The basics of modern monetary theory

US import price index (May): Up 1.9% m/m, driven by rise in fuel & non-fuel imports which were up 12.5% m/m Up 6.7% y/y, largest gain since Aug 2022 Export price index up 1.3% m/m, driven by higher Non-agricultural export prices Up 11.2% y/y, largest gain since Aug 2022

This is for the "rate hikes are supposed to bring down inflation" crowd.

US homebuilder sentiment drops in June as mortgage rates rise finance.yahoo.com/economy/po…

Markets close higher Friday led by the debut of $SPCX Week ahead: FOMC interest rate decision Retail sales (May) Jobless claims Building permits & housing starts (May) Import price index (May) cnbc.com/2026/06/11/stock-ma…

Preliminary June consumer sentiment up 9.2% m/m but still down by over 19% y/y Short & long term inflation outlook improved slightly but still elevated: 1 yr outlook fell to 4.6% (4.8% in May) 5-10 yr outlook fell to 3.4% (3.9% in May)

Published in the @WSJ on this day in 2022. 1/4

Claims rise to 229k, highest since Feb despite little sign of rising layoffs anytime soon. marketwatch.com/story/jobles…

May PPI takeaways: Up 1.1% m/m, 6.5% y/y (largest since Nov 2022) Goods prices rose 2.8%, highest ever recorded (80% of that rise from energy prices 10.7%) Gas prices 23.4% Ex food, energy, & trade: 0.8% m/m, 5.1% y/y both largest increase since 2022 cnbc.com/2026/06/11/producer…

May CPI takeaways: 1) headline number now above 4% (4.2%) highest since April 2023 2) core at 2.9%, highest since Sept 3) gas prices were up 7% in May, up 40.5% y/y, energy prices up 3.9% in May & up 23.5% y/y 4) fuel oil 3.8% m/m, 58.9% y/y 5) rate hike odds up

Median home price jumped by 1.3% to now $429,300 which is the highest ever recorded in May while supply continues to drag in many parts of the country.

Wholesale inventories came in as expected in April at 0.6% m/m but changed little from March which was up 0.5% m/m Sales in April came in at 2% m/m, which came in better than expected but down from March which was at 3% m/m

And the federal reserve is expected to jack up interest rates by October to further ensure your wages don't keep pace with inflation. While of course getting the rate thing backwards.

The thing about the trust fund “running dry* is that the government could keep funding full Social Security benefits out of general revenue. It would require Congress to pass legislation. But it’s very doable. What’s really funny is this: 1/

There are a couple of issues with the analysis: first, reserve currency trap is only secondary to financialization trap; Bernanke's savings glut theory is problematic - net capital inflows $650B vs financial asset net creation $3.7T in 07, close to

Nice essay from my friend Paul London, former U.S. Deputy Under Secretary of Commerce. "The old idea is simple: Government debt is inherently dangerous, while private investment and spending are the virtuous engines of growth. The historical record, however, tells us something different. The worst economic crises in American history have been driven by private-sector speculation, collapsing private debts, falling prices and the unwillingness of government to act boldly to avoid disaster."

All three major indices finished lower on the week led by the NASDAQ which tumbled 4.7% while on Friday having its worst day since April 2025 Week ahead: CPI & PPI (May) June consumer sentiment (preliminary) Existing home sales (May) Wholesale inventories (April)