Wolfstreet report – de FED en de groeiende inflatie
Het Wolfstreet Report kijkt naar hoe de FED de controle verloor over het discours rond de groeiende inflatie. En de gevolgen.
Mega-policy decisions to boost demand. Now mega-consequences.
Publicatie 31 oktober
Volledige transcriptie van dit Wolfstreet report
The story being propagated by the Fed is that the supply-chain nightmare caused this burst of inflation, the worst in decades.
Inflation is taking off in other countries as well, with multi-decade highs in Germany, in Europe generally, in Canada, and other places. This has spread across big parts of the globe.
But the Fed and the US government have refused to take responsibility for this bout of inflation and have blamed the supply chain snags and labor shortages, and have called this inflation “temporary” and “transitory,” denying that their reckless money-printing and interest-rate policies, and the immense deficit spending have anything to do with it.
But the Fed has lost control of the narrative.
In the 20 months since March 2020, the Fed has increased the assets on its balance sheet by $4.2 trillion, having nearly doubled its total assets to $8.6 trillion. This is a huge amount of money-creation. And this money went everywhere. It ballooned asset prices, which made asset holders a lot richer. Real estate, stocks, cryptos, a bunch of other assets. It’s the Everything Bubble.
The Fed did this to create what it calls the Wealth Effect. This has been spelled out in official papers by the Fed. The idea is that when these folks get richer, they’re going to spend some of this new wealth. And when interest rates are low, they can cheaply borrow against their assets, rather than having to sell them, and they can spend this borrowed money.
-/-/-/-/-/-/-/-/-/-/-/-/-
Verder lezen van deze transcriptie kan – onder de link – op Wolfstreet.
Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate. I appreciate it immensely. Click on the beer and iced-tea mug to find out how:
Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.
Eerdere afleveringen van het Wolfstreet report vindt u hier.