The latest FED rate hike (June 2022)

This a rather belated video dealing with the FED rate hike earlier this month, June 2022.

Following the recent FOMC meeting, the FED announced a rate hike of 0.75%.

This raised the Federal Funds Rate to a target range between 1.5% and 1.75%.

This was slightly higher than some commentators expected, but not altogether surprising.

There are several things I wish to say about this.

Inflation
The rate hike will do nothing to tackle inflation.

If the FED were serious about tackling inflation, then it would raise interest rates to above the level of inflation and keep them there until inflation was under control. Back in the early 1980s, previous FED chairman, Paul Volker rose raise to 20% to tackle inflation.

Also, they would forthwith stop increasing the Money Supply.

I don’t think that the FED has any intention of tackling inflation.

Indeed, I would go further than that and say they want to create more inflation. Indeed, I would go one step even further than that and say they want to create hyperinflation.

Why? Well because their ultimate aim is to inflate the debt away. It’s called “monetizing the debt”.

I think that we are headed towards Hyperinflation. Inflation will trend upwards, continue to rise on an ever steepening curve until the currency hyperinflates. Hyperinflation will, at some point in the not too distant future, render the currency worthless.

Moving on …