Inflation is cooling and so is the Fed. But at what cost?
Inflation came in slightly lower than expected, but still above the desired 2% the Fed targets. Turns out the 4% current rate was enough to slow Powell’s roll, for now. But, will holding provide the relief that Americans and sovereign nations need to recalibrate? Availability of home loans declined for the third straight month. Experts are warning of a commercial mortgage reckoning, if not collapse, when short-term variable mortgages flip to LIBOR+. Student loan repayments are scheduled to kick back in after the summer. And sovereign debt is still headed to crisis tipping point—Lebanon, Russia, Sri Lanka, Suriname and Zambia are officially in default; Argentina, Ghana, Pakistan and El Salvador are likely on the brink of debt crises, according to the University of California Press.
NYT: CPI Report Live: Inflation Rose 4% in May, Another Sign of Cooling
But his documents!
Trump is once again in “unprecedented” territory as the only U.S. President to face charges under the Espionage Act. This article from the World Socialist Web Site provides some timely history from a socialist perspective, reviving the story of Eugene Debs, who faced charges of sedition under the Wilson administration and was successfully prosecuted by the government. He still ran for president. Might history repeat itself in the most bizarre way imaginable?
World Socialist Web Site: The Democratic Party, Donald Trump and the Espionage Act
ICIJ Strikes Again
As I’ve said before, there is great reporting all around. Perhaps the best reporting the world has ever seen. The only problem is that you have to hunt for it, and most Americans either don’t know where to look or simply don’t care. The ICIJ once again comes to the rescue, this time with a massive multi-nation investigation into slimy corporate ESG tactics and deforestation companies who sell themselves as sustainability champions. We’re just digging into the series, and so should you. From the report:
“During the nine-month investigation, involving reporters from 27 countries, ICIJ and its partners found that major environmental auditing firms have ignored or failed to recognize glaring environmental damage caused by more than 340 clients in the forest-product industry, clients whose practices they certified as sustainable. The clients included timber traders, paper and pulp producers, furniture makers and other companies that deal in commodities linked to deforestation.”
ICIJ: About the Deforestation Inc. investigation
Unf*cker Comment of the Week
A double shot from our friend Nathan S(irst):
“Max, Book Love: I just finished The Gangsters of Capitalism by Jonathan Katz. This could be an incredible story for you to Unf*ck in the future. From listening to you, I think this is a book you would love. 99, I know we have had our differences, but wanted to let you know that I have now passed my first full month of eating a completely plant-based diet. I wanted you to know that your episode on Veganism helped push me into the direction that I was already trying to achieve. It has made me feel much better, both physically and emotionally, and your approach to discussing vegetarianism has helped me in my journey.”