Rothschild’s Central Bank [Federal Reserve] Acts in It’s Own Best Self Interest: Inflation

chartIs Inflation In Your Best Interest, Or The Fed’s? –Lebowitz/Zero Hedge

“‘We want to see American citizens pay higher prices for milk, butter, eggs, bread, and toilet paper. To reach our goal, we will adjust monetary policy to make these goods and other goods and services more expensive in the future.’

How long before mobs storm the Fed headquarters if Jerome Powell were to make such a statement?

Is our mock proclamation that different from Powell’s comment on 12/16/2020: ‘With inflation running persistently below 2%, we will aim to achieve inflation moderately above 2% for some time so that inflation average is 2% over time and longer-term inflation expectations remain well-anchored at 2%.’

During Powell’s most recent press conference, not one reporter asked how the public benefits from paying more for goods and services…Today we share with you what the Fed, media, and Wall Street will not. By doing so, we help you decide if inflation is for the greater good.

The Congress are supposed to ensure the Fed adheres to its statutory mandate of ‘maximum employment, stable prices, and moderate long-term interest rates.’

If the price of a dozen eggs rises from $4.00 today to $5.12 in a decade, would you say the price did not change or fluctuate?…So if stable prices mean no inflation, why does the Fed crave more inflation?….

Debt is the principal reason Fed members are increasingly troubled with low inflation…Non-productive debt boosts economic activity for a short period. That is what makes it attractive to the Fed in times of sub-optimal economic growth. The flaw of this logic is that it does not produce enough income to pay off future debt….

That leaves inflation. Inflation deflates the real value of debt. Higher wages, profits, and taxes resulting from inflation make debt payments less onerous.

The Fed is trapped. They want robust economic activity and soaring asset prices. In the current environment, this can only occur with more debt and leverage. To make existing and additional debt manageable and appealing, they must reduce interest rates.

With interest rates near zero, inflation becomes a more critical tool. QE and recent programs with the Treasury are how they hope to generate inflation. The graph comparing QE to GDP shows the effect of the Fed’s herculean efforts to keep the debt scheme going….

Now you know why the Fed desperately wants you to pay more for milk, butter, eggs, bread, and toilet paper. They are deep in a trap of their own making…If the Fed does not make us pay more for goods and services, the scheme comes to an end…When QE fails to serve its purpose, the Fed will find a new trick. We fear it will be literal money printing.”

You may also like...

Translate ยป