that we had seen inflation trending lower, by whatever means you measure…and in expectations… It was the considered judgment of the (Federal Open Market) Committee that we had some wiggle room.”

As you know (or should know), I believe inflation has been growing for the past few years and not declining per Mr. Fisher. So when he says by “whatever means you measure” he is obviously not using my measuring stick. Or for that matter, he seems to be pretending that there is no measure or no economist that is seeing inflation that he does not see. That is the dangerous part. If the Fed is so convinced that we really do have low inflation and if they believe the PCE or CPI is calculating the true pricing situation - well - then we are screwed.

Hearing that the FOMC thinks we have “wiggle room” because inflation is low and trending lower just shows how out of touch my commentary is with the wisdom of the Fed and many bulls. I am not wiggling, I am squirming with an ever increasing fear that I am so wrong. Because I am experiencing significant inflation in almost every aspect of my life and the smart guys that can and should do something about it, just see “wiggle room.” So feel free to disregard my stupidity or ignorance on the inflation question. If your life is not getting as expensive as mine is, I am happy for you and envious that you have a lot of wiggle room where I have cramped spaces.

We had inflation before the Fed cut the Discount Rate and the Fed Funds Rate.   Since last Tuesday, the markets in the 10-year Treasuries and Gold and Oil and general commodities and the US Dollar are all responding to fears of inflation.  I don’t see the wiggle room.  Fortunately for all the lovers of interest rate cuts, I have no vote.