Post 333: From Heinz to Smucker: Prices Up, Demand Down, Spin Up

• We start by taking a look back at Heinz.
  • And two decisions that ended their long-term relationship with McDonald’s.
• Healthcare costs for Canadian boomers are being subsidised by the next generation.
  • As well as their retirement.
• Headline consumer price inflation in the US ticks up in August and core inflation remains elevated.
  • And it was mainly due to services i.e. not tariffs.
• Headline wholesale inflation fell.
  • But core wholesale inflation was the highest in five months.
• J.M. Smucker posted their latest results.
  • And no, their sales results are not due to strong consumer demand.
• In Financial Ructions:
  • Another huge jobs number is revised lower.The US recession may have started over a year ago.
  • The price of gold is soaring and 10-year returns from record-high prices have not been good in the past.
    • Why this time might be different; or not.
  • We take a look at Quantitative Easing and why it does not result in higher 10-year Treasury yields.
• In our book review of Taxes Have Consequences:
  • We see more evidence of lower tax rates resulting in greater tax revenue for the government.
  • And how the US government ran a budget surplus right through the Roaring Twenties.
    • Spoiler alert: It wasn’t a coincidence.