Loading ...Lacy and Jeff Snider (Not to be confused with Michael Snyder – PLEASE) have been consistently right on this one. Incidentally, they are two of the very best analysts, proven right over time.
There is consistent misunderstanding in the media about what the Fed is actually doing. All the talk about “Money printing” and the “Wave of liquidity” is actually false. The Fed has merely added to bank Reserves, which is entirely different. The Fed itself, as evidenced by Powell’s outright lies to SIxty Minutes, wants people to believe the myth because they desperately need inflation. There are only 2 ways to get rid of the excessive debt : Default or inflate it away. And Default is SOOOO Banana Republic. And since inflation isn’t actually in the cards (We are entering a Deflationary Depression) the Fed needs to talk and lie as usual, which is actually all they really can do.
Both Lacy and Jeff are entirely correct, the only way that inflation can actually occur is if the Fed does ACTUALLY start printing money (Not the same as increasing Bank reserves or QE).
And that is when the US is on a fast track to Banana Republicism!!