15 Jul 2022 2:03 pm
Here's the problem with that theory. All that raising interest rates will do now is to hurt the poor and middle class even further, as their mortgages rates, car loans, and credit cards all increase costs to them, when millions are already living paycheck to paycheck, all while their wages are sinking. If inflation were to be cured tomorrow, it would lock in those record high prices AND throw us into the deepest recession imaginable with rapidly increasing unemployment and a record number of bankruptcies that would certainly be the result. American saw their credit card debt rise by $52 BILLION in the last quarter of 2021, and that trend is continuing this year as credit card balances have now reached $841 BILLION already this year. What do you think will happen when their interest rates go up by another couple of percentage points in the coming months?johndnorth » 14 Jul 2022, 4:41 pm » wrote: ↑ Inflation is ALWAYS a monetary phenomenon. Too much money was pumped into the system by senile Joe and a clueless Fed. The only way out is to raise interest rates at least to the level of the core inflation rate. The faster this is done the sooner inflation will end. Will this cause a recession? We are already in a recession. Auto loans are defaulting and some are only paying interest on their mortgage. When Volker raised rates under Carter the housing and auto companies were the first to collapse. Unemployment went to %9 and rates went to +%12. We have gone through this scenario before. Raise rates to %6 as soon as possible. Joe Biden wants to raise taxes and spend more so inflation will not quit until unemployment goes through the roof.
Are you aware of the current economic collapse currently facing countries like Sri Lanka and Ghana? Turkey has an inflation rate currently at 70%, and Egypt, Tunisia and most of sub-Sahara Africa are becoming as desperate and can be expected to seek help from the IMF to avoid the same kind of economic collapse. There are no less than 69 countries currently facing huge spikes in the cost of food, fuel, and new stringent financial conditions. From those conditions, the huge increase in crime, homelessness, suicide, drug and alcohol abuse, and mass migration are all inevitable.
This country became the strongest and wealthiest nation the world had ever seen as a direct result of ALWAYS having cheap and abundant energy resources that Biden has now stopped cold while he kisses the feet of the foolish purveyors of the "global warming" hoax. Just look at every other country that has attempted to take the path of "renewable energy" and see how their economies have been decimated. Unless and until we get this idiot out of the White House and replace him with someone who understands economics and reopens our vast fossil fuel resources, we can expect Americans to become overwhelmed with fear that the world-wide recession we're about to enter could quickly become a depression to rival that of almost a hundred years ago.