Inflation Will Not Return to Fed’s Target, Precious Metals Investor Warns

Epoch Times ^ | 4/21/23 | Liam Nelson

[CFW]

In recent years, inflation has soared to heights not seen since the early 1980s, but Brien Lundin, a precious metals investor who has been closely monitoring the situation, believes the current levels of inflation may be here to stay and that the Federal Reserve’s target of 2 percent inflation is unrealistic.

He is concerned that the unprecedented rise in U.S. money supply—which coincided with the government response to the COVID-19 pandemic—has permanently raised price levels.

“At one point, such inflation levels were standard and easy to achieve,” Lundin told The Epoch Times. “But now, there is so much money in the system that returning to these levels might be unrealistic.”

Since its peak during the summer of last year, broad money supply has decreased by roughly $600 billion as the Fed continues its restrictive monetary tightening campaign. Still, levels remain far above those of history and almost $6 trillion higher than in pre-COVID times.

[CFW]

I believe we are now in year two of "transitory" inflation. The money from the "Inflation Reduction Act" has not yet made its way into the economy but when it does, inflation levels will increase once again.

[eyedigress]

Is that 6 trillion a sum of compounded taxation going back to the fed?

[markman46]

I just got my mobile home lot rent increase 5% this year, last year it was 7%.

[31R1O]

Then you have to let interest rates rise to suck the liquidity out of the system. Harsh medicine but it is the only way to crush inflation expectations.

[eyedigress]

I don’t understand why money people do not explain how the government profits on inflation.

This board should have a few.