CPI Inflation Hits 3-Year High (This Is Next For Bitcoin)

**Ran** (0:00)
Okay, we got the inflation numbers. The inflation numbers were exactly what we expected. As you can see, 4.2% year on year for CPI, that's as expected, 4.2%.
The core CPI, which removes food and energy, is on 2.9%. So what we're basically saying here is, inflation is at 4.2%, which is a long way away from the Fed's 2% inflation target, mainly though because of food and energy, and that's obviously because of the war. And I think what we need to discuss is what the implications are of this. And the reason why I ask or say that we should discuss what the implications are of this is, there are a couple of things that you need to pay attention to. The first thing is, inflation is very, very much on a clear uptrend. If you look at the last three readings that we had, we started off here at about 2.4%. That was before the war. But then we moved to here at 3.3%, then 3.8%, and now 4.2%. That's not the scary part. I'll talk to you about the scary part because it does get a little bit scarier than that. And that's probably what's causing, get this, it's been Bitcoin's worst week since the FTX crash. Believe it or not, I got this from a Bloomberg article, which says, it says, Bitcoin's worst week since the FTX crash signals, and there's probably more pain ahead. So we're gonna talk about that. We're gonna talk about what the real scary part about inflation is. We're gonna talk about the World Cup soccer, or football, or soccer, whatever you call it, where you come from today. We're gonna talk about a whole lot of things right here today.
It's a special Inflation Day show, so happy CPI Day if you celebrate. Let's get the show on the road, ladies and gents.
GM, GM fellas, GM, GM, GM, wife changing money, I see you guys. Hans, I see you. Crypto Healthy, I see you. Where is Joanne Perry?
We cannot start the show without Joanne Perry. Anyway, guys, welcome, welcome, welcome. Let's get into the meat and potatoes of the show. We did get the CPI reading. The CPI reading was exactly as we expected. I guess we had bad expectations because we were expecting 4.2%. The entire market was expecting 4.2%. They got 4.2%. As I mentioned, the core CPI does look a bit better. 2.9%. Core CPI, for those of you who don't know, removes food and removes energy, basically. And so that is coming in at 2.9%. Both of them above the Fed's inflation rate. Now, this is where it gets a lot scarier. You remember that the PPI came in at 6%. The last PPI reading shot up from 4.3% to 6%. That's the producer price index. That number comes out tomorrow. Tomorrow we get CPI. What we know about CPI and PPI is we know that CPI actually tracks PPI. So in other words, CPI eventually goes up to where PPI is, which kind of makes sense because if you're taking production price index, which is what the producers are paying, eventually that does filter in to what the consumers are paying. And so that number is at 6%.
The CPI is tracking it exactly as it's supposed to be tracking in order to get towards 6%.
The other scary thing is if you look at this number over here, this is the highest number we've had since May 2023 This is the highest inflation reading we had since May 2023 The only difference between May 2023 and today is that this was on the way up, and this was on the way down, and this is actually on the way up. You can see that the inflation numbers went up because of COVID. You can see that over here. And in fact, the last time that the inflation numbers actually went up to this level on the way up, was actually in May 2021, which is as a result of all the COVID printing and all the short supplies that were there around COVID.
So the PPI is scary. Where it gets scarier is if you look at what Morgan Stanley actually published, and what they did was they took a fractal of CPI now versus the 70s now. The 70s was a very, very, very scary time for CPI and for PPI, and had just that double CPI header. One was the COVID CPI over here, and now they're saying this is the double header, which brings us into a 1970s style. Now, in the 1970s, they raised interest rates to 20 percent. I kid you not. They raised interest rates to 20 percent to try and kill the inflation, and there was a catastrophic time for market. So let's hope that this doesn't happen.