No worries Al Krugman believes inflation is temporary and the economy will come roaring back.
The official state economist has spoken comrades, all is well.
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The asset/ruling class welcomes asset inflation. Inflation is how they get rich without working.
Don’t hold cash and you’ll be fine.
“Peter said that the inflation tsunami is just getting started and the Fed is powerless to fight it.”
The Fed isn’t powerless to fight inflation. They can and eventually will do the same thing that Paul Volcker did, halt the growth of the money supply dead in its tracks.
This will send interest rates soaring in the short term and cause a recession. The question is how long they are going to drag their feet before getting serious about it.
Hmmm, what to do, what to do?
I got it!
WW3
Unless the clot shots work as intended and people start dying off in greater and greater numbers. Depopulation is deflationary.
No kidding.
“There is no way you can fight historically high inflation with 1% interest rates. One percent interest was the rate Alan Greenspan slashed rates to in 2002 to stimulate the economy after the stock market bubble popped and we had that recession. You can’t fight inflation with stimulative monetary policy. You need restrictive monetary policy. And no one is even talking about making money tight. All they’re doing is talking about making it less loose. And you can’t fight inflation with loose money.”
A lot of people said that the markets should be allowed to correct themselves back then. It might have meant the end of GM but, oh well, the company would have been bought up and reorganized and might be building something better than the fall apart junk it builds now. But no. Greenspan had to suck up to the Pols and Traders and use monetary policy to avoid the normal business cycle.
The perps of this inflation cycle are all insulated from it.
Who said it would be enough, Peter? Who said 50 basis points would kill inflation?
Hearing voices again?
here’s a novel thought, hang all the leftist politicians in the world, then reset the world economy/prices back to 12/31/2021... just sayin
There is “not exactly” a savings glut. All of interest income from every checking and savings account I have added up to 22.00 dollars in 2020. It was not a small amount either - about 5 months of income.
$22.00 total. You have to invest successfully in the stock market or gold or drugs or democrat politicians just to stay even with inflation and taxes.