Two weeks ago, the end of the world looked like it was upon us.
Markets were in freefall… The economy began to stall… Job growth was fading…
And now, everything is suddenly better?
What happened?
Did Kamala Harris finally sit down for an interview?
No. If that had happened, Tim Walz would now be the Democrats’ presidential candidate.
Apparently, all it took was one reasonable inflation prints to allay everyone’s concerns.
In fact, the Chicago Mercantile Exchange Fed Watch tool pins a September meeting quarter-basis-point rate cut at 70%, with 30% expecting a fifty-basis-point cut.
This is what’s known as a bull trap.
They ramp up the fear of missing out until your resolve breaks, leading you to finally buy into the market just as it’s topping out.
You don’t need a Ph.D. in economics to see the red flags all around.
All you need is to continue reading to see how a little common sense can make everything crystal clear.
Inflation at Home
Despite what you may have heard, inflation has not been beaten into submission. Not by a long shot.
The latest Consumer Price Index (CPI) inflation reading garnered headlines like:
“Annual inflation rate slows to 2.9% in July, lowest since 2021” – CNBC
Yet, right under the main header, two important bullet points:
- Excluding food and energy, core CPI came in at a 0.2% monthly rise and a 3.2% annual rate, meeting expectations.
- A 0.4% increase in shelter costs was responsible for 90% of the all-items inflation increase. Food prices climbed 0.2% while energy was flat.
When the Fed says it wants to see inflation at 2%, what it really means is that we’ll accept anything that makes us look good (and is conveniently timed to help Democrats).
Yet, this slight policy shift is the very reason Americans are worse off now than they were four years ago, because it allows the Fed to declare “Mission Accomplished” when Americans are still being hurt by inflation, especially the poorest among us.
It starts with Core CPI excludes food and energy, items that consumers purchase regardless of price, despite their extreme volatility.
While CPI and Core CPI are down 0.1% on an annualized basis from June’s numbers, shelter actually increased on an annualized basis from 5.1% to 5.2%.
The average 30-year fixed mortgage rate is just over 7.0% and has been for a while.
Yet, the median price of existing homes is the highest it’s ever been.
Inflation CANNOT be controlled until the housing shortage is addressed.
The Real Story
The Fed believes high rates are working. They see housing listings steadily climbing.
Freddie Mac published an article in May stating the U.S. was about 1.5 million units short of a balanced market.
However, that only tells part of the story.
Home price inflation has far outpaced wage gains, leaving many lower-income Americans unable to afford homes. Yet, this group of people has the highest total housing unit need.
They also need it the most in the most expensive markets in America; big cities like New York, Chicago, and L.A.
In the meantime, Democrats are banking on Fed rate cuts to help make home buying more affordable.
In reality, dropping gives you phantom deflation.
People looking for homes can suddenly afford higher priced homes because the interest part of their monthly mortgage payments goes down.
Yet, that doesn’t solve the supply shortage, meaning home prices will eventually climb again until demand balances out.
Real Solutions
Senator Mike Lee of Utah offered had a novel approach to this problem: sell more federal land to developers so they can build more homes.
He knows the problem centers on housing supply.
Unsurprisingly, Democrats hated the idea.
They’d rather create chaos with rent control, mucking up market price discovery.
And if Harris wins the White House, you can expect things to get even worse.
The good news is that state governors have started to take things into their own hands.
Pro-business states like Florida and Texas have drawn populations out of high-cost states like California and New York.
With its open tracts of land, Texas offers economic opportunities for people relocate businesses and themselves. It’s already attracted Elon Musk, the richest person in the world.
Florida has had similar success with its Southeast becoming a major financial hub for Citadel.
Democrats want to solve housing by shoving more people into a smaller area.
Republicans want to solve housing by using free markets and fewer regulations to promote healthy solutions.
Now, while politicians and the Fed keep playing their games with inflation numbers and interest rates, smart investors know there’s always opportunity in chaos – if you know where to look.
And right now, there’s a ticking time bomb in the tech world that most people haven’t caught onto yet.
Just like the housing market, AI has a critical supply problem. But it’s not a shortage of homes – it’s a shortage of security. And this flaw could derail trillions in economic growth, making our current inflation headache feel like a gentle tap on the shoulder.
We’re talking about a critical vulnerability in the AI systems that giants like Amazon, Google, and even the U.S. military are relying on.
A flaw that could bring the whole $13.7 trillion AI revolution to a screeching halt.
But here’s where it gets interesting. While Democrats are busy regulating everything that moves, one company has taken a page from the Republican playbook – they’ve developed a free-market solution to AI’s biggest problem.
It’s what veteran trader Jim Woods calls the “AI Master Key.”
Just like how Texas and Florida are solving housing issues with open land and fewer regulations, this company is tackling AI’s security problem with innovative, unrestrained thinking.
And just like those states, they’re attracting big names – 23,000 companies including Amazon and Google are already on board.
This isn’t some pie-in-the-sky startup. We’re talking about a rock-solid business that’s already raked in $3.4 billion.
And the best part? Wall Street’s asleep at the wheel.
This could be your chance to get in before the herd catches on.
This isn’t just about tech – it’s about economic growth, job creation, and not letting China eat our lunch in the global AI race…
…the kind of opportunity that could help offset the financial beatdown many Americans have taken from inflation.
Jim put together a no-BS report that lays out all the detail called The AI Master Key: A Once-In-A-Decade Profit Move.
If you want to cut through the noise and get the real story on this opportunity, click the link below. No fluff, no filler – just the facts you need to make an informed decision.
[Get Jim Woods’ Free AI Master Key Report]
Don’t wait for the mainstream media to catch up. By then, it’ll be too late. And we’ve all seen how well waiting for the government to solve our problems works out.
