Sunday 19 June 2022

Inflation: Why The Past Won't Be Prologue.

Here we go again with recency bias...

FFS, The Federal Reserve can't pause or reverse interest rate hikes the way it did before. Why? Because of galloping inflation which will only surge ahead in even greater fashion, if they stop hikes or relent.

The Fed has to do a full Volcker, otherwise this economy is thoroughly and completely screwed for at least the next decade.

In short, take the bitter pill of The Feds' poison now in full measure or watch our present recession turn into the greatest Depression that humankind has ever experienced. That's reality. Powell has zero maneuvering room and even FOMC idiots belatedly have come to recognize that.

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