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Iowa | That’s one of the reasons I think the central banks cannot control inflation going forward. There’s big enough supply chain issues as well as destruction that they will not be able to stop it. They need to allow supply/demand to work - allow prices to rise to stop spending, but those high prices also will encourage more production. The correct answer is deregulation to bring more plants online in the USA vs China. Fed needs to just get out of the bond market and let the people (investors) set the interest rate - it will rise naturally. But by supplementing the us government with cheap bonds they’re trying to play both games— and all Congress want to do is create more money. Every time Uncle Sam runs a 1 trillion deficit, they have literally created 1trillion dollars if the fed buys the bonds.
Edited by timis 4/20/2022 10:53
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