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Rate hikes will drive inflation higher.
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Rate hikes will drive inflation higher.
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Mike Norman considers the following as important:
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| Rate hikes will drive inflation higher. |
Why did you take the $3 sticker off your glasses Mikey?
Passports we need more passports for fn everything. I want to carry reams of paperwork for my every move.
The debt to gdp ratio now is at 122%, it was recently at its peak 130%. So some of the debt has been inflated away thus far.
When Paul Volcker was playing his "gruff and a bit aloof" games debt to gdp was at 31%. Can they even raise interest rates that high now without risk of a complete implosion of the economy (like Paul did with creating a "demand shock")? It becomes a mathematical problem. Even the asinine games the treasury plays with the fed. Where the treasury is "paying the interest" to the Fed on the govs debt, that is a math problem eventually as well.
Or GDP has risen so the ratio is lower.
Didn't Paul Volcker being mislead with his interest rate hikes to 15%. Set the USD world reserve currency up for a 30 year bond bull run? But he had to stop the economy in its tracks to do it I guess.
The way I think about it is like this…..The zombies have been drinking and you are playing poker against them. The fed sees that the zombies are getting drunk and decides to stop them getting any more drunk by giving it some more vodka. It will in turn wonder why the zombies end up totally sloshed and you are taking there money because they have lost touch with reality. Been there, done that once. Never again. Another way is that they are convinced the emperor is clothed where we who follow MMT see otherwise. Steve Keen is bang on with that idea too.
I don't get it, there is inflation (even if it's transitory and it will disappear) and gold is quiet. But rate hikes will generate inflation at a faster pace than supply chain issues disappear and gold will rise?
Do you think the fed will ever get to the point where they raise rates? Trump was whipping the hell out of Powel the last time the Fed was dot plotting rate hikes while stocks flat. This looks like the same scenario repeating doesn't it?
Mike, Prof Steve Keen was on the Thom Hartmann show today. He said, the Fed raising rates will slow down the economy, and since we have high private sector debt, borrowers will have a hard time servicing their loans. Is this something you could comment on.
Keen was just about the only guy (besides the hapless Peter Schiff) who called the Financial Crisis in advance and he did so based on private sector debt levels. If Keen is worried, you should worry.
Well our lot across the pond have already started and the zombies reacted. I wait for it all to calm down and the realisation that the BoE raising interest rates will kick in. I really thought the Fed would've gone first and the MPC have surprised me and disappointed me in equal measure.
I've newmont and barrick, but I've no idea about the junior goldminers, any idea, just a small postion?
TURKEY CENTRAL BANK said that raising interest rates will cause inflation, said it today.
Ed Hyman said a few days ago next year will be a boom year for the economy and long term hold APPLE, Pfizer, Amazon
9 trillion money dumped into the system, I quess there will be inflation.
Teach them the errors of their ways , Mike . Make money the easy way & teach them a good lesson !
Great video Mike!
Looking forward to next week's MMT Report! Hoorah!
OK, agreed on rate hikes Mike, but MMT teaches OMO are just asset swaps and historically have little effect on the macroeconomy. So the "taper" should be a nothing burger.
Rate hikes would cause asset prices to decline, leading to a slowing economy, leading to less inflation.
Maybe my silver and gold miners will finally do something ?
Mike, if you're expecting inflation to increase in 2022 and 2023, what do you buy in order to make money off of that? Gold? TIPS? Options on Gold ETFs?