* The U.S. dollar started out this morning on the defensive * Government released CPI numbers generated a sharp reversal across the board * Gold sold off, but closed slightly down against the dollar * April CPI up just .1% on the month; year over year prices dropped -.2% * Lowest CPI since October 2009 * Core CPI (excludes food & energy) rose .3% * Biggest monthly jump since March 2006 * News sent dollar up on anticipation that rate hike will be more likely * Inflation benchmark is just as real as the 6-1/2% unemployment goal * Traders still haven't figured out that if we ever approach the goal, it will be moved * Biggest factor within the .3% rise in the Core was +.7% in health care costs * Biggest increase since January 2007 - prior to Obamacare * Rising costs will slow consumer spending, weakening the economy and undermining employment * Yellen in a press conference today did not actually project a rate hike * It's all about extend and pretend; actually postponing the rate hike will buy the Fed some time before launching QE4 * Increased inflation as the economy cools down means stagflation * The media is spinning increased inflation as good news * Bad economic news released yesterday: * Unemployment numbers came out higher * Fewer hires mean fewer fires * Chicago Fed National Activities Index came in at -.15 * Three month moving average down to -.23 * MAY PMI expected to rise to 54.6 unexpectedly declined to 53.8 - lowest lever in 16 months * Bloomberg Consumer Comfort Index continued to slide from 43.5 to 42.4 * May Philadelphia Fed looked for a bounce back to 8; missed expectations with 6.7 * Missed expectations 5 out of the last 6 months * Existing Home Sales expected improvement over March; dropped to 5.04 million * Kansas City Federal Reserve Manufacturing Index missed expectations at -13; dropping for 5 consecutive months * Economic data as bad as 2009 and inflation is getting worse * Janet Yellen acknowledged underlying issues with unemployment number, mentioned discouraged and part-time workers * Labor Force Participation Rate is not improving * Low-skilled jobs in jeopardy with minimum wage hikes * $15/hr fever will further hurts employment and erodes the tax base * Higher minimum wage will transform workforce because employers will hire better workers for the higher wages * Movement will substitute technology for labor costs * Minimum wage hikes will undermine the economic recovery that Janet Yellen pretends is existing * So she can continue to pretend that the Fed's monetary policy is working * And she can pretend that they can actually raise interest rates * In the unlikely event Yellen tests a rate hike, they will have to acknowledge that they were wrong * The Fed can always blame the data for deciding not to raise rates and therefore save faceOur Sponsors:* Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD* Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.comPrivacy & Opt-Out: https://redcircle.com/privacy

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“What did the council decide on item 42?” — answered with the speaker and the moment.

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