Authored by Kevin Stocklin via The Epoch Times (emphasis ours),

New York Attorney General Letitia James led a multi-state coalition of 20 attorneys general calling on the Biden administration to halt the sale of 5.56 caliber ammunition to civilians by the Lake City Army Ammunition Plant, a Missouri-based supplier for the U.S. military.

“Billions of rounds of military-grade ammunition manufactured at the Lake City Army Ammunition Plant have been sold on the commercial market, leading to their use in many of the most tragic mass shootings in recent history,” the AGs stated in a Jan. 9 letter to the White House Office of Gun Violence Prevention. “We ask your Office to conduct an investigation into the contracting processes that led to this situation, and to take action to ensure that military-grade and military-subsidized ammunition stays out of civilian hands.”

The letter was signed by AGs from Arizona, California, Connecticut, Delaware, the District of Columbia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New Mexico, Oregon, Rhode Island, Vermont, and Washington. While many of these states have been enacting restrictions on firearms, others, including Arizona and Vermont, maintain a tradition of relatively permissive gun laws.

However, all signatories expressed their desire to restrict civilian access to ammunition commonly used in semi-automatic AR-15-style rifles, citing in their letter mass shootings in which the 5.56 caliber was used.

“Ammunition from Lake City is manufactured for military use and does not belong in our communities,” the AGs stated, “We ask the White House to ensure that future production contracts prohibit the sale of military weapons and ammunition to civilians.”

Gun Rights Group Disputes Claims

Advocates for firearms rights took issue with the arguments of Ms. James and her co-signers.

“This is another attempt by gun control advocates to chip away at the ability for law-abiding gun owners to exercise their Second Amendment rights to keep and bear arms,” Mark Oliva, public affairs director at the National Shooting Sports Foundation, told The Epoch Times. “This attempt is especially dangerous because their goal of denying the sale of ammunition produced at Lake City would be detrimental to military readiness.”

AR-15-style rifles are the most popular type of rifle sold in the United States. Over the past three decades, the share of AR-15-style rifles rose from around 1 percent of all firearms produced to almost 25 percent by 2020.

Today, there are an estimated 20 million AR-15-style rifles owned by American civilians. While banning them has often been a goal of gun-control advocates, arguing that their removal will reduce gun violence, rifles were used in only 4 percent of U.S. gun deaths, according to the FBI’s Crime Data Explorer.

The Lake City plant has been a supplier to the U.S. military since it was established in 1940, as the first of 12 small arms plants supplying America’s armed forces. Today it occupies 3,935 acres and includes 375 buildings.

According to a press release from Ms. James, “the federal government has invested over $860 million to improve production at Lake City, meaning taxpayer funds are subsidizing production of these dangerous rounds sold to civilians.”

Lake City currently manufactures an estimated 30 percent of all 5.56 ammunition sold to the American public. It has traditionally sold its excess production to civilians as a way to keep its peacetime capacity at a sufficient level that it would not have to face staffing or equipment shortages during wartime.

“It was the Defense Department’s idea that ammunition produced in excess of defense contracts should be allowed for sale to the civilian market so that profits made from those sales could fund the necessary maintenance of tools and a skilled labor force to be able to flex and meet the demands of the Defense Department during a time of war,” Mr. Oliva said.

“Contrary to the false claims that the military subsidizes civilian ammunition sales, the sale of ammunition produced at Lake City reduces the cost to taxpayers because it ensures that the manufacturing capability remains ready to surge when needed and no extra tax dollars are required to replace idled equipment or rehire and retrain the skilled workers needed to ensure our military has the ammunition necessary to protect our nation.”

In addition to 5.56 rounds, many other calibers used by the military are also in civilian use, and comply with regulations set down by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

“Other calibers of ammunition commonly used for lawful purposes by civilian gun owners include 9mm, .308, .30-06, and 12 gauge shotgun cartridges, which are also used by the U.S. military,” Mr. Oliva said. These rounds are commonly used for hunting, target shooting, or self-defense.

“Despite unsubstantiated claims made by these attorneys general, calling Lake City ammunition ‘military-grade’ is an attempt to falsely label the ammunition for political purposes,” Mr. Oliva said.

The Epoch Times reached out to Ms. James’ office for comment, but there was no response at the time of publication.

Airline stocks hit turbulence Friday after Delta Air Lines trimmed its full-year adjusted EPS forecast for 2024, which was below the “more than $7” per share target discussed previously by the company. The airline also reported a decline in total revenue per available seat mile. 

Delta told investors it was now forecasting between $6 and $7 after once forecasting “more than $7” for its full-year adjusted EPS forecast this year. Delta posted 2023 adjusted earnings of $6.25 per share.  

Bloomberg pointed out, “The outlook shows Delta’s not immune to the elevated costs and other challenges plaguing the industry, as supply chain shortages have increased engine repair times and slowed the delivery of some new aircraft. New pilot contracts at three of the four largest US carriers have pushed up spending for wages and other compensation.” 

“With all the uncertainty in the environment, we thought it was prudent” to adjust the forecast, Chief Executive Officer Ed Bastian said in an interview. He said most of the challenges are due to inflation and labor costs, adding, “I’m not giving up on the $7.”

As a result, Delta shares plunged 8.5%, the most significant intraday plunge since July 2022. 

Here’s what Wall Street analysts are saying about Delta (list courtesy of Bloomberg):

Bloomberg Intelligence

• “Delta’s 4Q results indicate fares are weakening and may no longer compensate for higher costs, as the 15% increase in traffic led to 12% more revenue and a 190 bps decline in operating margins,” writes analyst George Ferguson

Citi (buy, PT $56)

• Analyst Stephen Trent says that while EPS and free cash flow for the year are guided lower than previous expectations, he views any stock price dips as enhanced buying opportunities
• “Continued expected multi-billion-dollar FCF generation, earnings growth, and a dividend payout, screen as factors that underpin Delta Air Lines’ quality, in our view.”

Evercore ISI (outperform, PT $60)

• Delta’s expected adj. total revenue increase of 3-6% year- over-year “feels conservative,” according to analyst Duane Pfennigwerth
• “Our initial take is this has room to firm over the balance of the quarter, likely somewhat dependent on the trajectory of fuel prices.”

Delta’s forecast downgrade led to selling across the industry. 

Despite mounting costs, Delta’s CEO believes “2024 demand for air travel remains strong, and our customer base is in a healthy financial position with travel a top priority.” 

Authored by Jonathan Turley,

“It may well be the last real vote you ever get to cast.”

Those words from former Rep. Liz Cheney, R-Wyo., capture the mantra of this election season from politicians and pundits. It is narrative that preys on the fear of Americans that our constitutional system is on the verge of collapse.

Yet, it is untrue and ironically shows the lack of faith in our democratic systems that many of these figures ascribe to others.

If one briefly surfs cable news, you would think that this election is the only thing that stands between democracy and tyranny. On MSNBC, hosts like Joe Scarborough have repeatedly told viewers that former President Donald Trump will “throw away” democracy if elected.

President Joe Biden himself has taken up this claim. In his speech Friday near Valley Forge, Pennsylvania, Biden insisted that “democracy itself is on the ballot” and said that this election would determine if democracy can survive in the United States.

This campaign tactic holds obvious advantages for a candidate who has the lowest polling numbers of the past seven presidents at the same point in their first term in office. Biden and others are calling for citizens to vote not for Biden, but for democracy itself.

The pitch would be more compelling if Democratic activists were not trying to remove Trump from 2024 ballots and Democratic leaders in Florida, North Carolina and other states are refusing to allow other candidates to run against Biden in the primary. In those states, the primary ballots themselves might not be very democratic.

Trump’s rhetoric helps fuel fears of what he might do

Trump helps to fuel such dire predictions with his reckless rhetoric.  After the Supreme Court accepted review of his disqualification from the ballot in Colorado, he said at an Iowa rally, “I just hope we get fair treatment. Because if we don’t, our country’s in big, big trouble. Does everybody understand what I’m saying?”

The answer is that it depends on whom you ask. For Democrats, the comment seemed to threaten more violence like the kind we witnessed during the attack on the U.S. Capitol on Jan. 6, 2021, especially given Trump’s pledge to pardon rioters.

For Republicans, it was a frank acknowledgement of the deepening anger and divisions in the country.

Those divisions are manifest in a new Gallup poll showing that only 28% of U.S. adults are satisfied with the way democracy is working in the country. It’s down from 61% in 1984. Only 17% of Republicans and 38% of Democrats are satisfied with our current state of democracy.

While I do not believe that the Jan. 6 riot was a true insurrection, I immediately denounced it as a desecration of our constitutional system. I criticized Trump’s speech that day as he was giving it. I also supported Vice President Mike Pence’s actions at the Capitol and rejected the legal basis for opposing the certification of the election.

Jan. 6 was many things, and all of them bad − save for one vital thing: Our system worked.

The Capitol riot was only the latest stress test for a system that has survived wars, economic collapse and social divisions. Despite an assault inside our Capitol, the system held and functioned as it was designed. And despite the claims of some partisans, we were never “dangerously close to losing it all.”

It was a desecration of our system but also the triumph of that system. Members of both parties quickly reassembled to carry out their constitutional functions. Our nation’s vice president held firm despite pressure from the president and threats from an angry mob against his very life to certify the election.

As the legislative branch fulfilled its constitutional duties, the judiciary did the same. Trump-appointed judges and justices voted against the incumbent president’s claims and cleared the path for the Biden inauguration.

We can recognize the gravity of that riot without engaging in the type of hyperbole that is now being bantered about in the campaign.

Once again, Trump has stoked such claims with comments like saying that if he were reelected, he’d “want to be a dictator for one day.” The former president stressed that he was speaking of ordering the building of the border wall and drilling for oil − unilateral actions that the host of the interview, Sean Hannity, immediately noted would not make Trump a dictator. However, Trump did not take the helpful nudge to clarify his words.

Yet, even if Trump did mean that he would attempt to be a dictator (and to do so past the first day), it is not up to him. For more than two centuries, presidents have sought to act unilaterally or assume extraconstitutional powers only to be checked by the legislative and judicial branches.

To suggest that this may be our last democratic election is to suggest that both branches (and the population at large) would stand idly by as a president assumed tyrannical powers. That did not occur, even when this country was united by wars and national emergencies. With the nation now divided right down the middle, it is even less likely.

That is why the “democracy is on the ballot” claims border on defamation against our Constitution. We have the most successful and stable democratic system in history. The success of that system is not measured by those who would riot or challenge our values. It is measured by how the system responds. Our system works because it was not only written for times of relative unity and calm, it also was written for times like these.

What remains is a crisis of faith for some and a preying on of those fears by others. Our Constitution ultimately is a leap of faith, not only in government but also in one another. This faith should be strong in a system that has met every challenge, including Jan. 6.

Many things will be on the ballot in 2024, but democracy is not one of them.

Jonathan Turley is the Shapiro professor of Public Interest Law at George Washington University. Follow him on Twitter @JonathanTurley

Via The College Fix,

Johns Hopkins University School of Medicine on Wednesday rescinded an email sent recently from its diversity, equity and inclusion chief that called white, Christian, English-speaking people privileged, among several other “social identity groups,” according to screenshots of the memo posted on X.

Others listed on the privileged list included: able-bodied people, heterosexuals, cisgender people, middle or owning class people, and middle-aged people.

The January 2024 memo was sent Dr. Sherita Golden, Johns Hopkins Medicine’s chief diversity officer and a professor of medicine, who listed “privilege” as the “diversity word of the month.”

It was sent to employees, according to End Wokeness, the X account that posted the screenshots.

The DEI memo stated in part that “privileges are unearned and are granted to people in the dominant groups whether they want that privilege or not, and regardless of their stated intent.”

John Hopkins just sent out this hit list of people automatically guilty of “privilege” whether they know it or not:

-Males
-Whites
-Christians
-Mid-aged people
-Able-bodied people
-Middle & owning class
-English-speaking people

This message was emailed directly to employees… pic.twitter.com/xor1wjo17B

— End Wokeness (@EndWokeness) January 10, 2024

The post on X went viral — viewed more than 29 million times in the span of 24 hours — and was widely ridiculed.

The top comment stated:

“Black female Chief Diversity Officers are more privileged than nearly everyone covered under that list. They’re paid far more than the average middle class person, and they have the privilege of being hired and treated above criticism because of their race and sex.”

Another popular response stated:

“Middle aged people? So now just being alive makes you an oppressor?”

The post even prompted a reaction from Elon Musk, who stated:

“This must end!”

The backlash prompted Golden to apologize for her memo, a screenshot of which was also posted on X by the End Wokeness account.

She called her letter “overly simplistic and poorly worded” and retracted the memo, which she acknowledged was “hurtful.”

In a statement Thursday to The National Desk, a Johns Hopkins Medicine spokesperson said the memo did not represent its values:

“The January edition of the monthly newsletter from the Johns Hopkins Medicine Office of Diversity, Inclusion and Health Equity used language that contradicts the values of Johns Hopkins as an institution. Dr. Sherita Golden, Johns Hopkins Medicine’s Chief Diversity Officer, has sincerely acknowledged this mistake and retracted the language used in the message.”

Johns Hopkins is no stranger to advancing DEI, with anti-racism and racial justice trainings and a recommended reading list of progressive, pro-critical race theory books, for example.

‘Sell the news’ hit bitcoin after all following the much-anticipated launch of a spot ETF yesterday after the SEC’s begrudging approval on Wednesday.

‘Day One’ was incredibly impressive as the freshly minted ETFs managed to clear $4.5BN worth of volume.

But, this morning’s renewed selling pressure has Bitcoin down almost $6,000 from its post-ETF approval highs (hit right before the cash ETF trading started yesterday)…

Source: Bloomberg

Some have argued this is South Korean traders – who have been among the most aggressive buyers over the past two months – taking some profits.

As Bloomberg noted in December, the won was exchanged for Bitcoin in 42.8% of fiat trading activity in the largest cryptocurrency in November, CCData says.

From September to the present, the won’s market share increased by about 17% to around 41%, while the dollar’s share decreased 11% to around 40% of activity.

Others have suggested large transfers from Grayscale to CoinBase might be responsible for the weakness.

The selling wave appears to concentrated from the US equity market open to the EU equity market close for now…

Whatever it is, while BTC has been dumped, it appears we were right on what would happen next…

And now, frontrunning the ETH ETF

— zerohedge (@zerohedge) January 9, 2024

As Ethereum is dramatically outperforming…

With the ETH/BTC pair roaring higher…

…off previous medium-term support…

Sure enough, as Decrypt reports, experts now believe the SEC’s acquiescence could have opened the door to the approval of other crypto-backed spot ETFs, namely a spot Ethereum ETF.

And thanks to the precedent set by a Bitcoin ETF, that financial product could enter the market in a matter of months, not years.

Eric Balchunas, a senior ETF analyst at Bloomberg, says he is 70% confident that a spot ETH ETF will be approved by May.

Larry Fink, the CEO of BlackRock (BLK), backed the notion of an ether (ETH) exchange-traded fund (ETF) a day after the much-anticipated bitcoin (BTC) ETF went live.

“I see value in having an Ethereum ETF,” Fink said in an interview with CNBC on Friday.

“These are just stepping stones towards tokenization and I really do believe this is where we’re going to be going.”

Scott Melker, known as “The Wolf Of All Streets,” responded on X (formerly Twitter).

“The rotation is real.”

Fink also said he did not see cryptocurrency as a currency but as an asset class, referring specifically to bitcoin as “an asset class that protects you” against fears of geopolitical risk.

“It’s no different than what gold represented over thousands of years,” he said.

“Unlike gold, we’re almost at the ceiling of the amount of bitcoin that can be created.”

ARK Invest founder and CEO Cathie Wood previously predicted that the approval of a spot Bitcoin ETF in the U.S. could potentially trigger short-term selling. The executive is still bullish on BTC price in the longer term.

Legacy media spent this week pushing out climate doomsday propaganda about how 2023 was allegedly the hottest year on record.

Why Are “Hottest Year” Ever Headlines Spiking Right Before A Polar Vortex? https://t.co/eAeyFjAwtL

— zerohedge (@zerohedge) January 12, 2024

If so, then how is it not even two weeks into the new year that Chicago O’Hare International Airport issued a ground stop due to blizzard conditions?

Round 2 of the winter storm has arrived west of Chicago. Very heavy and wet snow now falling. Winds have increased from this morning. Things will only get worse from here as the peak of the storm arrives later today. Ground stop at O’hare is in place. Tracking this major Winter… pic.twitter.com/k8n6cXXD3X

— Aaron Jayjack (@aaronjayjack) January 12, 2024

As of 0930, Reuters, citing flight-tracking website FlightAware, reported 1,643 flights were canceled, and 1,238 flights were delayed nationwide. 

Website FlyChicago reported at 1000 ET that most of those cancellations were at Chicago O’Hare International Airport (757 cancellations) and Midway International Airport (261 cancellations). O’Hare issued a ground-stop delay earlier this morning. 

Air travel disruptions are due to a powerful winter storm dumping heavy snow across the Midwest and the Great Lakes. Blizzard warnings are in effect for six states, including Nebraska and Wisconsin. 

The National Weather Service in Chicago has asked all drivers to stay off the roads. 

If you’re out on the roads this morning, you’re not going to have a good time. These webcams (courtesy of @IDOT_Illinois & @ILTollway) show conditions that are common across the area with snow-covered roads & visibilities of <= 1/2 mile. Consider postponing travel this morning. pic.twitter.com/ShoofNuoPa

— NWS Chicago (@NWSChicago) January 12, 2024

It’s an active day with all sorts of weather alerts posted across the eastern half of the US. 

Meanwhile, a polar vortex split is about to freeze a large swath of the Lower 48. 

“Gobsmackingly Bananas”: Weather Models Predict Polar Vortex Invasion Into US https://t.co/iMwD7WJxhS

— zerohedge (@zerohedge) January 7, 2024

Will The Texas Power Grid Survive Next Week’s Polar Vortex? https://t.co/BcGsF8g2t8

— zerohedge (@zerohedge) January 10, 2024

As noted Thursday evening, weather forecasters are watching a possible winter storm for the Northeast early next week. 

“Hurricane-Force Blizzard” Could Hit Northeast Next Week, Weather Forecaster Warns https://t.co/W9yfj7dwLP

— zerohedge (@zerohedge) January 11, 2024

Shady climate math on record heat and now winter storms do not compute. 

Authored by Martin Armstrong via ArmstrongEconomics.com,

Democratic Rep. Yvette Clarke is running for re-election this year in New York’s 9th District to FINISH THE JOB of utterly destroying New York.

To achieve her goal of ruining a once great city, Clarke is demanding MORE illegal migrants.

Clarke actually admitted that the Democrats need more migrants to overrun their cities and states for “redistricting purposes.”

“I’m from Brooklyn, New York. We have a diaspora that can absorb a significant number of these migrants,” said Clarke, who has served on the House Committee on Homeland Security.

“When I hear colleagues talk about, you know, the doors of the inn being closed — ah, no room at the inn — I’m saying I need more people in my district just for redistricting purposes.”

We need more people to come to America illegally – so I can keep my job in Congress.

If you want to know why Ds support illegal immigration, here’s your sorry answer.

It’s stunning she said it. https://t.co/NxzJbG5sgN

— Ari Fleischer (@AriFleischer) January 9, 2024

Now, redrawing districts is a common tactic used by the right and left. However, dismantling the Constitution to allow non-citizens to enter the country and vote is not.

Watch how the federal government blames the state government in the video below.

Doocy: “A whole high school in New York is having remote classes today because the building was needed to house people who came into this country illegally. So, what is the President’s priority in this case? Is it the migrants or is it the students?” pic.twitter.com/lMLtyE0qey

— Bruce Snyder (@RealBruceSnyder) January 10, 2024

No one will take responsibility for the state of our nation.

Did Clarke actually admit that the invasion of America under Joe Biden was a deliberate ploy for votes?

Republican New York City councilwoman explained the situation in further detail. “Congressional seats are allocated by population. Higher population states get more congressional seats, and therefore more political power in Washington. “Blue states have been LOSING seats as people flee progressive policies,” continued Paladino. “We’re set to possibly lose THREE seats by 2030 in NY. These allocations are determined by census-calculated raw population, including illegals. See how it works?”

Clarke is from Brooklyn, where children were just expelled from school to make room for illegal migrants. Clarke was responsible for passing the Dream and Promise Act (H.R. 6) legislation that provided 2.5 million illegal migrants, or dreamers, temporary residence in America and an easy path to citizenship.

The ploy to infiltrate America with illegal migrants began years ago. At first, they said those wishing to come here were simply “dreamers” looking for a better life, similar to most of our ancestors. However, they were not following the typical protocol to enter the country. Then left politicians told migrants that they were WELCOME in their cities and could declare sanctuary there. Naturally, countless people fled their socialistic hell holes for America, where the government then decided they were not going to issue work permits but force them to become dependent on government aid. Soon, they will be provided with the right to vote, and certainly, they will vote for the people who are enabling their new lives.

Emerging reports in Iranian state media and from Iraqi and Russian sources have indicated the US base at Syria’s Conoco oilfield in northeast Syria has come under fresh attack on Friday.

Additionally Sputnik’s regional correspondent has cited a series of violent explosions at the US outpost. The statement, though unconfirmed in other international sources, said the “American air defenses tried to confront the missile attack with their ground and air anti-aircraft weapons, to no avail… the American occupation army’s air force and helicopters, in the meantime, began flying over the skies of the towns surrounding its bases.”

Iranian state IRNA said “the US military base has come under attacks by the Iraqi resistance groups in response to the Washington-backed Israeli war crimes in Gaza Strip” on Friday.

Overnight, the US and UK launched a major assault on Iran-linked Houthis in Yemen, related to the Red Sea shipping crisis, and American bases in the regions are now bracing for a response from Tehran-backed militants.

Beirut-based media outlet The Cradle says that although Iraqi militia sources have yet to confirm the new operation targeting Conoco, “The attack comes just days after US forces carried out live drills near the Conoco base, aimed at training for potential attacks on the facility.”

There are other significant rumors that additional bases in the region could be facing hostile fire, but nothing has been verified from the Pentagon or US Central Command at this early stage.

But what has been confirmed is the recent soaring number of attacks, according Military Times:

U.S. troops deployed to Iraq and Syria have come under attack from Iran-backed militias 130 times since Oct. 17 as of Thursday, according to the Pentagon, totaling 53 attacks in Iraq and 77 in Syria.

The drone, rocket, mortar and missile attacks have injured 69 U.S. troops, but a Pentagon spokesman said Thursday that no troops have been injured since Dec. 25.

“When it comes to U.S. forces in the region, again, we’re there for one reason and one reason only, which is the enduring defeat of ISIS,” Air Force Maj. Gen. Pat Ryder said in a fresh briefing. “And so we will continue to call on these Iranian proxies to cease these attacks, but we won’t hesitate, as we’ve demonstrated in the past, to take appropriate action to protect our forces should we need to do that.”

Meanwhile, the White House says the US is not looking for a fight…

US ‘not looking for conflict with Iran’ despite Houthi strikes: White House

Ever since US forces began occupying Syria, the official justification for their presence has constantly shifted. While Trump famously said it was “to secure the oil” – the Pentagon has at various times cited an anti-ISIS or counter-Iran mission. It is also in the context of the longtime failed regime change operation targeting Damascus and Assad.

Authored by Simon White, Bloomberg macro strategist,

Money and inflation data released overnight in China continues to show scant signs of an upturn that would justify a risk-on mood. Sentiment in stocks is weak, but we are not yet at extremes that indicate an imminent bounce in prices.

It’s becoming a bit “waiting for Godot” in looking for an upturn in China. Inflation data earlier today improved only slightly (but was slightly weaker than expectations), even though both PPI and CPI remain in deflationary territory.

One of the most reliable signs, however, of a durable recovery in China will be when money growth, especially M1, inflects higher. But there was no sign of that in today’s data.

M2 growth came in at 9.7% for December versus 10% for the prior month, while M1 held steady at an anemic 1.3%. Aggregate financing continued to weaken on a trend basis.

Stimulus has yet to gain traction in China, and arouse animal spirits. Nonetheless, in a sign the market is becoming inured to bad news, stock futures and the yuan are little changed after the money data was released.

For an upturn in equities, it’s worth keeping an eye on breadth.

It’s on the soft side at the moment, but when it hits extreme lows, it’s typically a sign a bounce in prices is close.

The chart below shows the percentage of stocks in the CSI 300 trading above their 200-day moving average.

It’s low, but we likely need to see a bit more negativity before any tradeable reversal is in.

[ZH: However, amid all this, it appears someone knows something…]

two days ago it was FXI. Today it’s FXI and KWEB https://t.co/Psijg12PbX pic.twitter.com/cbUzhr9eWx

— zerohedge (@zerohedge) January 12, 2024

‘Cooler-than-expected’ PPI apparently trumps ‘hotter-than-expected’ CPI and the markets are reacting ‘dovishly’ with rate-cut expectations soaring.

The odds of a March rate-cut have jumped back up to over 75%…

And the market now expects 160bps of cuts in 2024…

2Y yields tumbled to 8-month lows…

Which has forced a dis-inversion of the (2s30s) yield curve..

For the first time since October…

And gold is bouncing too…

Ugly-ish bank earnings data makes the case even stronger for The Fed to start cutting in March – as we detailed here and here – and PPI is just the icing on the cake.