Wealthion, Released on 12/14/21
Inflation is really starting to bite. The latest Consumer Price Index — or CPI — was released last week, coming out at 6.8%, the highest inflation rate the US has seen in 40 years. Households pinched by these higher prices are asking: When will this stop? Not anytime soon, says macro analyst Wolf Richter, who just issued a report warning that getting inflation under control from here will be a difficult and lengthy process — especially as the process is being managed by “the most reckless Fed ever” The Federal Reserve, whose policies created today’s runaway prices, is now suddenly scrambling to put the inflation genie back into the bottle. It’s accelerating it taper plans and now loudly talking of hiking rates, perhaps as soon as summer 2022. This kind of monetary tightening in today’s world, of course, threatens to crater asset prices and plunge the economy into recession. Can the Fed somehow avoid that outcome? Time will tell. But as Wolf predicts, the effort and complexity involved in trying to get today’s inflation under control will undoubtedly “be a b!#ch“.
Wolf Richter is the founder of Wolf Street Corp and the publisher of WolfStreet.com. Wolf has over twenty years of C-level operations experience, including turnarounds and a VC-funded startup. He has a BA, MA, and MBA (UT at Austin). In his prior life, he worked in Texas and Oklahoma, including a decade as General Manager and COO of a large Ford dealership and its subsidiaries.
Wolf Richter: Inflation “Going To Be A B!#ch” To Get Under Control added by Herman James on
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It isn’t an issue of too much demand created by stimulus. It is the trillions of fiat dollars created out of thin air and dumped into the money supply. Too much money chasing too few goods. And beyond that, this is completely discrediting the dollar. China is going to say “no thanks” to our digital dollars, which is based on nothing but keyboard entries into Central Bank accounts.