Transcription
Welcome back. We have breaking news right now and a spike in the producer price level of inflation. Take a look. Markets are selling off here because the July PPI came in up 9/10en of a percent. Uh worse than the estimated up 2/10en of a percent. This is the uh uh headline number. Uh it was expected up 210 came up 9/10en of a percent. Year-over-year it is up 3.3% versus an estimate of up 2.5%.
Now, when you look at core, it's also troubling because in the core PPI, it was up 9/10en of a percent versus an estimate of 210 of a percent. Year-over-year, the core up 3.7%, also higher than the estimated expectation, which was up 2.9%. These numbers have caused markets to uh drop. The Dow indust, the NASDAQ down 71, and the S&P 500 lower by 19.
>> All right, folks. We have some breaking news. Donald Trump's tariffs are triggering a massive inflation spike. Inflation is skyrocketing to a three-year high because of Donald Trump's tariffs. And as a consequence, the market is crashing and MAGA Fox News hosts like Maria Bart Romo are visibly dying inside as they have to report this news to the American people. But before we unpack all that, if you end up liking this video and you want to support the channel, please be sure to hit the like, subscribe, and alert bells before you go.
All right, friends. We are starting to see increasing effects of Trump's tariffs on consumer prices. Um, again, much of this was predictable. Perhaps not the exact timeline given that Trump threatened tariffs, then walked them back and threatened some here, walked them back, made an exception here. The slap dash haphazard approach made it pretty hard to plot the timeline. But what is incontrovertible is that consumer prices are rising because of Donald Trump's tariffs. We've had evidence of that. Now we have more of it. And it's pretty bad news. Here's another short clip I want to show you from CNBC. We're a couple seconds away, folks, from our July release of the producer price index. Headline number is whoppingly big. Oh my goodness. Up 9/10en of a percent. Up 9/10. And if you strip out food and energy, guess what? It's still up 9/10. Boy, uh that equals June of 22. year to March of 22 on the headline to find a bigger number on >> so understand this the same manga Republicans who blamed President Biden for inflation on Biden's watch you have to go back to the height of inflation on Biden's watch to find a bigger number than this okay now I would argue that Biden doesn't get as much blame for inflation under his administration because he was dealing with global inflation Inflation devastated every advanced country on earth because of COVID and COVID's effects on the economy. Now, some people say, "Well, Biden spent a lot." Yes, but so did Trump. So, if that's the metric, then Trump also contributed to Biden era inflation. But the bottom line is to whatever extent you can blame Biden for inflation. Trump is much more responsible for inflation now because he's not dealing with global inflation from a once in a century pandemic. This is triggered by Trump's tariffs. And again, the stock market is dropping as a result. It's crashing as a result.
As the Wall Street Journal notes, stock market today Dow drops after wholesale inflation accelerates. Factory gate prices rose by a much stronger than expected.9%. Stock slipped after new data showed factory gate inflation picking up, introducing fresh question marks overcoming interest rates cuts. The producer price index showed prices rose by a much stronger than expected.9% in July, the largest monthly increase in more than 3 years. A day earlier, futures market suggested investors were highly confident the Federal Reserve would cut rates in September after Tuesday's reassuring consumer price index. Treasury Secretary Scott Besson had talked up a larger.5 percentage point cut. But traders moved early Thursday to pair bets on a September cut. CME Group data showed San Francisco Fed and President Mary Daly, who favors lowering interest rates ne next month, pushed back Wednesday against the need for a jumbo cut. quote, "I'm worried it would send off an urgency signal that I don't feel about the strength of the labor market." So again, Trump uh the tariff, excuse me, the Federal Reserve had been delaying interest rate cuts precisely because of Trump's tariffs um again and again and again, but seemed at least more likely to do so in September than in previous months. And now this sets it back because this is the biggest inflation spike we've seen in 3 years.
Bloomberg also has an article about this. US producer prices rise by most in three years on services. US wholesale, this is these are the key takeaways. US wholesale inflation accelerated in July, suggesting companies are passing along higher import costs related to tariffs. The producer price index increased.9% from a month earlier with services cost increasing 1.1% and good prices excluding good and energy rising 4%. Economists including Ben Ayers and Carl Weinberg comment on the expectation on the implications of the report for inflation and interest rates with Ayer saying quote we expect a stronger pass through of levies into consumer prices in coming months and Weineberg stating quote this report is a strong validation of the Fed's wait and see stance on policy changes. So Jerome Powell is vindicated here. Trump was trying to take a premature victory lap as he often does. But this data showed that Jerome Pal was right to hedge his bets and assume that sooner or later tariffs would cause a meaningful spike in inflation.
Now again, because Trump walked it back, remember Taco Trump always chickens out. He'll threaten these massive tariffs, walk them back like 90%, then increase them by 10% and then do things here. this whole slap dash half-hazard approach um has caused Trump supporters to say, "Well, because inflation isn't as bad as we expected or as bad as the doomsayers prophesied, then that means that Trump is vindicated." No, that's because the the the worst case scenario was always predicated on Trump following through with the worst of his tariff plans or even moderate levels of his tariff threats. So again, it's like one of those things where somebody tells you that they're going to burn down your house and you're like, "Wow, that's really bad. That's going to destroy the house and then they only set fire to the kitchen and then trying to take a victory level. You still have your bedroom. You still have your bathroom. I mean, the kitchen like whatever, but you know, it's not as bad as you expected." It's like, well, you did something really bad and that's that is really bad. We've seen bad effects from Trump's tariffs already. We've seen consumer prices increase at Amazon and um at Teeu, at uh um Walmart, for example. But you see how they constantly shift the goalpost. It's going to be really hard for Trump and MAGA to do it now. Although I assure you they will do everything in their power to make it happen. But again, you you heard it. Maria Baroma's voice. You saw it on her face. She was devastated by this. She didn't even try to spin it. She said this is a terrible number and the markets are crashing as a result. And when you lose Maria Barto Romo, I'm sure she's scrambling for some positive news to spin this. But when her immediate reaction is that level of devastation, you've lost the game on this one.
And I want to remind you of how Trump's approval rating on inflation, which preceded this report, was already portending an electoral defeat in the 2026 midterms. Let me just say this is an abject disaster. Abject disaster for the president of the United States. You mentioned it, Jessica. Look, voters on Trump and inflation. He won the 2024 election because he was more entrusted on inflation than Kla Harris was. Led by a margin of nine points. Look at where his net approval stands today though on inflation. My goodness gracious. Into the gutter we go. Underwater we go. He's 25 points underwater. My goodness gracious. That is where the Little Mermaid is and he is matching the Little Mermaid. That's how far underwater he is on the issue that got him elected. He led on by nine points on it last year and now he's 25 points underwater. As I said, this is a complete and total disaster for the president of the United States.
>> So, let's look ahead to 2026 when a lot of Republican all the House Republicans, some senators going to be on the ballot. What is how is that shaping?
>> Yeah. If Republicans in Congress think that they can escape the wrath of the voters when it comes to inflation, I have a bit of a rude awakening for them. Trust which party more in inflation. You go back to the 2022 midterms. Look at this. Republicans led by 13 points on which party was more trust than inflation. Look at where we are now. Nearly a 15-point shift in the Democrats direction. It's within the margin of error, but the Democrats up by a point.
>> So again, this preceded the report that we just saw in all indicators. would seem to suggest that it's only going to get worse. But this is why Trump wants to rig the midterms in advance because he knows he's unpopular on pretty much every major policy area. He knows his overall approval rating is unpopular. He's the most unpopular president in modern American history, rivaled only by himself in his first term. And that stench, that stain is infecting the Republican party at large, including candidates and officials who are up for reelection in the midterms. Now again, there's still time for because Trump is the most cosmically lucky politician we have ever experienced and he can warp the rules of political gravity. Can't totally defy them, but he can warp them in ways that no other politician can. So again, I don't want to say it is certain that Democrats will sweep the midterms, especially since Trump's trying to rig the election, but the signs are not looking good. And what it means is that you and I and Democratic candidates and other content creators and other content creators audiences have to be vocally loud and consistent and ruthless with reminding the American people that they are paying higher prices as a direct consequence of Trump. Not a pandemic, not Joe Biden, not Democrats, but 100% Trump when he promised that he would cut prices on day one. Don't let him move the goalpost. Don't let him well that was hyperbole. No, he made a promise. He has broken his promise. He has actively made things worse despite numerous off-ramps, numerous people begging him to stop. He has doubled down on these destructive policies which are hitting your pocketbook. And then make the case that rather than reward his party with more power, take the power away from them. Vote every Republican out of Congress, give the power to the Democrats so they can try to check Trump and hold him accountable so he doesn't hurt you and your family. In the meantime, let me know what you think in the comments.