by Chris Black
On Wednesday next week we’ll have the CPI numbers for July. Many people expect for the next CPI to be lower than the previous month, i.e. there’s an 8.7% forecast vs. the previous 9.1%.
Even if the CPI numbers are cooked, and real inflation is probably way worse, 9% inflation is nothing to scoff at, and it is expected for the FED to do another 75 BPS rate-hike in September.
The Federal Reserve’s rise in interest rates is just a continuation of its policy of concentrating income and wealth in the hands of the One Percent.
Quantitative Easing was the cloak for the Federal Reserve to print $8.2 trillion in new money which was directed or found its way into the prices of stocks and bonds, thus enriching the small number who own most of these financial instruments.
Having maxed out this avenue of wealth concentration, the Federal Reserve is now raising interest rates in order to drive up mortgage costs to aspiring home owners.
The Federal Reserve is driving individuals out of the housing market in order to free up properties for “private equity” firms to purchase homes for their rental values.
Moreover:
Inflation means expansion of the money supply and right now a series of tsunamis of USDs are washing ashore in the US banking system as global trade is moving away from the dollar, due to the current administration’s suicidal policies vis-à-vis China and Russia (sanctions et al).
This is something the FED or anyone in USD-land will not address at all because even just acknowledging it can upset the illusion that the USD is still the best and greatest.
There is no stopping this inflation and so the FED is simply playing along trying to tape over the holes in the dam but the end result is obvious.
Also, the Covid lockdown effects are starting to show, because there’s a price to pay for halting down the global economy for a hoax pandemic, i.e. the supply chains are FUBAR (China is still enforcing Covid lockdowns), and that translates into higher prices.
The real tightening starts in September (QT) and if you ask me, the FED is trying to destroy the current financial system on purpose.
Bottom line: the United States is on the precipice of economic and social collapse.
And what are the fools in Washington doing?
The idiots are ginning up wars with Russia, China, and Iran.
This is a great article by the way: How America’s Economy Was Destroyed