Fed: More Inflation Please!

27 Aug

Fed: More Inflation Please!

Spectacularly Bad Fed Timing… As Usual!

They’re going to put the pedal to the metal on the money printing presses.

Federal Reserve Chairman Jerome Powell has broken the silence – it wasn’t very good silence; everybody knew it was coming.  The cronies always know what the Fed is going to do in advance, anyway – and announced that is not going to be bound by its long-standing two percent inflation target.

Jerome Powell

The Fed’s Open Market Committee has unanimously agreed to suspend the old target.  It will be replaced by something called flexible Average Inflation Targeting (AIT).

Basically, the Fed intends to let inflation run hot.

It’s another textbook case of spectacularly bad timing.  You may remember Alan Greenspan’s Fed and their serial rate cuts that fueled the housing bubble.  Even when the signs were abundant that a bubble was building, they kept at it.  

Now Powell’s Fed wants to crank up inflation at the precise time that consumer prices are already headed higher. Core consumer prices in July showed their biggest increase since January of 1991.  

Consumer price inflation typically lags the Fed’s new money printing – at least at first.  And it has engaged in world record money printing.  Now before the results of its past actions are assimilated, the Fed is going double-down.  

inflation pushing down what the dollar buys

You may wonder who exactly wants higher prices.  Especially now.  Many families are just squeaking by.  

Americans have $21 billion in unpaid rent.  27 percent of Americans didn’t make their rent or mortgage payments last month.  Bankruptcies are at a ten year high, and more are anticipated.  

And the Fed wants higher prices?  That’s right.  Time to beef up your gold and silver holdings!

The Fed has long wanted out from the two percent policy.  It has long wanted much higher inflation.  Now we’re going to get it.  

Good and hard.

jim-sign