1052 sats \ 8 replies \ @TomK 13 Feb \ on: That stubborn, pesky inflation econ
According to the data and analyses of 'Trueflation', the CPI data on which the Fed bases its policy is lagging significantly behind.
Interesting. Found this in one of their blogs on their website:
Backed by Coinbase and Chainlink, Truflation is a leading DRP (definite reference point) for economic truth that is powering the tokenization of Real World Assets with its independent, transparent, and real-time financial data. Tracking over 13 million items, Truflation’s censorship-resistant and accessible data indexes provide the necessary data infrastructure to bring about systemic advancements in the DeFi economy, empowering dApps like DEXs to open limitless markets. From speculating on prices of orange juice and uranium to enabling BTC-denominated oil, gas, and corn prices, Truflation provides the key to unlocking a diverse array of financial markets and instruments in the Web3 world.
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That is incredible.
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trueflation does indeed apply an interesting concept: https://truflation.com/methodology
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So how would you interpret this, Tom?
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we have to assume that the Fed has all the data at its disposal, i.e. it also knows the truflation interpretation. but it is currently not in its interest to let the stock market run too hot, although in my opinion this is almost inevitable for the next few months. therefore, data is probably rather overstated at the moment. then all this has to be seen in the context of currency competition with the eurozone. we have a chicken game ahead of us here: whoever lowers first, loses.
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I guess we also have to take into account the building pressure regarding the presidential election, though.
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as far as the biden administration and the exorbitant debt behavior is concerned, i'm not sure exactly what role J Powell and the Fed are playing here. so far, he has made life difficult for biden in any case. so far, Janet yellen has also been lucky that the European Central Bank in particular has made massive purchases of us government bonds in order to keep interest rates lower in the US and prevent capital flight from the eurozone.
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Food is the best gauge of inflation
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