Inflated Intentions
Nobel Prize winning economist Paul Krugman has weighed in on inflation, dismissing its importance or impact on average Americans while also calling future Fed increased interest rates unnecessary. This, of course, signals that interest rate speculation is probably underestimating how far up it may go, even at double current projections. The target interest range is 1.5-1.75% and speculation is around 3.5%, but many of his critics are pointing out that if actual inflation is sitting between 9% and 15%, even 3.5% interest won't be enough to slow down the potential debt fueled economic crisis.
The business cycle rolls on, and 0% interest, quantitative easing, and "too big to fail" bailouts have consequences, and emergency currency creation (80% of all US dollars printed went into circulation in the last two years) may finally bring the chickens home to roost. Without a dotcom or housing bubble, or a cold war or global war on terror to disguise the crash and provide a firebreak, the current drought conditions of national and international economies leave them vulnerable to serious danger.
The truth is that inflation is misunderstood by most people who only see its effects on rising prices or interest rates and never the root causes or overall implications. The hard truth is that it gets intentionally misrepresented and by those able to cultivate profit and power from the subversion.
The silver lining, of course, is that the narrative is crumbling and maintaining the facade is becoming impossible, and while many Americans are still unaware of why their dollar is losing value, they are becoming more and more receptive to learning about it and who exactly has been responsible.
And we'll be here, chanting "End The Fed," ready to explain it.