It surprises me that, after months of inflation that haven’t abated, I still have to argue with some people that inflation is hot and is not transitory.
Six months ago, few Americans had heard of Evergrande. Now many worry this Chinese property developer’s downfall will start an economically devastating chain reaction.
This is not going to end well. Eventually price inflation is going to sink the economy as households are forced for budgetary considerations to stop spending money anything other than absolute essentials.
To reiterate, central bankers have extraordinary inside information on the matters of interest rates and money printing done in furtherance of propping up the equity market, so why should they be allowed to trade equities?
A prominent U.S. Senator just called the head of the nation’s central bank “dangerous.” Unfortunately, the true dangers of U.S. monetary and fiscal policy were lost on everyone involved.
The United States has descended into history’s biggest Banana Republic. Open corruption oozes from every nook and cranny in Washington, DC, Wall Street and Corporate America.
As I’ve written about extensively, we know the Federal Reserve has painted itself into a corner where it is now pressured to start tapering its quantitative easing earlier than it had been indicating.
A limited audit authorized by the Dodd-Frank Act found that between 2007 and 2010, the Federal Reserve committed over 16 trillion dollars to foreign central banks and politically influential private companies. Imagine what a full audit would find.
