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By Gregory Mannarino, TradersChoice.net
Despite repeated, totally false claims to the contrary by world central banks, none more so than the Federal Reserve, central banks continue to go out of their way to deliberately fuel higher inflation.
To put this into perspective, the Federal Reserve recently raised the Federal Funds Rate by 0.25 percent in an environment where inflation is, by their numbers, at nearly 8 percent.
What this mechanism is guaranteeing WILL happen is this: inflation will continue to rise faster.
The biggest deception being sold to an unknowing public is this: “that by raising rates inflation will slow.”
The fact of the matter is this, raising rates alone will have no effect on rising inflation. Moreover, even after it was announced that the Federal Reserve was now in the process of raising rates, Fed. Chairman Powell admitted that “inflationary pressures will continue to rise.”
Today the Federal Reserve is continuing to buy Mortgage-Backed Securities, (MBS), to the tune of $40 BILLION DOLLARS A MONTH! In an environment of skyrocketing real estate prices. This mechanism of $40 billion a month in MBS is providing artificial demand and is fueling higher prices—assuring that real estate prices will continue to inflate.
Last November, the Federal Reserve announced that it would begin to “taper” asset purchases. The following chart is the Federal Reserve balance sheet, total assets being held by the Federal Reserve. This chart was taken directly from the Federal Reserve’s own website of the last 6 months—THE TRUTH IS ALWAYS HIDDEN IN PLAIN SIGHT.
Have a look at November, red circle. Do you see a taper? Or do you see a balance sheet which continues to inflate/go straight up.
The bottom line here is simple. The Federal Reserve has absolutely no intention whatsoever to slow down the pace of skyrocketing inflation here in the United States. Instead, the Federal Reserve is going out of its way to fuel even higher inflation.
The same is also true for every other central bank, they will continue to inflate—faster.
Global inflation is going to increase, moving forward at an astonishing pace, faster than ever before, and this means that food and energy prices are going to hyper-balloon along with surging debt.
Be ready for it.
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