Sunday, November 8th, 2026
Laramie, Wyoming
By Dan Denning, Research Director
It’s been 66 months since the Federal Reserve last hit its ‘target’ for inflation. That ‘target’ is 2% (for no real good reason). But consumer price inflation has been above that target every month since Febaruary of 2021. On Tuesday, when October’s CPI figures come out, it’ll probably be 67 months.
That data point suggests that rising inflation in America is caused by bad monetary policy (rising money supply) and bad fiscal policy (debt and deficits). Inflation is not caused by data centers. In fact, just a few days after the election, the mouthpiece of the DC elite, the Washington Post, reported that data centers are not responsible for rising electricity prices—apparently a big emotional sore spot in the recent elections.
We’re watching data centers because if the political tide has turned against Silicon Valley and AI, all hell will break loose in the stock market. We’re also watching gas prices and the Strategic Petroleum Reserve and the war in Iran. The next wave to hit the American economy won’t be political…it will be a second wave of 1970s style inflation.
Until tomorrow,
Dan
P.S. As I wrote to BPR paying subscribers on Friday, the risk to the stock market from the mid-term results is that OpenAI and Anthropic cancel their IPOs and form an alliance with DC power-brokers. To what end? To hold back the political tide, restrict open-source AI models (change their weights to be more woke), create government investment/ownership of AI (own the means of production), and under the name of safety, regulate AI models so the public has reduced access/power (restricted access requiring a digital ID and surveillance of how you’re using your AI Agent or model).
I’m talkinga about ‘data censorship’ where the government and Silicon Valley ration AI to the public and create a new permanent political bias in how the models respond to private users. A new form or censorship and propoganda, in other words. Think of how Wikiepedia now works, where only an ‘approved’ line is allowed, with intellectual and political gatekeepers who police and enforce the ‘facts’.
For investors, the bigger question is what can drive valuations higher in 2027 if the AI
IPOs disappear? The data center backlash could also be a big negative for the ‘hyperscalers’ heavily invested in them (Amazon, Meta, Alphabet, Microsoft). Stay tuned for more on that this week. Enjoy all our best research from the last week below.
Dan. Ref your early quote from TWP….. Isn’t it owned by Jeff Bezos?
With money supply at 7% plus the question really should be is RPI/CPI or whatever crappy derivative of these is picked massively understated (we know it is).