Buying less of something else?
I’ll bite.
The money is rushing to the top. There, it meets a very,very, low propensity to spend. So it mostly goes to buying assets. Like houses, collaterized credit card debt and car leases, and even some publicly traded equities (but mostly private equity). It leaves the economy. It just sort of sits there, growing. Never recentering the economy.
Mostly this.
So, what happens then? Anyone? Bueller?
Might be time for a visit to Canada.
Never seen the GBP to CAN $ this high in 5Y (1.88:1) due to the current base rate differentials.
From the latest WSJ A-Hed column:
Coffee is going to go even higher most likely.
They haven’t passed on a large portion of the 50% Brazil tariffs just yet.
That fire at the refinery in CA is going to be felt in the gas price over the next few months.
Probably CA only.
It was a tupac thing, refinery fire seaon. Not sure how much it shut down the motor fuel portion. Heard it was jet fuel part of the plant. And yes, the CA refinery market is very distinct from other markets, combination of geography and fuel standards.
I was in AZ on vacation and their news was saying it could have an effect on them as well. And while it will affect CA the most, seems like if enough of the supply is offline (i heard that refinery supplied 20% of the gas, diesel and aviation fuel for So-Cal) it could require or get more supply from other places shipped in to replace that much supply. I remember another time when there was a problem somewhere and our prices went up because the local refiners could sell into that market at a decent premium over the local market.
This had something to do with beef prices going up.
Canadian inflation up more than expected for September: to 2.4% from 1.9%. Will be interesting if US numbers spike up as well.
I’m sure the numbers will show no inflation.
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Or may not be released
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This is the last I read. Things could have changed since the 10th.
BLS will publish the September 2025 Consumer Price Index (CPI) on Friday, October 24, 2025, at 8:30 A.M. Eastern Time. No other releases will be rescheduled or produced until the resumption of regular government services. This release allows the Social Security Administration to meet statutory deadlines necessary to ensure the accurate and timely payment of benefits.
The SSA uses four consecutive quarters, ending with the third quarter, to calculate its annual benefit increase.
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About those beef prices…
Can confirm from a lunch here in London (Hawksmoor) that prices for a good steak are shooting up and size is going down.
Banks reportedly prepare another mega-deal to finance data centers. JPMorgan Chase and Mitsubishi
UFJ Financial Group are among those leading the planned sale of $38 billion in debt to support the construction of computing facilities tied to Oracle and OpenAI, according to Bloomberg. The deal follows a complicated $27 billion transaction to finance data centers for Meta.
Kewl! Another $65bn of private debt AND a boost of $65bn to GDP. Win-win.
We can start paying for all the productivity increases right now.
I’m admittedly hesitant in believing the published numbers. I get the SSA angle, but a special call put together in a govt shutdown by a guy just put in place after his predecessor’s firing for simply reporting the correct numbers?
I want to tell myself it’s too conspiracy-ish, but, I just dunno anymore.
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CPI-U All Items number is 324.800. That has to be a made up number. What are the chances you get a round number like that??? 
Precisely 1:100
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