Why Inflation is Killing Kamala

Wanna piss off an entire country? [Morning Reckoning] October 24, 2024 [WEBSITE]( | [UNSUBSCRIBE]( Why Inflation is Killing Kamala Asti, Northern Italy October 24, 2024 [Sean Ring] SEAN RING Good morning Reader, Inflation is so universally despised that its mere mention evokes fear, uncertainty, and, most importantly, anger. Wanna piss off an entire country? Make things expensive there. Beyond its textbook definition, inflation lights up deep emotional, social, and psychological layers that explain why people hate it so much. Let’s be honest. Kamala would be having a much easier time if her boss had not opened the fiscal spigot to the point where many couldn’t afford to buy the necessities. Between her interviews, speeches, and town halls, Kamala is getting skewered even by her friends. CNN is the latest outlet to hammer her. Her Townhall Kamala repeatedly hammered Trump, but CNN was unconcerned about that. If Trump wins, Harris said, “He’s going to sit there, unstable and unhinged, plotting his revenge, plotting his retribution, creating an enemies list.” If that isn’t the biggest reason to vote for Trump, I don’t know what is. She said, “My administration will not be a continuation of the Biden administration,” Harris said. “I bring to this role my own ideas and my own experience. I represent a new generation of leadership on a number of issues and believe that we have to actually take new approaches.” Uh, Kamala is 59 years old and previously said she wouldn’t change anything on The View. “I traveled this state and others with Liz Cheney. She has endorsed me.” “Dick Cheney is voting for me. [Over 400 members of previous members of] Republican administrations have endorsed my candidacy, and the reason why – among them is a legitimate fear based on Donald Trump’s words and actions, that he will not obey an oath to support and defend the Constitution of the United States.” The more Kamala says things like that, the more people vote for Trump. I have no idea why she’s trotting out anyone whose surname is Cheney. But her biggest blunder was on the border. When Anderson Cooper asked her if she wanted to “build the wall,” Kamala replied, “I want to strengthen our border.” When Cooper pressed her, she decided to make fun of Trump, to no avail. From CNN’s own fact-checking team: At CNN’s town hall with Kamala Harris on Wednesday, the vice president claimed that only 2% of the US-Mexico border wall was built during former President Donald Trump’s administration. “How much of that wall did he build? I think the last number I saw was about 2%,” she said. Facts First: This claim is exaggerated. According to a 2021 report from the US Customers and Border Protection and the Army Corps of Engineers, nearly 52 miles of “new primary wall” and 33 miles of “new secondary wall” were built during the Trump presidency. More than 370 miles of broken-down or outdated primary and secondary wall was also replaced. During his campaign and throughout his presidency, Trump pledged to build a wall with parameters evolving from 1,000 miles to over 500 miles. Using the “new primary wall” numbers from the 2021 report, one could estimate that 5.2% of his 1,000-mile promise was met or 10.4% of his 500-mile goal was completed. Harris’ running mate, Gov. Tim Walz, made a similar claim earlier this month at the CBS vice presidential debate. The entire US-Mexico border is roughly 2,000 miles. The 52 miles of new primary wall would amount to 2.6% of that total length, but as CNN has previously reported, Trump had pledged to build more wall, not a new wall across the entire southern border. Wow. Even CNN isn’t carrying her water. And why is that? I genuinely think it’s because America blames her, or at least her part in the Biden Administration, for the inflation they’ve suffered. [[Revealed] Is A Starlink IPO Coming In 2024?]( Take a look at this tweet from Musk pictured here.. [Click here to learn more]( Could this be a sign that a Starlink IPO is set for the second half of 2024? According to one top venture capitalist, the answer is YES! And for the first time ever, you have the rare chance to profit pre-IPO… BEFORE Starlink goes public. [Click here now for all of the details.]( [LEARN MORE]( The Erosion of Purchasing Power I vividly remember my grandfather telling me his movie popcorn was “only 5 cents a bag!” Mine cost $5 a bag at the time. I remember thinking, “Well, my popcorn must be much better…” How naive I was! The popcorn wasn’t better or worth more. The stuff I used to buy the popcorn - the dollar - was worth less. At the heart of why inflation is so deeply unpopular is its erosion of purchasing power. Even now, while the inflation rate has fallen, prices are still high! For the average consumer, inflation means that a fixed amount of money buys fewer goods and services over time. For old folks on a fixed income, it can mean a miserable, miserly retirement. Whether at the supermarket, the gas station, or online, rising prices chip away at your wallet, sometimes subtly, other times dramatically. We, The People, generally expect - and demand - from The State a steady, predictable relationship between our income and spending ability. But when inflation accelerates, it distorts this balance. Suddenly, household budgets become pressured as wages fail to keep pace with rising costs. Essentials like food, fuel, and housing become prohibitively expensive. The Hidden Tax We refer to inflation as a "hidden tax," and for good reason. When inflation rises, the real value of money decreases. Governments benefit from inflation, particularly if they carry large debt loads, because it allows them to repay those debts with cheaper money. But for everyday people, inflation is a stealthy force that eats away at savings, reducing the value of their hard-earned wealth without any formal tax increase. Inflation feels particularly invasive when wages don’t rise. You’re still working the same hours, but your paycheck buys you less and less each month. Over time, inflation diminishes the returns on savings accounts, making it harder for people to accumulate wealth or plan for future expenses like education or retirement. What compounds this feeling is that inflation isn't as obvious, unlike a direct tax. There’s at least a transparent relationship with taxes—you know how much you’re being taxed and can make decisions accordingly. Conversely, inflation is less tangible but more damaging to your financial health. People feel cheated when they realize that the money they’ve saved or the fixed wages they’ve been earning are worth significantly less in real terms. The Psychology of Uncertainty People hate inflation not just because of what it does to prices but also because of its uncertainty. Stable prices allow people to plan for the future with confidence. But inflation injects an element of unpredictability into everyday life. When prices rise at unpredictable rates, it becomes difficult to budget, save, and make long-term decisions. Think about someone planning to buy a home, pay for a child’s education, or save for retirement. Inflation throws these plans into disarray. Today’s savings goal might fall short in a few years if inflation continues to eat away at the purchasing power of their savings. This uncertainty also affects businesses, which pass on higher costs to their customers. Companies facing higher input costs must decide whether to absorb them (reducing their profitability) or pass them on through higher prices. Both scenarios can lead to job losses, reduced wages, or further price increases, creating a feedback loop perpetuating inflation’s grip on the economy. The Destruction of Trust When inflation runs high, it erodes trust in institutions—particularly governments and central banks, who frankly deserve the downgrade. People depend on these institutions to maintain economic stability. When the Fed, for instance, gets behind the curve, it signals a failure on their part. Take the hyperinflation experienced by countries like Venezuela or Zimbabwe. In these instances, the government’s mishandling of the economy resulted in extreme price increases, and people lost faith in the currency and the institutions meant to safeguard the economy. Prolonged inflation, especially in more developed economies, makes people question policymakers' competence. The recent inflationary surge following the COVID-19 pandemic, driven by supply chain disruptions, government spending, and central bank monetary policies, has led to widespread criticism. People rightly expect the Federal Reserve to maintain price stability. When it fails, trust erodes, and it’s incredibly hard to rebuild quickly, if at all. Wrap Up It’s no wonder inflation is so universally despised. At its core, inflation strikes at some of the most fundamental aspects of financial well-being: purchasing power, savings, and the ability to plan for the future. It acts as a hidden tax, erodes trust in institutions, and exacerbates inequality by hitting the most vulnerable hardest. For most people, inflation represents a loss of control over their finances, plans, and economic future. It creates a feeling of instability and insecurity that transcends economic theory and hits everyday life. Under Biden/Harris, inflation changed America from a middle-class paradise to a middle-class nightmare. Because of this, Kamala is having a helluva time shaking it off. All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com X (formerly Twitter): [@seaniechaos]( [Nearing Retirement? Claim This Exclusive $1 Book Offer Right Away!]( [Click here to learn more]( “The Banker” is a hedge fund titan who spent years helping America’s richest families grow even richer. [And today, for the first time ever, he wants to send you his new book – where you’ll find 36 of his never-before-revealed income and wealth generating secrets](. If the potential at steady, predictable income (as well the chance at a few nice, quick windfalls) interests you, then I urge you to act right away. [== > Click here now to claim this exclusive $1 book offer](. [LEARN MORE]( In Case You Missed It… First Gold, Then… Greg Guenthner, Editor [Greg Guenthner] GREG GUENTHNER Good Morning Reader, All eyes are on gold’s record-breaking run. The gold bull is in full swing this month as the yellow metal extends to new highs… again. Gold has been on an absolute tear since breaking out above $2,500 for the first time ever back in September, jumping almost double-digits on its run above $2,700. I’ve recently discussed how the financial media was largely ignoring gold’s impressive rally to new highs. But that’s starting to change… In fact, the gold rally is making the leap from the financial section to the front page. ABC News even ran a quick gold explainer late last week as futures topped $2,700 for the first time, listing election uncertainties and conflicts in the Middle East as key drivers of the rally. I think it’s safe to say enthusiasm is building around these precious metals for the first time since gold extended beyond $2,000 at the start of the second quarter. Now, we’re beginning to see follow-through into silver and the mining stocks. Almost everything in the precious metals space is enjoying its day in the sun. Longer-term, gold has a bright future. But it’s due for a break soon, whether that means a pullback or some sideways consolidation. The cat’s out of the bag! Everyone and their third cousin is now hip to gold’s explosive potential. Thankfully, gold isn’t the only game in town. In fact, we’re seeing some other key breakouts taking shape across the metals space. Tracking the Other Metals Boom Back in the early spring, we touched on some of the metals other than gold that were starting to break out. Dr. Copper was printing new all-time highs. It felt like the commodity bull run was ready to explode, dragging stocks higher with it. At the time, copper was successfully holding its $5 breakout and industry pure plays were exhibiting impressive momentum. Southern Copper Corp. (SCCO) was tagging new highs to begin the second quarter and had already racked up year-to-date gains of 25%. But those dreams of a bigger breakout were short-lived. Copper failed to hold above its 2021-2022 highs and quickly lost that magical $5 level. Instead of consolidating its multi-week rally, everything began to fall apart. It was a rough summer to be a copper bull. By mid-August, the metal had coughed up all of its earlier gains, dropping more than 20% from its peak Sellers dashed the excitement and copper’s rally as quickly as it started. But that was four months ago… Fast forward to today, and Copper is working on repairing the damage from its “false start” breakout: Copper bottomed out in August and has since clawed its way back from the dead. Yes, it still has work to do. And we’ve had to deal with some choppier action lately due to the will-they-or-won’t-they stimulus plans out of China that have rattled the markets. But copper futures could find its legs again on a breakout above $4.75, which would probably set up another $5 test. Plus, industry bellwether Southern Copper Corp. (SCCO) continues to look constructive at these levels. Metals Mania Goes Nuclear Copper isn’t the only industrial metal stretching its legs these days. Uranium plays have also snapped back to life. Uranium has been an extremely volatile sector in 2024. Like copper, uranium was threatening to break out back in the second quarter before suddenly reversing into the summer months. But it’s back in business as the nuclear story continues to evolve. The Global X Uranium ETF (URA) has now surged 45% off its September lows to post fresh 10-year highs: Up until very recently, the headlines regarding tech’s surging energy demand were primarily juicing utility stocks such as Constellation Energy (CEG) that provide the supply. I get it! CEG is mooning like an alt-coin. But thanks to some help from Google and Amazon (both are investing heavily in nuclear to help power surging data center energy demands) we’re seeing uranium names take the baton and run. Cameco Corp. (CCJ), the top holding in URA, is up more than 60% since Aug. 5 and has just posted new all-time highs. Plus, it’s outperforming the broader market. NexGen Energy (NXE), another major URA holding, is challenging its record high set in May of this year – a high set two months after gold broke out and two weeks before copper futures hit five bucks. Of course, we can’t leave out Denison Mines (DNN) when discussing uranium. Founded by legendary mining engineer Stephen Boleslav Roman in the early ‘70s, DNN is still going strong, up 63% since early September. Lighting the Fuse on Lithium Speaking of energy-related metals, we also have Lithium… The Global X Lithium ETF (LIT) ripped higher along with the rest of the China trade last month. In fact, LIT finished September with the largest 1-week rate-of-change since April 2020. We consider this a bullish momentum thrust, or an initiation thrust, as this type of price action often kicks off a bigger uptrend. (LIT rallied roughly 310% from the spring of 2020 to the fall of 2021.) The gold bull run will likely spill into lithium mining stocks, but these beat down market laggards still need to prove themselves to willing buyers. We’re measuring new highs for lithium names in weeks and months, not years. Top lithium miners Albermarle Corp. (ALB) and Sociedad Quimica y Minera de Chile (SQM) fell roughly 70% from their 2022 peaks as both printed multi-year lows earlier this summer. Buyers will require more constructive stats. But remember, by the time everyone is talking about lithium, these miners will be ripping like Constellation Energy. Gold’s decade-long bear market scared virtually everyone out of the metals trades. In 2024, they’re beginning to find their way back. This is only the beginning. As performance improves, investors will have to work to gain exposure to these emerging market themes. That’s when the real gains begin to stack up. Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com Thank you for reading The Morning Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Sean Ring] [Sean Ring, CAIA, FRM and CMT]( is a former banker and financial educator and is the editor of the Rude Awakening. Sean has trained interns and graduates from Goldman Sachs, Morgan Stanley, Citi, Bank of America, Standard Chartered Bank, DBS (Singapore), the Abu Dhabi Investment Authority (ADIA), Bank Indonesia (the central bank), HSBC, Barclays, RBS, and BlackRock. He knows the global economy is being corrupted by forces that most people can't understand and has used his unique and worldly experiences to help people navigate the markets. [Paradigm]( ☰ ⊗ [UPDATE PREFERENCES]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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