Quote:
Originally Posted by jimjamuser
The FED has some tools to tame inflation and return a RUNNING AWAY system back to normal growth. But it is tricky in that, do they slam on the brakes or do they just tap the brakes through interest rate hikes?
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The Fed essentially created the RUNNING AWAY inflation train by many years of irresponsible policy of cheap money, ever increasing amounts of unsustainable debt, and creating runaway money supply. Put another way, they removed the brakes from the train and created an economy hopelessly addicted to debt. Now interest rate hikes are their only remaining tool to slow down inflation, but the pain that causes to a nation burdened with out of control debt (paying the interest to service the debt) and consumers addicted to debt is like nothing the Fed has ever had to deal with before. They created the problem and boxed themselves into a place with no good solution. The quickest and easiest way our Government could now help bring inflation under control is to a give up their delusional attempt to rapidly creat a “Green” country/economy and take all necessary measures to return to energy independence. The price of almost everything is directly correlated with the price of oil, diesel, and gas.