The Fed Has Willingly Lost Control Of Inflation
Wednesday marked the day that the Federal Reserve Chairman, Jerome Powell gave his quarterly update. A speech filled with factual errors and bumbling in coherent statements that contradicted themselves one after another. Listen to these speeches long enough and you begin to piece out what the Feds goal here is, as once you have heard all the lies and seen the actions you can extrapolate the truth from fiction.
So what are some of the past lies we have heard from the Fed, well to begin from the start of the pandemic Mr. Powell made it clear that The Federal Reserve made mistakes in the past by their interventions disproportionately not helping the poor and making their lives harder. They even went to the extent of sending another Fed President to go undercover as a homeless man to understand the plight of the poor. Yes it sounds like a reality tv show or a comedy sketch but this really happened, I believe the President name was Neel Kashkari please look up this for your self.
What has happened since then.? Nothing has fundamentally changed looking at asset prices from when the pandemic began till today asset prices have increased, food prices have increased, raw goods used to manufacture goods have increased, rents have increased and 12.7 million people are due to be evicted from their living quarters this count does not include kids.
So even with all this stated the Fed is unwilling to cease these dangerous levels of money printing and support of the economy. Looking back into its previous statements there is a trend that we see and can be seen statistically in the CPI. The Fed does not like persistent deflation though they do not say only mention it by its cousin inflation. The Fed strives for 2% inflation and it isn't shy to admit it wants prices in the economy to rise by 2% per year. The issue is that though that has been its stated goal due to the manipulation of how it counts inflation if it doesn't like the stats they will just change them to suite their mandate, If you visit shadowstats.com you will see how the calculation of the pre 1990s inflation is much different than todays and how that has dropped the calculation of inflation by 10% I believe.
So whats the take away from this.? The Fed has perfected the language of 1984 double speak to successfully shift the perception of how the economy works to their benefit. By providing cheap money and loans to their friends they insure that high inflation is persistent while leaving everyone else to deal with their greed because of their actions we have seen 4 in 10 Americans say they can no longer afford the necessities, their income now is lower than pre-pandemic, and the are borrowing on credit cards to make ends meet. While the Rich are living their best life because they are the benefactors of the plight of those 4 in 10 Americans. Therefor the Fed has willingly lost control over inflation since allowing the economy to deflate will render the once wealthy a little less wealthy if the Fed did not offer its support of low interest rates, bond purchase for the US gov, companies like apple, home purchases, over night repos and reverse repos.