Domestic policy can’t fight a global problem
The Fed’s conundrum here is simple.
The problems caused by inflation are global in scope. Regardless of what the Fed does, high inflation will persist.
All of the monetary and economic problems caused by the COVID response, as well as the current supply chain situation were manufactured. We discussed how the monetary and fiscal stimulus injections were seriously misguided as none of the money was sterilized as in the past. Thus, demand was heightened at the same time the supply chain was restricted.
The ongoing supply chain issues are all conjured as the globalists now control vast percentages of all supply chain inputs. This was only made possible via the wealth and power consolidation afforded to them by the quantitative easing mechanism itself.
Now they engineer heavy-handed supply side restrictions, blame them on covid, lack of testing, and the unjabbed, with the result that it drives prices higher.
Moreover, we have observed the ostensibly willful ignorance of the central banks and the governments regarding the nascent inflationary pressures of the past 12 to 18 months. I submit this was not incidental or foolish, but deliberate and intentional. The inflationary problems needed to get out of control first. Pandora’s box is now opened.
Now, the Fed wants to seal up this Pandora’s box, but it’s fighting a global problem now. To wit, Federal Reserve policy won’t have as potent an impact as it has in the past, and elevated inflation will persist, even if the Fed funds goes to 5%.
Potential Taiwan and Ukraine conflicts will throw the supply-side into further disarray
The Fed will not be able to address global problems with domestic policy. My concern is that the FED will begin to overshoot as it realizes it cannot control price inflation. The worst part of all this is that it was all avoidable in the first place. The problems of the covid scam continue to pay dividends for the globalists.
Now we are being confronted with a few potential militarized campaigns around the globe. I’m paying particular attention to the inevitable CCP showdown with Taiwan as this upcoming conflict has the potential to really throw the global supply chain into chaos.
While the Middle East problems will always simmer on the back burner, and the Russian conflagration in the Ukraine may result in many casualties, these two hot zones probably have less of an impact on the global supply chain than Taiwan’s takeover by the CCP.
I note the peculiar timing of all of these circumstances and events. I submit they are not coincidental, but rather there to show the world that a global financial regime is necessary to tackle global problems.
Complacency will prove fatal
I pity the small investor.
Barring something unforeseen, I see the next crisis as being financial in nature. I’m warning the reader to plan accordingly.
QE could have lasted a long time, but evidently that’s not what the powers have in mind. It seems the goal was to get everybody complacent and thinking that QE would last forever. Even the sarcastic alt-media jokes about the next bust and Fed response. Unfortunately, regardless of what the FED does, the problem will be deemed outside of its scope of abilities to fix.