by Chris Black
People think they’re smarter, and act like this is the 1980s, and you can just raise interest rates to draw down inflation.
Raising interest rates just deflates the value of assets during an inflation crisis, which makes a double whammy, and does NOT do anything to stop inflation.
The US government is purposefully pushing for global collapse, in particular because they think it will harm China more than it will harm them.
I don’t think this is correct, and it actually seems very insane. But I don’t think we can draw any other conclusions from what we see these people doing.
Worst yield curve since the early 1980s … which was a massive recession.
But back then we had low debt to GDP, below 40% whereas now it is 130%.
Plus in the early 1980s we had an energy production boom coming to ease inflation. pic.twitter.com/SGyaPwUHDW
— Wall Street Silver (@WallStreetSilv) December 8, 2022
Globally, people are experiencing inflation at levels not seen for decades as prices surge for essentials like food, heating, transport and accommodation. And though a peak could be in sight, the effects may yet get worse.
How did we get here? In two words: pandemic and war.
If that wasn’t enough, Russia invaded Ukraine in February and Western sanctions on the major oil and gas exporter sent fuel prices yet higher.
Treasury Secretary Yellen blames inflation in part on Americans ‘splurging’ on goods. pic.twitter.com/sivjmID7xg
— Moe (@MoeAlasad) December 1, 2022