On the economic news front, over the past few days, U.S. Treasury Secretary Janet Yellen made the media rounds to assure the Plantation Workers of Slavelandia that with governments pumping in $2 trillion to boost the COVID-devastated economy, they will live “happily ever after.” And, despite being out of work and/or real wages sinking lower and just about everything costing a lot more… there is no need to worry about inflation.
“Policymaking is about identifying and addressing risks, and the most significant risk we face is a workforce that’s scarred by a long period of unemployment,” babbled Yellen on ABC’s “This Week.” She went on to say that the price spikes, like gasoline, are just “a temporary movement in prices.”
As for the mounting pile of U.S. government debt, which the Congressional Budget Office projects will hit nearly $22 trillion at the end of this year, Yellen said, “When I think about the burden of debt, I think about it mainly in terms of the interest payments that the government needs to pay on those on that debt.”
Thus, with interest rates near zero, the lower the rates, the less they have to pay to service the debt. With inflation rising, so, too, will interest rates. Thus, the higher rates go, the heavier the debt burden.
Totally Rigged
As Gregory Mannarino’s writes in his new article “INFLATE OR DIE, REVISITED,”
“In the United States, debts and deficits are hyper-ballooning. Where is all of this cash coming from to fill the gap? It is being funded directly by the Federal Reserve, which has, in the literal sense, become the lender and buyer of last resort.”
What does it mean, what’s next? Be sure to read Gregory’s astute market analyses and forecasts.
As we have noted, in front of everyone’s eyes but blind to see, with Ms. Yellen, the former chair of the U.S. Federal Reserve System, now the U.S. Treasury Secretary, the Bankster Bandits are in complete charge of the United States.
Doubling down on their Bankster power trip, President Biden appointed Nellie Liang to serve as the Treasury’s undersecretary for domestic finance. Already working with Ms. Yellen as an advisor, Ms. Liang spent most of her career working in the Federal Reserve as an “economist.”
As for inflation, while oil prices are down today, Brent crude prices have spiked 82 percent since October. Across the spectrum, from corn to lumber, prices are skyrocketing. In fact, today, the National Association of Home Builders’ chairman told CNBC, “Supply shortages and high demand have caused lumber prices to jump about 200% since last April.”
Copper prices jumped 67 percent over the past year. To note, we refer to copper as “Dr. Copper” because it is reputed to have a Ph.D. in economics due to its ability to predict global-economy strength and weakness since it is used in most sectors of industry.
Inflation ahead? Higher interest rates coming?
The Federal Reserve will do all it can to keep rates low, so the gambling game on Wall Street continues. Because when the phony, propped-up, overvalued markets crash, it will be the official start of the “Greatest Depression.” As we continue to note, the illusion of a prosperous Wall Street has no connection to the economic devastation on Main Street, which was caused by politicians launching the COVID War.
TREND FORECAST: As we have long forecast, the Bull Run markets have been driven by unprecedented stimulus spending by governments. This has, in turn, ballooned the debt bubble, thus, the fears that the fast-rising markets juiced by cheap money will spike inflation. Therefore, fund managers have been buying commodities, which are inflation hedges because the price of commodities rises in tandem with inflation.
