ErectoPeentrounus t1_ixnr4ul wrote
Reply to comment by Wide_Cardiologist667 in Most Feds members want interest rates to slow down unless Papa Powell doesn’t agree 👴🏻 what’s y’all experts take? by stockslord
inflation won’t jump but a 2% today compared to pre hyper inflation is like 30%
that’s true inflation, we need to see DEFLATION. Fed needs to shrink their sheet by a few trillion. if there is high $ demand it’s easier to tighten since we export our inflation away. Inflation happens once, u printed the money, that’s it, it’s been added to the supply and now we feel its effects. Problem is a lot of it went into stocks hence true inflation only 30% and not 100% where it should be since we doubled dollar supply. Stocks soaked up that 70%. Now when stocks go down, that money comes out and is spent which adds that 70% back into the system. Granted it’s not that direct but sort of. CPI won’t increase because with the revised fake formulas and referencing prior years. Hyperinflation report compared to a hyperinflation report will come out to normal inflation. hence CPI did peak. MoM likley didn’t.
True hyperinflation hasn’t shown it’s teeth. Problem is if it does show it’s teeth other countries will dump the dollar which will cause a inflationary spiral hence ECB also hiked along with USA. Everyone is hiking because everyone printed their currency into worthless territory.
The goal of the fed is simple: crush the world economy by causing the dollar to strengthen so that everyone hoards it and favors it over other currencies to prevent the dollar dumping. Europe collapse is inevitable since their banks never even recovered from 2008 and their collapse will bail out America.
Powell is playing 5D chess. It isn’t about how high, it’s about how high and how long America can stay in high rates so that we don’t default on our own debt before other countries do
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