Posted on 02/14/2022 9:19:20 AM PST by JV3MRC
CNBC’s on-air editor Rick Santelli tore apart the Federal Reserve following the devastating report that inflation spiked to 7.5 percent for the highest level in forty years.
Santelli ripped the Fed for its lackluster approach to fighting inflation along with Leuthold Group Chief Investment Strategist Jim Paulson's seemingly out-of-touch positive prediction on the U.S inflation outlook during the Feb. 10 edition of Squawk Box. Paulson predicted that inflation will recede from 7.5 percent towards the end of the year down to around three and a half percent and four percent. “I just love what [Paulson is] saying because I don’t really believe much of it, and I agree usually with everything he says.” Santelli then dropped the hammer on Paulson’s argument: “Just because [inflation] came down from seven, the real issue is where it started [two percent], and I think that’s where everybody’s going to fall into this trap: ‘Oh my God lookit! Half of this inflation has disappeared!’ But it’s still significantly higher than pre-COVID!”
Santelli then turned on the Fed and let the institution have it: “Where’s the tightening been? Give me a break! We’re zero to 25. They’re still buying.” He continued: “I don’t see any tightening. I can’t imagine that you have a microscope bigger than mine.” He wouldn’t let up: “The Fed has done nothing! The Fed has done nothing! Blah blah blah blah blah.”
(Excerpt) Read more at newsbusters.org ...
Mr. Tea Party let’s them have it.
Same people saying inflation will drop by the end of the year also said we would not have this inflation and still believe in MMT.
Why does anyone continue to believe anything the lying POS?
I already know the answer, to many now grift of the tax payer trough
Trish Regan predicted this over a year ago in her newsletter 🤪
“the devastating report that inflation spiked to 7.5 percent for the highest level in forty years.”
This is spin. If you read the statement by the Fed carefully you’ll see that December inflation rose over 7% on top of the inflation that they acknowledged but did not put a number on for their November 24, 2021 meeting.
Actual inflation known to the Fed is probably 10% to 16%.
Watch for them to keep downplaying these numbers going into the primary and November elections.
Meanwhile, adjust your portfolios to hedge at least a portion of your assets. It’s not yet time to fold ‘em, but it is time to hold ‘em.
He’s wrong. The Fed created it. They have certainly “done something”.
I guess unicorn farts are going to bring inflation down, or, is it magic pixie dust. The problem with inflation is inflation begets inflation. At 7.5% inflation, everyone is pinched, and labor costs must increase. When labor costs increase, more product price increases must happen. It is a natural upward spiral. We have seen this before under Carter, and it took Volker and Reagan to break it. Lots of pain, because it takes a major recession, tight monetary policy and unemployment. Otherwise, the spiral continues up and out of control. Hard times are coming. Let’s Go Brandon.
I wonder if we’ll see a push for wage and price controls like Nixon tried? “The rents too damn high”.
I always likes him. He was the first to suggest the tea party.
The Fed will drop the hammer on inflation by raising rates once BlackRock has exited its position in the market.
Like holding interest rates down to nearly zero. For over 10 years.
There is a whole generation who thinks money (borrowing) is free. Big surprise coming.
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The TeeVee guys are Cheerleaders for Biden.
Anyone listening to Jim Cramer is dumber than a box of rocks.
Biden and Pelosi STILL want to spend Trillions more!
Can you say Crash?
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The lunatics thought they could avoid the boom/bust business cycle by manipulating the currency and rates. All they did is put it off. But a lot of pols and ceos are now insulted from the consequences the rest of society have to face.
It is good for them that they have places to hide in.
“Transitory” Inflation.
Yeah right.
Methinks you meant to say "BlackRock will allow the Fed will drop the hammer on inflation by raising rates once it has exited its position in the market."
Furthermore, rising interest rates will make the national debt that much worse.
> I wonder if we’ll see a push for wage and price controls like Nixon tried? <
Well, Biden has already gone through steps 1 - 3. So I suppose step 4 is on the way.
Step 1. Ignore the situation.
Step 2: Blame hoarders.
Step 3. Blame greedy producers.
Step 4: Wage and price controls.
Not true. His 2009 rant came many months after FReepers here were calling for “another Tea Party” in response to the profligate REPUBLICAN spending of the 108th and 109th Congresses.
Actually “it’s done nothing” isn’t true. The FED is already tightening, it has more tools than just raising the overnight bank rate, which is the only interest rate the FED controls.
The Bond Market runs the show, and it has left the building, forcing the FED into action. This is the typical scenario and nothing new.
The inflation panic will subside, and so will inflation though it will stick around at a lower level due to demographics and lack of energy of production for a while. It will be manageable, we’ve all lived with inflation all our lives. Disinflation is coming, though those who think week to week won’t notice until it’s upon us.
The monetary collapse wet dreamers will continue to be disappointed and I will take pleasure in their angst.
The Fed is allowing builders to sell off their inventory.
Unfortunately, more people will be ‘underwater’ when the house price boom busts.
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