[usconservative]

After a single Federal Reserve rate hike of 75bps I am noticing a trend among mainstream economists whipping out their crystal balls and predicting an almost immediate reversion to deflationary conditions. In their view, a recession will “balance everything out.”

It's going to take a hell of a lot more than a 75bps increase to reverse the high inflationary trends we're experiencing.

And I think everyone on FR knows this.

I grew up during the stagflation of the 1970's and early 80's. I remember how painful that was with mom & dad struggling to keep us kids fed and a roof over our heads.

We ain't seen nuthin' here yet.

[crz]

Thats right. The interest rate should be a tad more than the inflation rate.

Problem is..they can not do it and they know it.

The interest payment alone on the debt would be enormous.

[cgbg]

Inflation needs to work its way all the way from raw materials through manufacturing through transport and then to retail.

This takes many months for most products and years for some others.