Forget About Tightening… the Fed WANTS Inflation
By: Graham Summers
GoldSeek.com
Tuesday, 10 May 2016
Remember how the Fed claimed it was embarking on a tightening cycle?
Well, the Fed failed to hike interest rates in January, March AND April despite the “data” hitting levels at which the Fed said it would hike. There is now talk of a potential hike in June… but the Fed futures indicate less than half of traders expect another hike before February 2017.
All talk of a tightening cycle was just another “point” in the narrative of recovery. The fact is that there has been no significant recovery for the US economy. Sure things look great if you ignore glaringly horrific data points like the employment/ population ratio, and other unmassaged data points.
The reality is that since 2012, the US economy has flat-lined.
And this is despite the Federal Reserve pumping TRILLIONS of Dollars and maintaining ZIRP.
Meanwhile, the US’s Debt to GDP ratio has risen over 100%. The US, for all intensive purposes, is beginning to look like some of the bankrupt EU nations that required bailouts.
There are only two ways to deal with this:
1) Inflation
2) Restructuring
In the last few months, several Fed officials, most notably Fed Vice-Chair Stanley Fischer stated not only that inflation was appearing in the US but that this is something the Fed “would like to happen.”
The Rest…HERE
